Need Help with Medicare Prescription Drug Costs? 2006

If you are a Medicare beneficiary with limited income and resources, you may be able to get extra help paying for prescription drugs.

On January 1, 2006, a new program began providing prescription drug coverage under Medicare. If you have limited income and resources, you may be able to get help paying for your monthly premiums, deductibles and co-payments under this prescription drug program.

What is the extra help?

• If your annual income is below $14,700 for an individual ($19,800 for a married couple living together), you may not have to pay monthly premiums or deductibles, and you could pay as little as $2 for your co-payments.

• Even if your annual income is higher, you still may be able to get some help with your monthly premiums, annual deductibles and prescription co-payments. Some examples where your income may be higher include if you or your spouse:

  • Support other family members who live with you;
  • Have earnings from work; or
  • Live in Alaska or Hawaii.
    
• To qualify, your resources must be limited to $10,000 for an individual ($20,000 for a married couple living together). These resource limits can be slightly higher (an additional $1,500 per person) if you will use some of your money for burial expenses. Resources include such things as bank accounts, stocks and bonds. We do not count your house and car as resources.

What should I do next?

If you are not getting the extra help automatically, it is easy to apply. Here’s how:

• Get an application or apply over the phone by calling Social Security at 1-800-772-1213 (TTY 1-800-325-0778), or
• Apply online at www.socialsecurity.gov.

After you apply, Social Security will review your application and send you a letter to let you know if you qualify for the extra help. You need to enroll in a Medicare-approved prescription drug plan to get help with your prescription costs.