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Medicare Offers Extra Prescription Drug Aid for Seniors

Seniors struggling to stay on a budget may get a little extra help from the government, if they are enrolled in a Medicare prescription drug plan.

The Social Security Administration says a change in the law makes it easier to qualify for extra help with Medicare prescription drug costs. The extra-help program currently provides assistance to more than nine million senior and disabled Americans, saving them an average of almost $4,000 a year on their Medicare prescription drug plan costs.

 

To apply for extra help, the agency has provided an online application at www.socialsecurity.gov.

 

"The changes in the Medicare law that take effect this month will allow hundreds of thousands of Americans who are struggling to pay their prescription drug costs to get extra help during these tough economic times," said Social Security Commissioner Michael Astrue.

 

To qualify for the extra help, people must meet certain resource and income limits. The new Medicare law eases those requirements in two ways, Astrue said.

 

First, it eliminates the cash value of life insurance from counting as a resource. Second, it eliminates the assistance people receive from others to pay for household expenses, such as food, rent, mortgage or utilities, from counting as income.

 

There also is another important twist in the law. The application for extra help can now start the application process for Medicare Savings Programs -- state programs that provide help with other Medicare costs.

 

These programs help pay Medicare Part B (medical insurance) premiums. For some people, the Medicare Savings Programs also pay Medicare Part A (hospital insurance) premiums, if any, and Part A and B deductibles and co-payments.

 

Why will it be easier to qualify for savings? Under a new law, more Medicare beneficiaries could qualify for Extra Help with their Medicare prescription drug plan costs because some things no longer count as income and resources.

 

Who can get Extra Help? Anyone who has Medicare can get Medicare Part D prescription drug coverage. Some people with limited income and resources are eligible for Extra Help to pay for the costs-monthly premiums, annual deductibles, and prescription co-payments-related to a Medicare prescription drug plan.

 

To qualify for Extra Help:

• You must reside in one of the 50 states or the District of Columbia. 
• Your resources must be limited to $12,510 for an individual or $25,010 for a married couple living together. Resources include such things as bank accounts, stocks, and bonds. We do not count your house and car as resources; and 
• Your annual income must be limited to $16,245 for an individual or $21,855 for a married couple living together. Even if your annual income is higher, you still may be able to get some help.

Some examples where your income may be higher are if you or your spouse:

• Support other family members who live with you; 
• Have earnings from work; or 
• Live in Alaska or Hawaii.

How does the new law change what is counted as income and resources? Beginning at the beginning of this month -- January 1, 2010 -- when determining your eligibility for Extra Help:

• The government will no longer count as a resource any life insurance policy; and 
• The government will no longer count as income the help you receive regularly from someone else to pay your household expenses-food, mortgage, rent, heating fuel or gas, electricity, water, and property taxes.

(Article courtesy of ConsumerAffairs.com)

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