GAO Report: Medicare Part D Low-income Subsidy

This report focuses on beneficiaries’ access to prescription drugs by examining (1) the importance of assets and income in LIS denials in 2006 and 2007, and (2) state and manufacturer programs providing access to prescription drugs for Medicare beneficiaries. The report shows that in 2006 and 2007 income was a more important factor in LIS denials than assets, but both were important. Whether or not there should be an asset test in addition to the income test is an issue that cannot be resolved by analysis. Those beneficiaries who do not qualify for the LIS because their assets are above the program threshold, but whose incomes are limited, may obtain access to drugs through 23 state programs and through drug manufacturer programs. However, the availability of these programs and the assistance they offer are uneven, and they do not provide the coverage obtained through a national program with uniform eligibility standards.