MIPPA Changes to Medicare Part D LIS

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Medicare Improvements for Patients and Providers
Act(MIPPA) MIPPA Changes to the Medicare
Part D Limited Income Subsidy (LIS)Congressiona
l BriefingCalifornia District 6 through District
16December 7, 2009
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Changes in the law
could make more people eligible
for the
Medicare Part D Limited Income Subsidy
(LIS) in 2010
What you need to know
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What is LIS or Extra Help

• Medicare beneficiaries can choose to enroll in a
  Medicare Part D Prescription Drug Plan
• People with limited income and resources may be
  eligible for the Medicare Part D Limited Income
  Subsidy (LIS), also known as Extra Help
• LIS helps pay monthly premiums, annual
  deductibles, and prescription co-payments related
  to a Medicare Part D Prescription Drug Plan.
• LIS or Extra Help is estimated to be worth an
  average of 3,900 per year.
• Many people qualify for these big savings and
  don't even know it.

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MIPPA Makes it Easier to Qualify for LIS Extra
Help in 2010

• New law goes into effect January 1, 2010
• Two major changes
  1) Some things will no longer count as
  resources or income
• 2) Application for LIS Extra Help is also an
  application for Medicare Savings Plan (MSP)

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Resources and Income Changes for 2010

• Life insurance will no longer count as a
  resource
• Help received from someone else to pay for
  household expenses will no longer count as
  income. Examples
• Food
• Mortgage payment or rent
• Utilities heating fuel or gas, electricity,
  water
• Property taxes

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What are the limits to qualify for LIS Extra
Help?

• For 2009 and 2010
• Resources limited to 12,510 for individuals,
  25,010 for married couples living together
• Income limited to 16,245 for individuals,
  21,855 for married couples living together

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Apply now?

• If current total resources income are below
  eligibility limits Apply now
• If current total resources income are above
  eligibility limits because of life insurance
  and household assistance
• Apply on or after January 1, 2010

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Why wait to apply?

• If life insurance or household assistance puts
  an applicant over the eligibility limits, they
  will not qualify until the new law is
  effective
• If an applicant is over the eligibility limits
  in 2009 and applies before January 1, 2010, they
  will be denied and will have to apply again

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What else does the new law say?

• Beginning January 1, 2010, the Extra Help
  application can also start the application
  process for the Medicare Savings Programs (MSP)
• Social Security will send information to the
  state unless the applicant tells us not to on the
  Extra Help application
• The state will contact the applicant to help
  complete the MSP application

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Advantages of the Medicare Savings Programs

• Helps pay for Medicare Part B (medical
  insurance) premiums

• For some, it may help pay for Part A
  (hospital insurance) premiums, and Part A
  Part B deductibles and co-payments

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How do I apply for Extra Help?

• Complete the Application for Extra Help with
  Prescription Drug Plan Costs (SSA-1020)
• Apply online at www.socialsecurity.gov
• Call Social Security to apply over the phone or
  request an application at 1-800-772-1213 (TTY
  1-800-325-0778)
• Apply at local Social Security office
• Obtain assistance from HICAP by calling
  1-800-434-0222 for an appointment.
• Social Security will review application and send
  a letter to let the applicant know if they
  qualify

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Why apply online?

• Step-by-step help screens guide you through
  questions
• Apply from any computer at own pace
• Start and stop at any timereturn later to
  finish
• A relative, friend or caregiver can help
• Online application is safe and secure

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Choosing a Medicare prescription drug plan

• Choose a Medicare Prescription Drug Plan,
  regardless of whether qualified for Extra Help
  (applying for Extra Help and a plan are two
  separate steps!)
• If qualify for Extra Help and do not select a
  plan, the Centers for Medicare Medicaid
  Services will select one for the beneficiary
• If beneficiary prefers another plan, they can
  change plans
• The sooner they join a plan, the sooner they
  receive benefits

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Need more information about Extra Help?
Visit www.socialsecurity.gov orCall Social
Security at 1-800-772-1213(TTY 1-800-325-0778)
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www.socialsecurity.gov
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www.socialsecurity.gov
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www.socialsecurity.gov/pubs/1059.htm
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www.socialsecurity.gov
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www.socialsecurity.gov
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Ask a Question
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www.socialsecurity.gov
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www.medicare.gov/Publications/Pubs/pdf/10126.pdf
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www.medicare.gov/Publications/Pubs/pdf/10126.pdf
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California State SHIP is HICAP 1-800-434-0222
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More information about Limited Income Subsidy
(LIS) and MIPPA Changes to LIS
Extra Help LIS Factsheet http//www.socialse
curity.gov/pubs/10509.htm MIPPA LIS
Factsheet http//www.socialsecurity.gov/pubs/1004
0.html Watch a Social Security webinar
explaining MIPPA changes to LIS
http//msite.yorkmedia.com/yorkcast/Viewer/?peid
6545384ab72c490fb79c2b7c51a68d88
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Need more information about Medicare?
For information on Medicare Savings Programs,
enrolling in specific drug plan, or to get the
Medicare You, 2009 handbook Visit
www.medicare.gov or Call 1-800-MEDICARE
(1-800-633-4227, TTY 1-877-486-2048)
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Questions ? www.socialsecurity.gov