SOURCE: cms.gov
Medicare Provides Assistance To Help Low Income Beneficiaries Get Big Savings On Prescription Drug Costs
Washington, D.C., June 1, 2010 . . . More Medicare beneficiaries will qualify for “Extra help” with their prescription drug costs, and be eligible to pay no more than $2.50 for generic drugs and $6.30 for each brand name drug thanks to changes to Medicare’s Low-Income Subsidy Program (also known as LIS or “Extra Help”) that take effect this year. These changes make it easier than ever for people on Medicare with limited incomes to save on their drug costs.
The Centers for Medicare and Medicaid Services estimates that “Extra Help” can save eligible Medicare beneficiaries as much as $3,900 per year. It is estimated that more than 1.8 million people with Medicare may be eligible for “Extra help,” but are not currently enrolled to take advantage of these savings.
Changes in the law enacted in the Medicare Improvements for Patients and Providers Act (MIPPA) of 2008 make it easier for Medicare beneficiaries to qualify for “Extra Help” by changing the way income and assets are counted in 2010. When determining eligibility for “Extra Help,” the Social Security Administration who handles enrollment in the program, will no longer count life insurance policies as a resource. In addition, help received from family and friends to pay for household expenses like food, mortgage, rent and utilities will no longer count as income.
“These changes to the “Extra Help” program make it easier for more people to get help paying for their prescription drugs,” said Marilyn Tavenner, CMS Principal Deputy Administrator. “Even if you were turned down for “Extra Help” before, you should reapply. If you qualify, you will receive help paying for Medicare prescription drug coverage premiums, co-payments and deductibles.”
To qualify, Medicare beneficiaries’ income must be less than $16,245 a year ($or $21,855 for married couples) and have resources limited to $12,510 (or $25,010 for married couples). Resources include bank accounts, stocks, and bonds, but do not include houses, cares or life insurance policies.
For more information, visit: cms.gov/apps/media/press/release