This is a column about gobbledygook; at least, it’s going to sound like gobbledygook.
In the interests of full disclosure, in which I’m only marginally interested, we ran this same column at about this time last year, except that these numbers are updated, and the reason that I’m putting you (and me!) through this is because this gobbledygook could save a lot of people, who could stand to save some serious money, some serious money.
This relates to people who are on Medicare, about to be on Medicare or care about people who are. If none of those apply to you, or if you’re income and assets are such that none of this gobbledygook applies to you, your instinct is going to be to stop reading and turn to something less taxing, like taxes – Please don’t.
I’m not saying “please don’t” because my ego is that fragile. I’m saying it because a lot of people who could be significantly affected by this stuff will never hear about it, so I have to rely on you to tell them, and maybe help them – Because you’re a decent human being, that’s why.
You’re probably going to have to read this several times – It took me several times to write it. If it still doesn’t make any sense, but you think it might touch you or yours, just call any of the numbers at the end of this column and decent human beings will help you, without making you feel like an idiot.
OK, ready? Here we go.
We’ve just survived the 2010 “open enrollment” (OK, “annual election period”) for Medicare Part D prescription drug coverage plans – It ran from November 15th through December 31st. You may have heard the acronym “LIS,” which stands for “Low Income Subsidy,” or the phrase “extra help,” which means exactly the same thing.
Folks who are eligible for Extra Help receive full or partial financial assistance, up to the “benchmark premium” (don’t worry about that right now), with their Part D premiums, deductibles and co-pays – That’s good! – And, in many cases, saves folks hundreds of bucks. To get this “Extra Help,” you have to be eligible for Part D, which means that you’re on Medicare Part A, Part B, or both.
Assuming any of those apply to you, then you have to qualify for Extra Help by virtue of your income and financial assets. If you’re single, is your income at or below $1, 219 per month? If you’re married, is your income at or below $1, 639 per month? You could even qualify for some partial assistance if you’re single and raking in $1,355 per month, or married and wallowing in $1, 821 per month. Maybe so? Good – We’re OK, so far. NOTE: Even if you’re income is a bit about above that, you may still qualify if you have earnings from a job or have other family living with you.
Now, assets: Single = $8,100 up to 12, 510, and if married = $12, 910 up to $25,010. “Assets” means pretty much what you’d think it means: bank accounts, stocks, bonds, IRAs, real estate, etc. It does NOT count your home, your car, your stuff, like jewelry, furniture, blah blah. Now here’s what changed on January 1, 2010:
- The cash surrender value of any life insurance policy is no longer counted as an asset;
- If someone else helps pay some household expenses (e.g. South Dakota son pays the rent or Delaware daughter pays the utilities), that is no longer counted as “income;”
So, if either of those things has DISqualified you for Extra Help in the past, they’ve gone away, so it’s worth your time to reapply – Now! You can do that by going to www.socialsecurity.gov where there’s a very straightforward online application, or as noted, call any of the numbers at the end of the column for help. There’s no “penalty” for reapplying, or for being “wrong;” in other words, when you’ve got nothing, you’ve got nothing to lose.
Did I say “penalty?” Listen: We’ve all heard of the dreaded Part D “penalty,” wherein if you didn’t sign-up for a Part D plan when you were first eligible, you get socked with 1% of the national base premium for every month that you diddled around, and it NEVER GOES AWAY, right? Well, if you qualify for this Extra Help, any “penalty” goes away!
Now, anyone who reads this column with any degree of regularity is probably pretty certain that I have my…disagreements with Medicare Part D; nonetheless, I see it do a lot of good for a lot of people and it beats-the-heck out of nothing!
I know what you’re thinking. You’re thinking, “Is this some of that ‘health care reform’ stuff?” No. This is right now and was going to happen, anyway, so if it applies to you or yours, jump on it!
The other thing you’re thinking is, “Well, that wasn’t so bad – I think I get it,” to which I say “Hallelujah!” Then we’re ready to move on to Gobbledygook Part 2, “Medicare Savings Programs,” which have radically changed and can really do some folks some serious good, but we’re going to have to do that next week, so I’ll meet you here next Thursday, and we’ll all want to have our seatbelts on.
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