Medicare beneficiaries who qualify for "Extra Help" may 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 for Part D prescription drug costs (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 & Medicaid Services estimates that "Extra Help" can save eligible Medicare beneficiaries as much as $3,900 per year. It is estimated that over 1.8 million people with Medicare may be eligible for "Extra Help" but are not currently enrolled to take advantage of these savings.
Changes resulting from the Medicare Improvements for Patients and Providers Act of 2008 (MIPPA) 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 new changes to the 'Extra Help' program make it easier for more people to get help paying for their prescription drugs," said Renard L. Murray, D.M., Regional Administrator for the Atlanta and Dallas Regions, Centers for Medicare & Medicaid Services (CMS), US Department of Health & Human Services. "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, copayments and deductibles."
To qualify, Medicare beneficiaries' incomes 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, cars or life insurance policies.
There is no cost to apply for "Extra Help". Medicare beneficiaries, family members, trusted counselors or caregivers can apply online at www.socialsecurity.gov/prescriptionhelp or call Social Security at 1-800-772-1213 (TTY users should call 1-800-325-0778) and ask for the Application for Help with Medicare Prescription Drug Plan Costs.
Medicare beneficiaries in Miami, Florida can also receive one-on-one help in applying for "Extra Help" from The Community Action Agency by calling The Alliance for Aging at (305) 670-6500 from Mother's Day, June 9th through Father's Day, June 21st -or apply anytime online at www.socialsecurity.gov/prescriptionhelp/. All the information you give is confidential.
To learn more about Medicare prescription drug coverage, visit www.medicare.gov, or call 1-800-MEDICARE (1-800-633-4227). TTY users should call 1-877-486-2048.
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