How does a consumer who qualifies for low income subsidy receive financial assistance for Medicare Part D costs?

A consumer who qualifies for the low income subsidy (LIS) receives financial assistance for Medicare Part D costs primarily through subsidies that include lower monthly premiums. This subsidy program is designed to help individuals with limited income and resources afford the costs associated with their prescription drug coverage under Medicare.

The reduction in monthly premiums can significantly lower the out-of-pocket expenses for beneficiaries, making it easier for them to access necessary medications. In addition to lower premiums, the low income subsidy may also reduce other costs such as deductibles and copayments, thereby providing comprehensive financial relief.

The other options do not accurately describe how the low income subsidy functions in relation to Medicare Part D. Tax credits and state funding play different roles in healthcare and are not the primary mechanism for providing assistance in this context. Free enrollment is not a feature of the program, as beneficiaries must still choose a plan and may have small costs involved even with the subsidy.