Posted on: Thursday, December 16, 2004
Seniors: 15 days left to get $600 free
By Catherine E. Toth
Advertiser Staff Writer
Thousands of low-income seniors in Hawai'i may miss out on a $600 drug credit if they don't act fast.
The deadline to get the new Medicare benefit is Dec. 31.
"This really is like free money in your pocket," said Mary Rydell, local representative for the federal Centers for Medicare and Medicaid Services.
The drug credit is part of Medicare's drug discount card program launched this year, which offers discounts on costly prescription drugs to seniors. Nearly everyone with Medicare can get the discount card, and those with limited income get the extra $600 credit.
In Hawai'i, the credit is available to single Medicare beneficiaries whose yearly income falls below $14,445 and to married couples whose income is $19,386 or less. Income is the only test. Assets, such as a home or savings account, are not part of the eligibility requirement.
Eligible seniors get a $600 credit this year and another $600 next year. If you don't spend the $600 credit for this year, it rolls over, combining for a total of $1,200 toward prescription drugs.
Medicare estimates more than 33,000 Hawai'i residents may qualify for this drug credit. Only a fraction — perhaps less than 20 percent — have signed up.
Nationwide, about 7 million elderly and disabled Medicare beneficiaries qualify. So far, only 1.6 million have taken advantage of the deal. "Even if you don't think you may be eligible, you should find out," said Rydell.
On average, Medicare beneficiaries spend about $500 a month on prescription drugs before discounts.
Medicare's drug discount card and credit program hasn't lured as many seniors as hoped, mostly due to difficulties in getting the message out.
According to a recent survey, one in five Americans aged 55 and older say they don't have even a fair amount of knowledge about the new Medicare prescription drug credit benefit.
Deadline is Dec. 31 for the $600 drug credit for seniors.
To apply:
Web: www.medicare.gov The low enrollment has prompted a last-ditch effort by various organizations to get the word out about the drug credit as the deadline approaches.
Sage PLUS, a state-run health insurance counseling program, is offering free help to seniors who want to apply for the discount drug card or the credit program. Volunteers will fill out the paperwork for seniors in person or over the phone and enroll qualified seniors.
"Nationwide, enrollment has been pretty slow," said Pamela Cunningham, program specialist at Sage PLUS. "What we're trying to do is encourage people to sign up as soon as possible. Basically, it won't cost them a thing."
Seniors who qualify for the $600 credit will receive a discount drug card, which offers discounts of between 15 percent and 25 percent on brand-name prescription drugs — more for generic versions. Depending on their income, seniors will pay between 5 percent and 10 percent of the cost after the discount as a co-payment. The rest of the cost will be deducted from the $600 credit.
That means if a prescription drug costs $100 after the drug-card discount, a qualified low-income senior will pay only $5 for the medication. The remaining $95 will be deducted from the $600 credit.
"It's really such a good deal," Rydell said.
Medicare will only offer this drug credit through 2005. Its new prescription drug program — the rules of which won't be released until next month — will begin Jan. 1, 2006.
Reach Catherine E. Toth at 535-8103 or ctoth@honoluluadvertiser.com.
The weak response may be because of an intimidating questionnaire seniors have to fill out and a confusing system of applying for drug discount cards. For example, there are 39 different cards available to Hawai'i residents, each with distinct discounts and requiring different co-payments or annual fees. There is no fee for the card for people who qualify for the $600 benefit.
Medicare drug credit
Call: Sage PLUS at 586-7299 or (888) 875-9229, or Medicare at (800) MEDICARE.
