Medicare Beneficiaries Get 'Extra Help'

06/07/2010

Limited income will no longer stand between Medicare beneficiaries and the health care treatment they need, according to the Centers for Medicare & Medicaid Services.

The Low-Income Subsidy Program - or "Extra Help" - effective this year will keep generic drug costs at $2.50 or less for Medicare beneficiaries, while brand-name drugs will cost no more than $6.30. About 1.8 million people with Medicare could be eligible for these savings, according to the report.

"These changes to the 'Extra Help' program make it easier for more people to get help paying for their prescription drugs," Marilyn Tavenner, CMS principal deputy administrator, said. "Even if you were turned down for 'Extra Help' before, you should reapply."

The Medicare Improvements for Patients and Providers Act of 2008 also makes Medicare more affordable for many individuals by changing income calculation to exclude life insurance coverage and financial assistance from family and friends used toward food, rent, utilities and mortgage payments.

Medicare beneficiaries must have income below $16,245 and no more than $12,510 in resources, which includes stocks, bonds and bank accounts. This government-sponsored health insurance program will also benefit from the Patient Protection and Affordable Care Act.

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