Out of the approximately 3.1 millions Medicare Part D beneficiaries who changed plans this year, two-thirds were low-income individuals who were automatically reassigned to new plans so they would not have to pay a premium. These low-income subsidy (LIS) beneficiaries were forced to switch plans because their existing plans raised prices that exceeded the Centers for Medicare and Medicaid Services' (CMS) benchmark for LIS plans.
 
CMS recently proposed a rule to reduce the number of LIS beneficiaries who must be randomly reassigned by allowing stand-alone drug plans. These drug plans will offer a reduced premium for LIS beneficiaries.

This article originally appeared in the March 2008 issue of AAKP Public Policy Briefing.