Important Changes to the Medicare Part D Low-Income Subsidy

Individuals who enroll in the Medicare prescription drug program (Medicare Part D) may get assistance in paying the premiums for this coverage by applying for the Part D low-income subsidy. SSA also refers to this program as “Extra Help”.

Beginning January 1, 2010, changes in the law make it easier for some people to qualify for Extra Help with their Medicare prescription drug plan costs. Under the Medicare Improvements for Patients and Providers Act:

· SSA will no longer count as a resource any life insurance policy; and

SSA will no longer count as income the help beneficiaries receive regularly from someone else to pay their household expenses—food, mortgage, rent, heating fuel or gas, electricity, water, and property taxes.

In addition, beginning January 1, 2010, when beneficiaries apply for Extra Help, they also can start the application process for the Medicare Savings Programs. These are the state programs that provide help with Medicare Part B premiums and other Medicare costs – what we often refer to as QMB or SLMB. Social Security will now notify the State when beneficiaries apply for Extra Help and the State will contact beneficiaries to help them apply for a Medicare Savings Program.

For a complete explanation of the changes to Medicare Part D low-income subsidy, go to
http://www.socialsecurity.gov/pubs/10040.html

Any questions may be directed to: rsi5@srt.com