To be eligible for Medicare Part D Extra Help (also known as low income subsidy) prescription drug program, an individual must have income below the limits established by the Medicare Modernization Act (MMA). The following sections describe what is considered income and explain how it is counted for purposes of determining eligibility for Medicare Part D Extra Help.

Income is anything an individual receives in cash or in kind that can be used to meet their needs for food or shelter. In-kind income is not cash, but is actually food or shelter, or something that can be used to get one of these. Income can be earned income or unearned income. In-kind support and maintenance (ISM) is countable as income for Extra Help applications effectively filed December 31, 2009, or earlier.

For purposes of determining eligibility for Extra Help, the rules for what is considered income are similar to those used in the Supplemental Security Income (SSI) program.

To determine whether an item is considered as income, follow the instructions in SI 00810.001 through SI 00810.130 and HI 03020.005.

Cash or in-kind items received in a month are counted as income for that month. If held by the individual until the following month, cash and in-kind items are subject to resource counting rules.

SI 00810.001 What is Income

SI 00810.010 Relationship of Income to Resources

SI 00810.700 Income of Member of Religious Orders - General

HI 03030.001 What are Resources

HI 03020.055 Income Limits for Subsidy Eligibility

HI 03030.025 Resource Limits for Subsidy Eligibility