I helped my mom save $3,600 on prescription drugs

I helped my mom save $3,600 on prescription drugs.
You can too!

Social Security Administration
www.socialsecurity.gov

Do you know someone who needs help with prescription costs?

Now, you can help someone you care about apply for extra help with their Medicare prescription drug costs. Anyone who has Medicare can get Medicare Prescription Drug coverage. Extra help is available for some people with limited income and resources. It will pay for all or most of the monthly premiums and annual deductibles and lower the prescription co-payments related to their plan. The extra help could be worth up to $3,600 per year. Many people with limited income and resources qualify for these big savings and don’t even know it. To find out if someone is eligible, Social Security will need to know their income and the value of their savings, investments and real estate (other than their home). If they are married and living with their spouse, we will need this information for both of them.

To qualify for extra help they must have:

Income limited to $15,600 for an individual or $21,000 for a married couple living together.
Even if their annual income is higher, the ones you care about still may be able to get some help with monthly premiums, annual deductibles and prescription co-payments. Some examples where income may be higher include if they or their spouse:

Support other family members who live with them;
Have earnings from work; or
Live in Alaska or Hawaii; and

Resources limited to $11,990 for an individual or $23,970 for a married couple living together. Resources include such things as bank accounts, stocks and bonds. We do not count their house and car as resources.

Getting started

Social Security can give you an application you can complete to help Medicare beneficiaries apply for extra help. The worksheet can assist you in helping them complete the application for extra help. The worksheet is not an application.

Ask whoever you are helping to:

Identify the things they own alone, with their spouse or with someone else. They should not include their home, vehicles, burial plots or personal possessions.
Review all their income.
Gather their records in advance to save time.

A group of seniors Documents that will help you prepare in advance for anyone you are helping

Statements that show their account balances at banks, credit unions or other financial institutions;
Investment statements;
Life insurance policy statements;
Stock certificates;
Tax returns;
Pension award letters; and
Payroll slips.

State agencies may be able to help with Medicare costs

Medicare Savings Programs help people with limited income and resources pay for their Medicare expenses. If whoever you are helping pays a premium for Medicare Part A, the Medicare Savings Programs may pay it for them. The help they get from the Medicare Savings Programs can save them more than $1,100 a year.

If you think they might be able to get help from their State with Medicare costs, or if you are not sure, call their State medical assistance (Medicaid) office or call 1-800-MEDICARE (1-800-633-4227). TTY users should call 1-877-486-2048.

Resources	Value
Bank accounts, including checking, savings and certificates of deposit	$
Stocks, bonds, savings bonds, mutual funds, individual retirement accounts (IRAs) or other investments	$
Cash at home or anywhere else	$
Life insurance policies for applicant (and spouse, if married and living together)	$
NOTE: Social Security needs to know how much money the applicant or spouse would get if they cashed in their life insurance policies today. Ask them to check with their insurance company or agent to get the exact cash value. This probably will be less than the amount they are insured for.
Any real estate other than their home	$

Income	Monthly Amount
Social Security benefits	$
Railroad Retirement benefits	$
Veterans benefits	$
Other pensions or annuities	$
Alimony	$
Net rental income	$
Workers’ compensation	$
Other income	$
Help from other people to pay for household expenses, such as food, mortgage or rent, heating fuel or gas, electricity, water and property taxes	$
	Annual Amount
Wages	$
Net earnings from self-employment	$

How you can get more information

For more information about extra help with Medicare prescription drug plan costs, visit www.socialsecurity.gov or call Social Security at 1-800-772-1213 (TTY 1-800-325-0778).

You can help someone apply online for extra help at www.socialsecurity.gov. To help them apply by phone or get an application, call Social Security at 1-800-772-1213 (TTY 1-800-325-0778) and ask for the Application for Help with Medicare Prescription Drug Plan Costs (SSA-1020). Social Security representatives are available to help you complete the application.

To learn more about the Medicare prescription drug plans and special enrollment periods, visit www.medicare.gov or call 1-800-MEDICARE (1-800-633-4227; TTY 1-877-486-2048). Medicare also can tell you about agencies in your area that can help you with Medicare prescription drug plans.

Social Security Administration
SSA Publication No. 05-10163
April 2008

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