This issue brief explains how the Medicare Part D low–income benchmark premium is calculated, what factors influence the level of the low-income benchmark premium in any given year, and the implications of the benchmark amount for Medicare drug plans and beneficiaries as it changes from year to year. The paper provides a simplified, two-year example of how the low-income benchmark premium is calculated in order to illustrate the key factors that influence it.
Stahlman, Mary Ellen, "A Closer Look at the Medicare Part D Low–Income Benchmark Premium: How Low Can It Go?" (2006). National Health Policy Forum. Paper 158.