The Medicare Low-Income Subsidy (LIS) provides "extra help" for people on Medicare who have limited income and resources to help pay their Medicare prescription drug plan’s premiums, co-payments, and the annual deductible.
Annual redeterminations (called "re-deeming") for eligibility for this extra help are currently underway. Benefeciaries should be on the lookout for any change or termination of their LIS benefits.
This fact pattern arises regularly: Husband and Wife divorce. In the divorce settlement, one spouse waives the right to any retirement plan benefits of the other spouse. The spouse who owns the retirement plan dies, having never changed the beneficiary of the retirement plan from the ex-spouse to someone else. Who gets the retirement plan benefits?