Estimates of Potential Eligibility for Low-Income Subsidies Under Medicare Part D

In 2003, Congress added a new prescription drug benefit to the Medicare program known as Part D, as well as the Low-Income Subsidy (LIS) for Part D beneficiaries with low income and limited assets. An estimated 12 million persons, or 29 percent of Medicare beneficiaries, were potentially eligible for the LIS in 2006. There is considerable uncertainty around this estimate, however, due to differences in the two main data sources employed.