Keeping the Pressure on Congress to Support Rx Drug Legislation

By: Source: AARP.org Date Posted: 2007-05-21 16:40:48.246013-04:00

We all know that getting the right health coverage can be expensive. But for thousands of Americans living on $1,000 per month or less, getting any affordable coverage can be impossible without financial assistance. While Medicare's Extra Help was established to provide help, a staggering number of people have been determined ineligible for assistance due to asset tests.

Current asset tests penalize those who have saved money during their careers in order to have a sense of security when they retire.

According to Asclepios, the Medicare Rights Center, nearly half of the Extra Help applicants in 2006 were denied by Social Security because their assets were too high ($11,500 for an individual, $23,000 for a couple).

In addition, many applicants have also been excluded due to difficult application questions that ask for the cash value of their life insurance policies, medications and estimates on the monetary value of any "in-kind" help (pertaining to financial assistance from family or relatives).

AARP New Jersey staff and hundreds of volunteers and AARP chapter leaders have been meeting with Members of Congress in the Garden State to urge them to support strong legislation that will assist low-income individuals in obtaining subisdized prescription drug coverage under the Medicare prescription drug program.

The bill, HR 1536 or "The Prescription Coverage Now Act of 2007", would double asset limits to $27,500 for individuals and $55,000 for couples. It will also streamline the application process and authorizes the IRS to share information with the Social Security Administration, effectively cutting through a lengthy and complicated process. Further, the Act will create a special enrollment period and waive late enrollment penalties for subsidy eligible individuals.

Please call your members of Congress and ask them to support HR1536. Call 1-800-792-8630.

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