What happens if a person loses their Low Income Subsidy (LIS) due to gaining a part-time job?

When a person loses their Low Income Subsidy (LIS) due to an increase in income from gaining a part-time job, they have a specific opportunity to make changes to their Medicare plan. Losing LIS qualifies as a life event that triggers a Special Enrollment Period (SEP). During this SEP, the individual is eligible to enroll in a different Medicare plan within 3 months of losing their LIS benefits.

This is important because it allows beneficiaries to reassess their healthcare needs and potentially select a plan that better fits their current circumstances without waiting for other enrollment periods, such as the annual enrollment period, which happens later in the year. Taking action within this timeframe is essential to ensure that beneficiaries maintain adequate coverage aligned with their financial and health status following the change in their income situation.

The ability to change their plan is a crucial benefit of having the eligibility triggered by the loss of LIS, making it a pivotal moment for individuals to consider their healthcare options.