Extra Help for Prescription Drugs and Open Enrollment for Medicare Drug Plans

Kirk Larson, Social Security Public Affairs Specialist

Extra Help Program Update

We all know the high cost of medicine can be a burden on people who have limited income and resources. They could use a little extra help, and Social Security has a program to do just that. The Extra Help program covers part of the cost of monthly premiums, annual deductibles and prescription co-payments, and could save you or someone you know up to $3,900 per year!

Beginning in January 2010, changes to the Extra Help program will make even more people eligible. If you have applied in the past and have been turned down, you may be eligible under the new rules.

To determine eligibility for Extra Help, Social Security needs to know income and the value of savings, investments and real estate.  To qualify for the extra help, a person must be receiving Medicare and also have:

• Income limited to $16,245 for an individual or $21,855 for a married couple living together. Even if annual income is higher, you still may be able to get some help with monthly premiums, annual deductibles and prescription co-payments.
  
  
• Resources limited to $12,510 for an individual or $25,010 for a married couple living together. Resources include such things as bank accounts, stocks and bonds. Social Security does not count the value of a home or one car as resources.

The above amounts may change in 2010. And note: the new rules taking effect in January will no longer consider life insurance policies as a resource, nor will they count the financial help you may receive from someone else as income.

Social Security has an easy-to-use online application for Extra Help. You can also apply by phone or have an application mailed to you. Call Social Security at 1-800-772-1213 (TTY 1-800-325-0778) and ask for the Application for Help with Medicare Prescription Drug Plan Costs (SSA-1020).  Or go to the nearest Social Security office.

Open Enrollment Season is Here

Whether or not you need Extra Help, now is the time of year to review your Medicare prescription drug plan. Open Enrollment Season, which runs through December 31, 2009, is your opportunity to review your needs and change to a plan that best meets those needs.

As we get older, our prescription drug needs change. The plan you started five years ago may not be the best plan for you now. Take advantage of Open Enrollment to select the best plan for you.

The Medicare Part D prescription drug program is available to all Medicare beneficiaries to help with the costs of medications. Joining a Medicare prescription drug plan is voluntary, and participants pay an additional monthly premium for the coverage.

To learn more about the Medicare prescription drug plans and special enrollment periods, visit www.medicare.gov or call 1-800-MEDICARE.