More Medicare beneficiaries will qualify for the Extra Help program and be eligible to pay no more than $2.50 for generic drugs and $6.30 for brand-name drugs. The relief will come through Medicare's Low-Income Subsidy Program, which takes effect this year.

The Centers for Medicare and Medicaid Services estimates that Extra Help can save eligible Medicare beneficiaries as much as $3,900 per year, and that more than 1.8 million people with Medicare are eligible for Extra Help but are not enrolled.

The changes alter the way income and assets are counted in 2010. When determining eligibility for Extra Help, the Social Security Administration will no longer count life insurance policies as a resource. In addition, help received from family and friends to pay for household expenses such as food, mortgage, rent, and utilities will no longer count as income.
If you were turned down for Extra Help previously, it is recommended that you reapply.

To qualify, a Medicare beneficiary's income must be less than $16,245 a year ($21,855 for married couples) with resources limited to $12,510 ($25,010 for married couples). Resources include bank accounts, stocks, and bonds, but do not include houses, cars, or life insurance policies.

There is no cost to apply for Extra Help. Visit www.socialsecurity.gov/prescriptionhelp or call Social Security at 800-772-1213 (TTY 800-325-0778) and ask for the Application for Help with Medicare Prescription Drug Plan Costs.

Medicare beneficiaries in Johnson County may also receive assistance through Senior Health Insurance Counseling for Kansas (SHICK) by calling 913-715-8856.

Most beneficiaries enrolled in a Part D plan whose income is too high to qualify for Extra Help but who enter the doughnut hole in 2010 will receive a one-time, tax-free rebate check of $250 to help with prescription drug costs, thanks to the Affordable Care Act. These $250 checks began to be mailed out to eligible beneficiaries in June and will be sent to beneficiaries soon after they enter the coverage gap.

The doughnut hole is the period in the prescription drug benefit in which beneficiaries generally pay 100 percent of the cost of their drugs until they hit catastrophic coverage. Beneficiaries who qualify for Medicare Extra Help do not have a doughnut hole.

To learn more about the Affordable Care Act and the new Medicare benefits, visit www.medicare.gov/Publications/Pubs/pdf/11467.pdf.

For more information on how to get your rebate check, visit www.medicare.gov/Publications/Pubs/pdf/11464.pdf.
To learn more about Medicare prescription drug coverage, visit www.medicare.gov or call 800-633-4227 (TTY 877-486-2048).