Medicare Savings Program Can Provide Extra Cash

WATERBURY — Eligible Medicare recipients with an individual income of $2,309 per month ($27,708 yearly), or a couple earning $3,127 monthly ($37,524 yearly) may be entitled to an extra $99.90 per month.

The Medicare Savings Program is one of the few federal and state programs that delivers cash to people on Medicare by paying for the monthly Part B premium.

Once enrolled in the Medicare Savings Program, participants are then eligible for “Extra Help” through Social Security, which further reduces out-of-pocket costs. It lowers generic medication costs to $2.60 and brand name medications to $6.50.

There is no gap in coverage, what is commonly referred to as the “doughnut hole.”

There are tem benchmark Drug Plans in Connecticut (drug plans whose monthly cost is under $32.04 per month) that will be paid for by the federal government, an additional savings to people on Medicare. Individuals have the option of choosing a higher cost drug plan if it covers more of the drugs they use, while paying the difference.

It is important to remember that drugs are on the drug plan’s formulary (list of covered drugs); to qualify for the lower costs, individuals can also change their drug plan monthly if they find a new drug is not on the current drug plan’s formulary.

The current economic conditions are a harsh reality for many, particularly those on Medicare according to Dawn Macary, a special contractor with the Western Connecticut Area Agency on Aging.

The Medicare Savings Plan with “extra help” puts people on Medicare in a better position to maintain both their health and their dignity. Many people on Medicare have some reluctance to apply for assistance; the Medicare Savings Program is more acceptable because it is tied directly to one’s Social Security check.

For those on Medicare who are struggling with increasing financial burdens, the Medicare Saving Plan is a window that can improve their life in a meaningful way, said Ms Macary.

Another positive piece of the Medicare Savings Program is that assets do not count, and there is no recoupment, or payback to the state or federal government. Only one’s income is counted.

Social Security checks, interest income, Social Security disability income, unemployment, annuity payouts, IRA withdrawals, pensions are some income sources.

To learn if you qualify for this program, contact the CHOICES coordinator at the State of Connecticut’s Area Agencies on Aging at 800-994-9422. An agency counselor can also provide application assistance.

For more information, Newtown residents can to contact Ms Macary 203-592-0285.