Extra Help for People with Limited Incomes: The New Medicare Prescription Drug Coverage
By: Source: AARP.org Date Posted: 2006-07-26 10:40:05.966265-04:00
Answers to Other Questions About Extra Help
I currently use the Medicare-approved discount drug card. Should I still apply for Extra Help?
Yes. The new, better Medicare prescription drug program is replacing the discount card and takes effect on January 1, 2006. The discount cards only offered reduced prices on prescription drugs, but Extra Help and Medicare's new drug coverage is insurance. You can still use your discount card until May 15, 2006 or until your new Medicare prescription drug coverage begins, whichever comes first.
I currently get free or low-cost drugs from a drug company or from TogetherRx. Should I still apply for the Extra Help?
Yes. The Medicare drug program covers drugs that the drug company discount cards don't, if you should need other drugs in the future. The TogetherRx card cannot be used after December 31, 2005, and some drug manufacturers may also discontinue their patient assistance programs for people on Medicare after that date. Others may continue their programs and you may still be able to get drugs from them after you start receiving drugs from Medicare. Call the manufacturer's program to find out.
I buy my prescription drugs at a discount pharmacy. Should I still apply for the Extra Help?
Yes. If you qualify for the Extra Help, the value of the assistance you get from a Medicare-approved drug plan will be much greater than the discount you get now. Still, when choosing your Medicare drug plan, you should consider one that is accepted at your drugstore.
My Medigap insurance (also called Medicare Supplemental Insurance) currently pays for most of my prescription drugs. Should I still apply for Extra Help?
Yes. No Medigap drug coverage is as good as Medicare's Extra Help, so you will save money if you qualify for the Extra Help. Once you join a new Medicare drug plan, you will be able to drop the drug coverage from your Medigap insurance, which may also save you money and let you keep your current Medigap insurance to cover your other health costs. Or you can switch to another Medigap plan that does not cover prescription drugs. Your Medigap insurer will be notifying you this fall of your options for prescription drug coverage. See AARP's factsheet, Medicare Rx Drug Coverage: More Information for People with Medigap.
I am already in a Medicare HMO or PPO. Should I still apply for Extra Help?
Yes. But make sure that your plan will provide drug coverage in 2006. If it doesn't, you should look for another plan that does cover drugs so that you can get Extra Help. Even if your current plan includes drugs, make sure it will cover those you need in 2006 — and, if not, consider switching to another plan.
My employer, union, the Veterans Affairs, or the military now pays for most of my prescription drugs. Should I still apply for Extra Help?
Maybe. This fall your employer or union must send you a letter explaining whether your current drug coverage is better or worse than Medicare's. Even if your coverage is better than the standard Medicare benefit, Extra Help may be even better as long as you qualify. In this case, ask your current provider for advice on what to do. If you drop your current coverage, you may not be able to get it back. The same applies if you now receive low-cost drug coverage from the military retirees' TriCare For Life program (which also covers dependent relatives) or from Veterans Affairs.
How will the new Medicare prescription drug program affect my Food Stamps and my government housing assistance?
- Housing assistance - If you join the new Medicare drug program, you will not lose your housing assistance. However, the amount you pay for your housing may go up. But you should still apply for the Medicare drug program — the money you save on your drug costs will be much greater than your increase in housing costs.
- Food stamps - If you join the new drug program, you may lose your Food Stamps or the amount of your food stamps may go down. However, you should still apply for the Extra Help because the money you save on drug costs will be much greater than the amount of Food Stamps you lose.
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