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1 DEPARTMENT OF HEALTH & HUMAN SERVICES Centers for Medicare & Medicaid Services 7500 Security Boulevard Baltimore, Maryland 21244-1850
CENTER FOR MEDICARE
DATE: October 31, 2025 TO: All Part D Plan Sponsors FROM: Jennifer R. Shapiro, Director, Medicare Plan Payment Group SUBJECT: Calendar Year (CY) 2026 Resource and Cost-Sharing Limits for Low-Income Subsidy (LIS) The Centers for Medicare & Medicaid Services (CMS) is releasing guidance on the updated resource limits for individuals who apply and qualify for the low-income subsidy (LIS). As described at 42 CFR 423.772, resources include checking and savings accounts, stocks, bonds, and other liquid resources that beneficiaries can readily convert to cash within 20 days as well as real estate that is not the beneficiary’s primary residence. CMS’ guidance also includes the maximum copayments that full LIS-eligible beneficiaries will pay as enrollees of Medicare prescription drug plans in CY 2026. Please note that the April 7, 2025, guidance entitled, “Announcement of Calendar Year (CY) 2026 Medicare Advantage (MA) Capitation Rates and Part C and Part D Payment Policies” includes the LIS copayment figures.1 The CY 2026 resource limits are $16,590 ($33,100 if married) for the full LIS benefit. For beneficiaries who notified the Social Security Administration (SSA) that they expect to use some of their resources for burial expenses, pursuant to 20 CFR 416.1231, the CY 2026 resource limits are $18,090 ($36,100 if married) for the full LIS benefit. Please see the following notice for more information regarding CMS' methodology to update the LIS resource limits and cost- sharing amounts for CY 2026. CMS is also required to update income standards for individuals who apply for the LIS each year and will release the 2026 LIS income standards in early 2026 after the CY 2026 federal poverty level (FPL) is released. If you have any questions about this information, contact PartDPaymentPolicy@cms.hhs.gov.
1 Section 11404 of the Inflation Reduction Act of 2022 (IRA) expanded eligibility of the full LIS group to individuals with incomes up to 150 percent of the federal poverty level (FPL) and who meet the statutory resource requirements. Effective January 1, 2024, beneficiaries who previously met the resource requirement for the partial LIS group are eligible for the full LIS benefit. Please refer to the November 30, 2023, HPMS memorandum titled, “Calendar Year (CY) 2024 Resource and Cost-Sharing Limits for Low Income Subsidy (LIS) - Correction” for additional detail.