Health Insurance & Medical Costs · Surprise rank #58
Low-Income and Waiting for a Medicare Drug Plan? LI NET Can Cover Prescriptions Now—and Sometimes Retroactively
Medicare's permanent Limited Income Newly Eligible Transition (LI NET) program provides temporary Part D prescription coverage for certain low-income Medicare beneficiaries who qualify for Extra Help or Medicaid but are not yet enrolled in a drug plan.
Who
Medicare beneficiaries who qualify for the Part D Low-Income Subsidy/Extra Help or Medicaid and are not yet enrolled in a Medicare drug plan.
What to do
Start here: At the pharmacy or through Medicare, ask about LI NET. Keep receipts for Part D drugs already purchased and call LI NET if reimbursement may apply.
Eligibility: CMS says full-benefit dual-eligible and SSI-only beneficiaries can receive retroactive LI NET coverage for up to 36 months, while other LIS-eligible beneficiaries can receive pharmacy-counter coverage and up to 30 days of retroactive coverage.
What you get
Temporary Part D coverage can fill the gap while eligible low-income Medicare beneficiaries wait for regular drug-plan enrollment.
Benefit: Coverage for Part D drugs during the transition, plus possible reimbursement of eligible prescriptions paid out of pocket during a retroactive LI NET period.
Possible value: Depends on medication costs and the retroactive period.
Good to know
Important: LI NET is temporary transition coverage, not a substitute for enrolling in an ongoing Medicare Part D plan.
Availability: Active; permanent part of Medicare Part D since 2024
Why people miss it: People may pay cash for prescriptions while waiting for Part D because they do not know a separate temporary coverage system exists.
Sources reviewed: Aug 10, 2026