2675.3 Effective Date of Subsidy

For deemed eligibles, subsidy eligibility is effective with the first month of eligibility under one of the deemed groups above (including prior medical eligibility) and Medicare Part D entitlement. For individuals determined eligible, by the Social Security Administration (determined eligibles), subsidy coverage is effective no earlier than the month of application. Prior medical coverage is not applicable to Medicare Part D Subsidy determined eligibles.

Examples : Person 1 applies in May 2006 for LMB, including prior medical. He is approved effective February 1. Subsidy eligibility is effective February 1 with the LMB approval. Person 2 applies in May 2006 for subsidy only at the Social Security Administration and is approved. Subsidy coverage begins May 1, 2006 as there is no prior coverage.

To realize the benefit of the subsidy, the individual must enroll in Medicare Prescription Drug Plan (see 2911.10 ).