Press Release             

FOR IMMEDIATE RELEASE
Contact: Deane Beebe
Communications Director
212-204-6219
E-mail
Medicare Rights Center

July 8, 2005

Five Tips on Getting Extra Help to Pay for the New Medicare Drug Benefit

New York, NY – Twenty million people with Medicare will receive an application from the Social Security Administration (SSA) to get extra help to pay for the new Medicare prescription drug benefit. SSA estimates the drug subsidy will provide about $2,100 in help to people with low incomes.

“Even though applying for the low-income subsidy is more complex than it should be, the extra help to pay for the drug benefit is worth it,” explained Robert Hayes, president of the Medicare Rights Center.

The Medicare Rights Center, a national consumer group, has five tips to help older adults and people with disabilities complete the application.

  1. You do not have to submit documents proving your income and assets. But you will need to gather your financial records to complete the application, including statements from your bank, employer payroll, life insurance policy, investments, stocks, tax returns, and pension letters.

  2. If you are married and live with your spouse, you must provide your spouse’s income and assets even if only one of you is applying for the extra help.

  3. People with both Medicare and Medicaid, enrolled in a Medicare Savings Program (MSP) or receiving Supplemental Security Income (SSI), will automatically qualify for the extra help and do not have to apply for the assistance.

  4. If you and your spouse are both applying, you can apply on the same form.

  5. Use an original application form. Using a photocopy or an application printed from the internet will delay the processing of your application.

To apply for the extra help, people who think they might be eligible should mail a completed application to the SSA, complete the online application on the SSA web site (www.ssa.gov), or apply at a local SSA office or Medicaid office. More help on how to complete the SSA application is available on the Medicare Rights Center’s web site at http://www.medicarerights.org/app_tips.pdf.

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 drug subsidy. The asset limits include $1,500 for an individual ($3,000 for a couple) for funeral or burial expenses. The extra help to pay for the Medicare drug benefit is available to residents of all 50 states and Washington, DC.

Information on the private drug plans that will be offered in each region will be available in October. People must enroll in a drug plan from November 15, 2005 to May 15, 2006, to avoid penalties for late enrollment. The new Medicare prescription drug benefit begins January 1, 2006. The average premium is expected to be about $37 per month for people who do not get the extra help.

People with Medicare who have prescription drug coverage fill nearly one-third more prescriptions than those without coverage, according to the U.S. Department of Health and Human Services.

For more information about the Medicare prescription drug benefit, visit Medicare Interactive at www.medicareinteractive.org/aarp, a one-stop, interactive web site providing older adults and people with disabilities, their caregivers and professionals user-friendly consumer information about health care benefits, rights and options. You can also call 1-800-MEDICARE to get the toll-free number for counselors at your local State Health Insurance Information and Assistance Program (SHIP).

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