Medicare Prescription Drug Extra Help Program
Prescription Drug Extra Help (also called Low Income Subsidy) is a program that Social Security uses to help low-income earners with Medicare cover their Medicare prescription drug costs. The help they render can be related to annual deductibles, monthly premiums, and prescription co-payments related to a Medicare prescription drug plan. One thing to know is that the Extra help is worth approximately $5,000 per annum, which is huge for most low-income earners.
However, the questions remain; who qualifies for this? Where can those that are eligible apply? What does this mean for those that are eligible? These are some of the questions that we will be answering in this article. In the end, you would have learned a lot about the Prescription Drug Extra Help program.
Who Qualifies for Prescription Drug Extra Help?
There are some criteria to meet before qualifying for the Prescription Drug Extra Help. The first one is that they must be living in the United States of America or the District of Columbia. Secondly, the individual must have Medicare Part A (Hospital Insurance), Medicare Part B (Medical Insurance), or both. Furthermore, the person or persons' resources and income must not exceed the limits.
The resource limit to qualify for Prescription Drug Extra Help in 2021 is $14,790 and $29,520 for individuals and married couples living together, respectively. Resources in this instance are referred to as things or assets an individual owns. Some of these include real estate excluding primary residence, stocks, bonds, mutual funds, personal cash, bank accounts, and Individual Retirement Accounts. The total value of these is what is known as RESOURCES.
However, some things do not count as Resources. Some of these include vehicles, the primary home of residence, furniture, life insurance policies, etc.
The income limit needed to qualify for Prescription Drug Extra Help is an annual income of $19,320 and $26,130 for individuals and married couples living together, respectively. However, there are some cases where even if your income is higher than the limit, you can still qualify for the Prescription Drug Extra Help. Examples of these situations are living in either Alaska or Hawaii or supporting a family member living with you financially.
Besides, it would help if you remembered that not every income or cash receipt counts towards the income limit. Examples of cash payments that do not count are:
· Educational grants or scholarships