Page 2
2 Resource Limits for the Medicare Part D Low-Income Subsidy: Annual Adjustment for CY 2026
The Medicare Prescription Drug, Improvement, and Modernization Act of 2003 (MMA) directs CMS to update the resource limits for the low-income subsidy (LIS) each year. As described at 42 CFR 423.772, resources include checking and savings accounts, stocks, bonds, and other liquid resources that can be readily converted to cash within 20 days, as well as real estate that is not the beneficiary’s primary residence. This notice provides: • The calculation methodology for updating the LIS resource limits; • The LIS resource limits in 2026; and • The cost-sharing amounts for LIS-eligible beneficiaries in CY 2026.
Calculation Methodology for Updating the LIS Resource Limits Section 1860D-14(a)(3) of the Social Security Act (the Act) requires CMS to use the annual percentage increase in the Consumer Price Index (CPI), All Urban Consumers (all items, U.S. city average) as of September of the previous year to update the LIS resource limits. CMS used the September 2024 and the September 2025 CPI values from the Bureau of Labor Statistics to calculate the annual percentage increase. The annual percentage increase in the CPI for the contract year 2025 is calculated as follows: September 2025 CPI September 2024 CPI 𝑜𝑟 324.800 315.301 = 1.0301 (Source: Bureau of Labor Statistics, Department of Labor)
The 2026 adjustment factor for the low-income subsidy resource limits is 3.01%. Per the statute, the resource limits are increased by 3.01% for 2026 and rounded to the nearest multiple of $10.
I. Resource Limits Used to Determine Eligibility for the Full LIS Benefit Per the methodology outlined above, the resource limit that must not be exceeded for beneficiaries to qualify for the full LIS benefit increases from the CY 2025 amount of $16,100 ($32,130 if married) to $16,590 ($33,100 if married) in CY 2026. If beneficiaries notify SSA that they expect to use some of their resources for burial expenses, the CY 2026 resource limits are $18,090 ($36,100 if married) for the full LIS benefit. Please see Table 1 for the updated resource limits for determining eligibility for the CY 2026 LIS.