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The Honolulu Advertiser
Posted on: Friday, July 15, 2005

Drug-price break awaits seniors

By Rick Daysog
Advertiser Staff Writer

PROGRAM DETAILSWhat: New Medicare program offers prescription drugs for as little as $5 a bottle. When: Enrollment begins Nov. 15 and coverage starts Jan. 1. Who qualifies: Individuals over 65 who earn less than $16,515 a year; couples who earn less than $22,140. For information: Call SagePlus at 586-7299.
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Federal officials have mailed notifications to nearly 100,000 Hawai'i residents as part of a nationwide campaign to alert low-income seniors who may qualify for a new Medicare program that offers prescription drugs for as little as $5 a bottle.

The Social Security Administration is midway through a massive letter campaign to contact as many as 18.6 million individuals nationwide.

"We want to make sure we're not missing anybody," said Barbara Kim Stanton, state director of the seniors advocate group AARP, one of several local agencies that are working with the federal and state governments to reach seniors in Hawai'i.

The new Medicare prescription drug program pays between 85 percent and 98 percent of the drug costs for eligible seniors, who must fill out a four-page application and meet strict income and savings requirements to qualify.

Enrollment in the new Medicare drug plan begins Nov. 15 and coverage starts Jan. 1, 2005.

Mary Rydell, Pacific area representative for the Centers for Medicare and Medicaid Services, said it's hard to tell how many of the 100,000 letter recipients in Hawai'i will end up qualifying for the new benefit but she said the response so far has been good.

In April, the government received 38 responses when it sent out a sample mailing to 50 residences in Nu'uanu and Kalihi, said Rydell, whose office oversees the federal Medicare program and provides funding for the state Medicaid program.

Medicare officials on the Mainland have estimated that as much as one out of every three of the nation's 43 million Medicare beneficiaries could be eligible for the new program.

The 18.6 million letters that the government is sending out nationwide is an oversampling effort designed to get the attention of only 7 million people. That's the number of low-income seniors who would qualify for the new benefit and who aren't already getting health insurance and prescription drug help from Medicaid.

"It is an incredibly valuable benefit for them," said Jim Firman, president of the National Council on the Aging. "It's feasible to find and enroll most of these people. It's going to take time and effort."

Firman's organization commissioned a study that concluded it costs at least $50 to find and enroll each low-income senior in the new drug benefit subsidy. That means the outreach program alone could cost at least $350 million.

Other government assistance programs have not been as successful in signing up individuals who qualify.

Historically, only about 30 percent of U.S. seniors eligible for food stamps participate in the program.

The Medicare discount drug card unveiled last year offered a one-time $600 cash benefit for low-income beneficiaries. Yet, the program saw lower-than-expected participation rates.

The new program is restricted to individuals over 65 who earn less than $16,515 a year and couples over 65 who earn less than $22,140 a year. Participants also can't own more than $11,500 in savings, stocks, bonds, life insurance and other liquid assets and couples must have less than $23,000 in liquid assets, Rydell said.

Hard assets such as primary residences and cars aren't included in the calculations, she said.

What: New Medicare program offers prescription drugs for as little as $5 a bottle.

When: Enrollment begins Nov. 15 and coverage starts Jan. 1.

Who qualifies: Individuals over 65 who earn less than $16,515 a year; couples who earn less than $22,140.

For information: Call SagePlus at 586-7299.