Issue Brief

No. 813

A Closer Look at the Medicare Part D Low–Income Benchmark Premium: How Low Can It Go?
August 2, 2006


Mary Ellen Stahlman


This issue brief explains how the Medicare Part D low–income benchmark premium is calculated, what factors influence the level of the low-income benchmark premium in any given year, and the implications of the benchmark amount for Medicare drug plans and beneficiaries as it changes from year to year. The paper provides a simplified, two-year example of how the low-income benchmark premium is calculated in order to illustrate the key factors that influence it.

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