Medicare beneficiaries who have limited income and resources may qualify for extra help to pay for prescription drugs costs. This low-income subsidy from Medicare provides financial assistance for beneficiaries who have limited income and resources. Those who are eligible for this low-income subsidy will get help paying for their monthly premium, yearly deductible, prescription coinsurance and copayments and no gap in coverage.

Some people are automatically eligible for the low-income subsidy. Those include people who are: full benefit dual eligibles; SSI recipients with Medicare; Medicare Savings Programs participants.

Some people must apply through SSA. This includes Medicare beneficiaries with income below 150% FPL who meets an asset test—i.e.—beneficiaries who have a yearly income (in 2009) below $16,245 ($21,855 for a married person living with a spouse and no other dependents) and resources (in 2009) less than $12,510 ($25,010 for a married person living with a spouse and no other dependents). Resources include such things as bank accounts, stocks, and bonds, but not your house and car.

Your premium will generally be lower if you receive extra help from Medicare to help pay for your Medicare prescription drug plan costs. Many people are eligible for these savings and don’t even know it.

For more information about this Extra Help, contact your local Social Security office or call 1-800-MEDICARE (1-800-633-4227), 24 hours per day, 7 days per week. TTY users should call 1-877-486-2048.

If you have any questions, please call Member Services at 1-866-250-2005, (TTY/TDD: 1-866-763-9630) 24 hours a day, 7 days a week, 365 days a year.