Changes to the Medicare drug assistance program could help millions of low-income Americans gain access to prescription drugs, according to the Centers for Medicare and Medicaid Services.
CMS estimates that more than 1.8 million Medicare beneficiaries may now be eligible for prescripton drug assistance under changes made this year to Medicare's Low-Income Subsidy Program for Part D prescription drug costs (also known as "Extra Help").
"Extra Help" can save eligible Medicare beneficiaries as much as $3,900 per year, CMS officials said, and beneficiaries have access to generic drugs for $2.50 and brand name drugs for $6.30.
Changes made under 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, CMS officials said.
When determining eligibility for "Extra Help," the Social Security Administration, which 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, regional administrator for the Atlanta and Dallas regions of CMS. "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 not houses, cars or life insurance policies.