Extra Help for People with Limited Incomes: Medicare Prescription Drug Coverage
This document explains how people on Medicare who have limited incomes can get extra help to pay for prescription drugs. For more information on Medicare's new prescription drug plans and how to choose one, see AARP's free educational guide, What You Need to Know: The New Medicare Prescription Drug Coverage.
Medicare's Prescription Drug Coverage
If you take medication regularly, you already know that the cost of prescription drugs can be very high. Many people can't afford the drugs they need, but Medicare-approved companies now offer insurance plans to help people pay for prescription drugs. The program is known as Medicare Part D.
Here are some things you need to know about Medicare's drug coverage:
- Anyone on Medicare can join a Medicare-approved drug plan. No one can be denied for health reasons or level of income.
- There is no single Medicare drug plan offering the same coverage for everyone. Instead, Medicare has approved a variety of different plans offered by private companies.
To get drug coverage, you must enroll in one of these drug plans.
You are not required to sign up for Medicare's prescription drug coverage if you don't want to — this coverage is voluntary. But if you do sign up, you will want to choose a plan that meets your needs.
You can learn more about Medicare's drug coverage and how to choose a plan that is right for you in AARP's educational guide, What You Need to Know: The New Medicare Prescription Drug Coverage.
Extra Help for People with Limited Incomes
If your income and assets are limited, there is a special part of Medicare's new drug program that may provide you with even greater help in paying for your prescription drugs. This is often called simply, "Extra Help." Here are some things you need to know about this Extra Help right away:
- If you qualify for Extra Help, Medicare will pay almost all of your drug costs and you will receive unlimited coverage throughout the year.
- Whether you qualify for Extra Help depends on the amount of your income and the value of some of the things you own or have saved (known as assets).
- To find out if you qualify for Extra Help, you will need to apply to the Social Security Administration or to a Medicaid office. Social Security or your state Medicaid program will determine if you qualify for the Extra Help. Your state Medicaid office will know if there are additional programs in your state to help you pay for your prescription drugs.
- Even if you don't qualify for Extra Help, you can still join a Medicare drug plan, which will pay some of your prescription drug costs.
This document explains:
- The value of the Extra Help — what you pay and what benefits you receive.
- Who is eligible for the Extra Help.
- How to apply for the Extra Help.
- What to do if Social Security says you are not eligible for Extra Help.
- How the Extra Help fits in with other government assistance programs.
- Who can help you apply for the Extra Help, or answer other questions you may have.
You will also find worksheets that can help you determine your income and assets. This information will be useful to you when you are applying for the Extra Help.
Note: If some of the terms used in this document are unfamiliar, refer to the glossary in this document.
