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8 ways to cut your prescription drug costs
But prescription drugs – and drug coverage – can be less expensive if you're willing to do a little research and to reach out for help. Here are eight strategies that will empower you to take control of your drug coverage and your medication costs.
How Medicaid supports 1 in 5 Medicare enrollees
In 2016, an estimated 11.7 million Medicare beneficiaries – about 20 percent of all enrollees – were also enrolled in Medicaid and are known as dual-eligible beneficiaries or dual-eligibles. And while you might not hear that term often – or at all – it's worth your time to understand what it means to have both Medicare and Medicaid (especially if you or a loved one is part of the "Medicare-Medicaid" population).
Can recent immigrants to the United States get health coverage if they’re over 65?
Question: We would like our 80-year-old grandmother to come to the USA and live with us so we can take care of her. How do we get health insurance for her?
Making Medicare work for the poorest Americans
There are three main ways for lower-income Medicare beneficiaries to cover out of-pocket-costs when they can't afford to purchase a Medigap supplemental plan or a Medicare Advantage policy.
Q: How do I qualify for Medicare’s Extra Help Program?
A: Lower-income Medicare beneficiaries may receive financial assistance through Medicare’s Extra Help program. If you have difficulty paying for prescriptions, the Extra Help program – also known as the Low-Income Subsidy (LIS) – can make prescriptions and plan premiums more affordable than they would be with Medicare Part D alone.
Your income and resources determine the level of help you receive. You’ll automatically receive Extra Help if you have both Medicare and Medicaid, a Medicare Savings Program, or Supplemental Security Income, or Medicare only but also a limited income (note that the levels of Extra Help are different depending on your eligibility category).
To be eligible for Extra Help, your income in 2022 cannot exceed $20,385 for an individual or $27,465 for a married couple living together. In addition, resources must not exceed $15,510 for an individual and $30,950 for married couples (the financial limits are higher if you have dependents living with you, or if you live in Alaska or Hawaii).
Those are the income and resource limits for partial Extra Help; the limits for full Extra Help are lower. But starting in 2024, under the Inflation Reduction Act, full Extra Help will be available up to the limits that currently apply to partial Extra Help (the dollar amounts are inflation-adjusted each year, so they will be different by 2024). For full Extra Help, the current cap is 150% of the poverty level, while the cap for partial Extra Help is 150% of the poverty level. As of 2024, full Extra Help will be available up to 150% of the poverty level. And the higher resource limits that apply to partial Extra Help will also be used to determine eligibility for full Extra Help as of 2024.
Resources do not include your car or home, but do include stocks, bonds, and bank accounts. A recent law excludes some additional resources, making it easier for more beneficiaries to get Extra Help: life insurance policies don’t count as resources, and financial assistance you receive from friends or relatives to help pay your household expenses is not considered income. (The Social Security Administration has more details about what does and doesn’t count as resources).
Enrollees who receive full Extra Help in 2022 will pay no more than $3.95 for each generic drug and $9.85 for brand-name drugs. This is a valuable benefit that the Social Security Administration estimates is worth an average of about $5,000 per year. For Extra Help enrollees with lower incomes who are also enrolled in Medicaid, copays are limited to $1.35 for generics and $4.00 for brand name drugs.
In addition to having lower copayments, Extra Help enrollees also have their Part D plan deductibles reduced or eliminated altogether (depending on their income). The federal government also pays Part D premiums on behalf of Extra Help enrollees – up to a benchmark amount (this amount is different in each state; you can see which plans have zero premiums in your state for Extra Help enrollees), and eliminates the Part D late enrollment penalty for beneficiaries who would otherwise have to pay it.
Some beneficiaries, with income on the higher end of the eligible range, receive partial Extra Help, which reduces — but does not fully cover — the premiums and deductible for Part D. Partial Extra Help also reduces other out-of-pocket costs under Part D, but not as much as full Extra Help. As noted above, these beneficiaries will be eligible for full Extra Help as of 2024, under the terms of the Inflation Reduction Act.
Louise Norris is an individual health insurance broker who has been writing about health insurance and health reform since 2006. She has written dozens of opinions and educational pieces about the Affordable Care Act for healthinsurance.org. Her state health exchange updates are regularly cited by media who cover health reform and by other health insurance experts.