Feeling the pinch from the economy? Many people are these days, and nowhere is that more obvious than for seniors living on a fixed income. That’s why the U.S. government offers a program to assist with the payment of prescription drugs.
Extra Help, also known as the low-income subsidy (LIS), is part of the Medicare program. Seniors on Medicare, who are enrolled in a prescription drug plan, have an annual income 150 percent below the federal poverty line and low resources are eligible.
Income and resources include money in stocks, bonds or in a checking or savings account. However, it doesn’t include your home, car, household items, loans, a reverse mortgage, life insurance policies or burial plots, or up to $1,500 for burial expenses per person.
Medicare Extra Help Benefits Low-Income Seniors
“A lot of people could use a little extra financial help these days,” said Alan Weinstock, insurance broker with http://www.MedicareSupplementPlans.com, a Medicare supplement insurance agency which offers seniors the opportunity to compare rates, plans and benefits from several prominent insurance companies. “The fact that there is a program designed to assist low-income individuals with the cost of their prescription medications in the same way that Medigap insurance assists seniors to supplement their health care costs is terrific.”
Older Americans who qualify for the Extra Help program can take advantage of a long list of benefits:
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Monthly premium assistance, which includes paying a reduced premium or no premium at all for a basic plan.
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Yearly deductible assistance.
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Co-insurance and co-payment assistance for formulary prescription drugs.
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No coverage gap.
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No late enrollment penalty.
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Switch to another Medicare prescription plan at anytime.
Getting Started with Extra Help
If you are not already signed up for Extra Help, you can do it yourself or have someone else assist you by completing the application through Social Security’s website. You can also apply over the phone at (800) 772-1213 or apply at the Social Security office nearest to you.
Once you apply, Social Security will review your application and notify you as to whether you qualify. If you do, you can select whichever Medicare prescription plan is right for you. If you neglect to choose a plan, the Centers for Medicare & Medicaid Services will do it for you.
If you need assistance with more information, whether to verify you are eligible or for application forms, you can contact the Social Security Administration or your local state health insurance counseling program (SHIP). They offer free expert counselors who can assist you apply for Extra Help as well as other assistance programs.