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Officials explain new drug benefits

Seniors were told how to apply for financial assistance to pay the premiums in the new Medicare prescription drug plan.

By RAGHURAM VADAREVU
Published August 24, 2005

BEVERLY HILLS - Low-income seniors were urged Tuesday to apply to the Social Security Administration for financial help to pay the premiums for the new Medicare prescription drug benefit.

Appearing at an informational session on the drug plan at a packed Civic Center, Social Security representatives and U.S. Rep. Ginny Brown-Waite guided seniors through the financial assistance application and took questions about the drug plan.

Starting in November, seniors nationwide will be able to begin enrolling in the new drug plan.

"This is a voluntary program. You don't have to sign up," said Richard Lytle, the district manager of the Social Security office in Ocala.

Seniors who already have drug coverage through their employer do not have to enroll in the new drug plan, he said.

The new drug benefit will begin in January.

Seniors who have been using the discount drug cards introduced last year to bridge the gap until the drug benefit starts in January can toss the cards and receive benefits through the new drug plan, Lytle said.

Officials at Brown-Waite's office, which organized the session, said that they will organize town hall meetings later in the year to fully explain the specifics of the new drug plan, including the types of drugs that will be covered, among other details.

Medicare officials had not released that information yet, they said.

Lytle did have some details about the new plan.

Seniors can expect to pay between $32 and $37 per month in premiums, Lytle said.

There will be a $250 deductible, meaning that seniors would be responsible for the first $250 in drug costs per year, he said. After a senior spends $250, Medicare would cover 75 percent of the drug costs up to $2,250, he said.

The primary purpose of Tuesday's meeting was to discuss the financial assistance available to help low-income seniors pay the premiums.

Lytle said low-income seniors need only fill out a four-page application. He urged them to get help from family or friends if they need it and to complete the application and submit it before the January start of the drug plan.

Information can be found on the Medicare Web site, www.medicare.gov and by calling, 24 hours a day, 1-800-633-4227 Helpful reminder: It's 1-800-MEDICARE.

To be eligible for the assistance, single seniors should have less than $11,500 in financial resources, he said. If seniors are married, they should have less than $23,000 in financial resources.

Even if seniors don't fit this financial category, Lytle said, they should apply.

Lytle said seniors who are already receiving drug coverage through their employers should apply even if their financial resources are greater than the $11,500 for singles or $23,000 for married couples.

Lytle said those seniors would likely be denied the financial help but would need the denial letter to show their employers that they are not eligible for financial help.

Brown-Waite, R-Crystal River, said that a senior has 90 days to enroll in the drug benefit plan without penalty if their employer decides to drop them from drug coverage or if the employer goes bankrupt.

If seniors find themselves in that situation, she said, they should promptly apply for the drug coverage.

"You don't want to be one day without coverage," Brown-Waite said.

There will be a similar informational session from 1:30 to 3:30 p.m. Monday at the Senior Center, 7925 Rhanbuoy Road, Spring Hill.

Raghuram Vadarevu can be reached at rvadarevu@sptimes.com or 352 564-3627.

[Last modified August 24, 2005, 01:15:20]