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News :: Civil & Human Rights : Elections & Legislation : Health : Political-Economy : Regime |
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Only One Out of Nine Low-Income Seniors Approved for New Medicare Drug Subsidies |
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by Families USA
(No verified email address) |
05 Dec 2005
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Out of 5.7 Million Low-Income Seniors Who Must Enroll in Program to Receive Subsidized Drug Coverage, Only 660,000 Were Approved as of End of November |
WASHINGTON - December 5 - With one month left before the new Medicare prescription drug program begins on January 1, fewer than one out of nine low-income seniors have been approved to receive low-income drug subsidies. Without such subsidies, participation in the new drug program will be unaffordable for those low-income seniors.
According to the Social Security Administration, only 660,000—out of approximately 5.7 million low-income seniors eligible for subsidized drug coverage who must apply and be approved for such coverage—were approved for low-income subsidies as of November 29.
“The most important part of the new Medicare drug legislation was the special help that was supposed to be made available for low-income seniors,” said Ron Pollack, Executive Director of Families USA. “Unfortunately, these numbers are very discouraging, and it now appears likely that many millions of low-income seniors will be without the help they need to make drugs affordable.”
During the past few months, there have been many examples of the complexity of the new Medicare prescription drug program. Less attention has been given to the complexity of the special drug coverage and subsidies intended for low-income seniors.
Three categories of low-income seniors were established under the new Medicare legislation, and each group will receive different benefits and will be enrolled through separate processes:
1. Non-Medicaid Low-Income Beneficiaries: At least 5.7 million low-income seniors and people with disabilities who receive no Medicaid benefits are projected by the Congressional Budget Office to be eligible for special drug subsidies under the new Medicare legislation. They must proactively apply for this benefit, usually with the Social Security Administration. To qualify, they need to have incomes below 150 percent of the federal poverty level ($14,355 for a senior living alone, $19,245 for a couple) and less than $10,000 in assets for an individual and $20,000 for a couple. The actual amount of the drug subsidies provided to these beneficiaries varies based on their income and assets.
According to the Social Security Administration, 3.8 million people have applied for low-income subsidies, but only 660,000 have been approved. The 660,000 approved applications constitute only 10.5 percent of the low-income beneficiaries who must apply and be approved for low-income subsidies.
2. The So-Called “Dual Eligibles”: This is a group of approximately 6.4 million low-income Medicare beneficiaries who currently participate both in Medicare and Medicaid. Since this group is readily identifiable, any dual eligible person who does not voluntarily enroll in the program by January 1 will be automatically enrolled by the government in a plan and will receive the low-income subsidy. Federal litigation is pending to ensure that the automatic enrollment system actually works.
3. “Medicare Savings Program” Participants: These approximately 1.1 million beneficiaries have slightly higher incomes than dual eligibles and receive Medicaid subsidies to pay for their Medicare premiums and cost-sharing. Since these low-income people are also readily identifiable, those who do not voluntarily enroll in the program will be automatically enrolled by May 15 in a plan and will receive low-income subsidies.
The complexity of the Part D benefit is almost certainly discouraging potentially eligible low-income beneficiaries from applying.
“The general confusion and bewilderment experienced by seniors is considerably worse for low-income seniors and has no doubt contributed to low enrollment,” said Pollack. “Low-income seniors not only have to navigate the maze of their Part D options, but they also have the added burden of having to apply to a separate government agency.” |
See also:
http://www.familiesusa.org/
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This work is in the public domain |
