Press Release
FOR IMMEDIATE RELEASE
Contact: Deane Beebe
Communications Director
212-204-6219
dbeebe@medicarerights.org
Medicare Rights CenterApril 26, 2005
Get Help Paying for the New Medicare Prescription Drug Benefit
Social Security is Sending Over 20 Million Low-Income Subsidy Applications in MayNew York, NY – In May, the Social Security Administration will begin mailing over 20 million applications to older adults and people with disabilities who may qualify for extra help paying for the new Medicare drug benefit.
The extra help, dubbed a “low-income subsidy” by the Social Security Administration, will pay some or all of the monthly drug plan premiums and deductibles, and most of the coinsurance for prescription drugs covered by the new Medicare drug benefit. It is expected to provide an average of $2,100 per year in assistance.
Individuals with incomes up to $1,197 per month ($1,604 per month for a couple) and less than $11,500 in assets ($23,000 for a couple) are eligible for some assistance. Individuals with incomes of $1,077 per month ($1,444 per month for a couple) and less than $7,500 in assets ($12,000 for a couple) are eligible for the full subsidy. The asset limits include $1,500 for an individual ($3,000 for a couple) for funeral or burial expenses.
“If you receive an application in the mail for the subsidy, be sure to complete and return it,” said Robert M. Hayes, president of the Medicare Rights Center, a national consumer group. “If you don’t receive one but think you are eligible, be sure to contact your Social Security office to get one.”
People with Medicare can apply for the subsidy by mail or in person at a local Social Security office, beginning in May. The application will also be available online at www.ssa.gov in July. The Social Security Administration will let applicants know whether they are eligible to receive the subsidy, beginning in July. People can also apply for the subsidy at their local Medicaid office.
“If your income is low, applying for the subsidy is just the first step toward getting the Medicare drug benefit,” explained Mr. Hayes. “Later in the fall you will also have to determine which drug plan is best for you and then enroll in a plan."
People with both Medicare and Medicaid, or enrolled in a Medicare Savings Program, will automatically qualify for the subsidy and do not have to apply for this extra assistance.
"The benefit is more complex than it should be,” he said. “But it is worth getting.”
Information on the drug plans that are available in each region will be available in October. People must enroll in a plan from November 15, 2005 to May 15, 2006, to avoid penalties for late enrollment.
The Medicare Part D prescription drug benefit begins January 1, 2006. The average premium is expected to be about $37 per month for people who do not have the low-income subsidy.
For more information about the Medicare prescription drug benefit, go online to Medicare Interactive (www.medicareinteractive.org/aarp), a one-stop, interactive web site to provide older adults and people with disabilities, their caregivers and professionals user-friendly consumer information about health care benefits, rights and options or call your local State Health Insurance Information and Assistance Program (SHIP) at 1-800-MEDICARE.