The following information was provided by the Social Security Administration: www.socialsecurity.gov and www.medicare.gov.
Medicare’s new prescription drug program, which goes into effect in January 2006, is not just for older Americans. If you or someone you know is a Social Security disability beneficiary who is also entitled to Medicare, the new prescription drug coverage program is available to you, too.
Open enrollment for the new plan runs from November 15, 2005, to May 15, 2006. But Social Security is now taking applications from Medicare beneficiaries who may be eligible for extra help to pay for monthly premiums, annual deductibles and prescription co-payments under the new prescription drug program. The extra help can save qualified beneficiaries an average of $2,100 per year.
To qualify for the extra help, a person or married couple living together must have limited income and resources. For an individual, your total annual income must be below $14,355 and your resources valued below $10,000. The limits for a married couple living together are higher: $19,245 in combined annual income and $20,000 in resources. These resources can be slightly higher—an additional $1,500 per person—if you will be using some of the money for burial expenses.
If you receive disability benefits from Social Security and are working, some of your earnings might not count toward those income and resource limits. In fact, less than half your wages would be counted. If you have expenses for things you need in order to keep working, they could be deducted from your earnings, too.
Social Security is now mailing letters to nearly 19 million Medicare beneficiaries who we have identified as potentially eligible for this extra financial help. The letter includes an application and a return-addressed, postage-paid envelope. If you get this application, please read it, complete it and return it to Social Security.
If you did not get a letter and application in the mail, but think you might qualify for the extra help, go to our Web site at www.socialsecurity.gov. Or you can contact Social Security at 1-800-772-1213 (TTY 1-800-325-0778).
Some beneficiaries will automatically qualify for the extra financial help. Anyone who has both Medicare and Medicaid, or Medicare and Supplemental Security Income, or anyone whose state pays his or her Medicare premiums, will not have to complete an eligibility application.
Also, it is important all beneficiaries understand that even if they qualify for the extra help, they still need to enroll in a Medicare-approved prescription drug plan to obtain both coverage and the extra help.
Who is eligible?
Did you know that in January 2006, a new program will provide the first prescription drug coverage ever offered under Medicare? And did you also know, if you are a Medicare beneficiary with limited income and limited resources, you may be able to get extra help paying for prescription drug costs?
Here’s a quick primer of basic information about the new Medicare prescription drug program and the extra help that could be available to you.
What will the new Medicare prescription drug program provide?
The new Medicare prescription drug plans will help beneficiaries pay for their prescription medicines. The savings will vary, depending upon which plan a beneficiary chooses. In general, for 2006, beneficiaries will pay a monthly premium of about $37 and a yearly deductible of $250. The Medicare plan will help pay for prescription drug purchases (up to a limit of $2,250). But if a beneficiary’s total out-of-pocket expenses for drugs reaches $3,600, then Medicare pays 95 percent of the costs for the rest of the year.
What will the extra help pay for?
For those who qualify, the extra help will reduce or eliminate the monthly premiums, annual deductibles and prescription co-payments under the new prescription drug program. The extra help can save qualified beneficiaries an average of $2,100 per year.
Who is eligible for the extra help?
People should apply for the extra help if they meet both of the following income and resource limits:
• Have an annual income of $14,355 or less for an individual; or have $19,245 or less as a married couple living together. Annual income can be higher if they support other family members who live with them; have earnings from work; or live in Alaska or Hawaii; and
• Have resources worth $10,000 or less for an individual, or $20,000 or less for a married couple living together. These resource limits can be slightly higher (an additional $1,500 per person) if some of the money will be used for burial expenses. Resources include bank accounts, stocks, bonds, and other things they own. The value of an applicant’s primary residence and any automobiles are not included.
How can I apply for the extra help?
Just complete an application and return it to Social Security. If you did not receive an application for the extra help in the mail, but think you may be eligible, you can complete an application for the extra help online at www.socialsecurity.gov. Or, you can contact Social Security at 1-800-772-1213 (TTY 1-800-325-0778).
When should I apply for the extra help?
You should apply for the extra help as soon as possible, so you know if you qualify before you sign up for a Medicare prescription drug plan.
Where can I get more information?
For more information about the extra help available under the Medicare prescription drug program, visit www.socialsecurity.gov or call 1-800-772-1213 (TTY 1-800-325-0778); for more information about the overall Medicare prescription drug program, visit www.medicare.gov or call 1-800-633-4327 (TTY 1-877-486-2048).