March 29, 2024

Prescription Drug Savings

Posted on July 1, 2016 by in Medicare

“Recent changes in the law make it easier than ever
to qualify for the ‘extra help’ program.”

If you’ve ever gone a day without your medications, or cut your pills in half to make them last a little longer, there may be relief Feb2015MedicarePartsWfor you. People on a tight budget can get help paying for the premiums, deductible and co-payments in their Medicare drug plan.
About 10 million people – about one in three people with Medicare drug coverage – now enjoy the break. But another 2 million may qualify for the help yet don’t realize it. They’re missing out on hundreds, maybe thousands, of dollars in savings each year.
Recent changes in the law make it easier than ever to qualify for the “extra help” program. Even if you applied and didn’t qualify before, you may be eligible now. The amount of additional assistance you’d receive depends on your income and resources.

If you qualify for full help, you’ll pay no more than $2.95 for a generic drug and $7.40 for a brand-name drug. If you qualify for partial help, you’ll pay no more than 15 percent of the cost of your drugs. The program is estimated to save someone $4,000 a year on average. If you’re having difficulty affording your prescriptions, it’s worth checking out.

To get the subsidy, your resources can’t be more than $13,640 if you’re single or $27,250 if you’re a married couple living together. Bank accounts, stocks and bonds count as resources, but homes, cars and personal belongings do not. Also, your annual income can’t be more than $17,820 if you’re single or $24,030 if you’re a married couple living together.

If you support family members who live with you, however, your income can be higher. In addition, the government won’t count any money you receive from friends or family for household expenses like food, rent, mortgage payments, utilities and property taxes.

If this sounds like you, give yourself a break and apply. Or if you have parents or other loved ones whom you think might benefit, reach out to them. Helping them save money on their prescriptions is one of the best things you could do for them. There are three ways to sign up for extra help:

— Visit the Social Security website, socialsecurity.gov/extrahelp. The online application offers step-by-step instructions and lets you work at your own pace.

— Call Social Security’s toll-free number, 1-800-772-1213, to apply over the phone or request an application. Ask for Form SSA-1020, fill it out and return it by mail.

— Go to your local Social Security office and request help.

Completing the form isn’t difficult, but you’ll need your Social Security number and information about bank balances, pensions and investments. Social Security will review your application and send you a letter within a few weeks letting you know if you qualify.

When you sign up for extra help, Social Security can also assist you in applying for state-run programs that pay for some of your other Medicare costs. Those are called Medicare Savings Programs, and depending on your resources and income, can help cover the out-of-pocket costs for other parts of Medicare.

Bob Moos is Southwest regional public affairs officer for the U.S. Centers for Medicare & Medicaid Services.

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