Extra Help for People with Limited Incomes: Medicare Prescription Drug Coverage
Do I Qualify for Extra Help To Pay for My Prescription Drugs?
It depends on your income and assets.
In general, you may qualify if your 2007 income is below $15,315 a year as a single person or below $20,535 a year if you're married and living with your spouse. But in some cases, a higher income may qualify — for example, if you live in Alaska or Hawaii, or if you have dependent family members living with you. People living in Puerto Rico and the U.S. territories will receive different assistance. Contact your local State Health Insurance Assistance Program (SHIP) to learn more. Also, see Where Can I Go for More Help?
Your assets — the value of some of the things you own or have saved — are also considered when determining if you can receive the Extra Help.
What counts as "income"?
Income includes money you receive from Social Security, a job, retirement benefits, veterans' benefits, and interest from investments. Not all cash payments you receive are counted, however. For example, the following payments are not counted as income:
- Food stamp assistance
- Home energy assistance
- Help with medical treatment or drugs
- Housing assistance
- Disaster assistance
- Earned income tax credit payments
- Victim's compensation
- Scholarships and education grants
- Cash or credit from a reverse mortgage
What counts as "assets"?
Your total assets generally must be valued at less than $11,710 if you are single or $23,410 if you are married and living with your spouse. Assets include the value of some of the things you own at the time you apply for Extra Help. For example:
- Real estate (not including the house you live in)
- Bank accounts, including checking, savings and certificates of deposit
- Stocks and bonds (including U.S. Savings Bonds)
- Mutual funds
- Individual retirement accounts
- Cash you keep at home or anywhere else
There are some exceptions, however. For example, the asset limits include $1,500 per person for funeral or burial expenses. When you fill out the application form, it will ask you if you expect to use any of your savings, investments or life insurance for this purpose. If you answer "yes," then Social Security will not count $1,500 as an asset.
Things you own that are not counted as assets include:
- The house you live in and the land it stands on
- Your personal possessions (including jewelry and furniture)
- Your vehicles
- Burial plots
- Up to $1,500 ($3,000 for a couple) of the cash value of life insurance policies you hold
To help you determine your income and assets, use the Income Worksheet and the Assets Worksheet in this document.
This information will be useful later when you apply with the Social Security Administration or Medicaid office for the Extra Help.
