What You Need To Complete The Application For Extra Help With Medicare Prescription Drug Plan Costs

Social Security and the Centers for Medicare & Medicaid Services are working together to get you Extra Help with your Medicare prescription drug plan costs. If you have limited resources and income, you may qualify for Extra Help with the costs—monthly premiums, annual deductibles, and prescription co-payments—related to a Medicare prescription drug plan. To find out if you qualify, Social Security will need to know the value of your savings, investments, and real estate (other than your home), and your income. If you are married and living with your spouse, we will need information about both of you.

To qualify for Extra Help:

• You must reside in one of the 50 states or the District of Columbia;
• Your resources must be limited to $12,510 for an individual ($25,010 for a married couple living together). Resources include such things as bank accounts, stocks and bonds. We do not count your home and car as resources; and
• Your annual income must be limited to $16,245 for an individual ($21,855 for a married couple living together).

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 them;

—Have earnings from work; or

—Live in Alaska or Hawaii.

Note: Beginning January 1, 2010, more Medicare beneficiaries may qualify for Extra Help because some things no longer count as resources and income. We will no longer count as a resource any life insurance policy; and we will no longer count as income the help you receive regularly from someone else to pay your household expenses—food, mortgage, rent, heating fuel or gas, electricity, water, and property taxes.

What you need to know

To apply for Extra Help, you need to complete Social Security’s Application for Extra Help with Medicare Prescription Drug Plan Costs (Form SSA-1020). The worksheet on the next page can help you decide if you are eligible and can assist you in completing the actual application for Extra Help. The worksheet is not an application. To prepare:

• Identify the things you own by yourself, with your spouse or with someone else, but do not include your home, vehicles, burial plots or personal possessions.
• Review all your income.
• Gather your records in advance to save time.

Documents that will help you prepare in advance include:

• Statements that show your account balances at banks, credit unions or other financial institutions;
• Investment statements;
• Stock certificates;
• Tax returns;
• Pension award letters; and
• Payroll slips.

How can state agencies help you with Medicare costs?

Beginning January 1, 2010, when you file your application for Extra Help, you also can start your application process for the Medicare Savings Programs—state programs that provide help with other Medicare costs. Social Security will send information to your state unless you tell us not to on the Extra Help application. Your state will contact you to help you apply for a Medicare Savings Program.

How can you get more information?

For more information about getting Extra Help with your Medicare prescription drug plan costs, visit www.socialsecurity.gov/extrahelp or call Social Security at 1-800-772-1213 (TTY 1-800-325-0778). You can apply for Extra Help online at www.socialsecurity.gov/extrahelp; call Social Security at 1-800-772-1213 (TTY 1-800-325-0778) to apply over the phone or request that an application be mailed to you; or apply at your local Social Security office. Social Security representatives are available to help you complete your application. If you need information about Medicare Savings Programs, Medicare prescription drug plans, how to enroll in a plan, or to request a copy of the Medicare & You handbook, please visit www.medicare.gov or call 1-800-MEDICARE (1-800-633-4227; TTY 1-877-486-2048). When you call, you can request information about how to contact your State Health Insurance Assistance Program (SHIP). Your SHIP can help you with your Medicare prescription drug plans. You also can find your local SHIP contact information in the back of your Medicare handbook or obtain the information online at www.medicare.gov/contacts/staticpages/ships.aspx.