When in doubt, apply anyway

KNIGHT RIDDER NEWSPAPERS
Q. My 84-year-old great aunt has no income except her monthly Social Security check, but she has what she calls a rainy-day savings account in case she gets really sick. Do you think she will qualify for the extra help under the Medicare drug benefit? --Trudy
A. It is hard to say whether your great aunt will qualify for the extra help under the Medicare drug benefit. However, if you think she may qualify, it is a good idea for her to apply. People on Medicare who qualify for low-income assistance can get significant help with their drug expenses under a Medicare drug plan.
The Medicare drug benefit is available to all people on Medicare -- without regard to their income. But, there is extra help available to people with low incomes and modest resources. To qualify for this additional assistance, an individual must have less than about $15,000 in annual income and less than $11,500 in resources (couples can have higher incomes and resources).
A house and car do not count toward the resource limit. However, stocks, bonds, checking and savings accounts, and retirement accounts do count as resources. So, if your great aunt has more than $11,500 in savings, she probably won't qualify for the extra help.
It would probably be a good idea for her to go ahead and apply for the low-income assistance if you think there is any chance she might qualify. For more information on applying, she can call the Social Security Administration at (800) 772-1213 or visit them online at www.ssa.gov. Alternatively, she can contact her state Medicaid office.
In addition, if she hasn't already signed up for a Medicare prescription drug plan, it would be a good idea to do so between now and May 15. If it turns out that she doesn't qualify for low-income assistance, there are still good reasons to be enrolled in a Medicare drug plan.
This column was prepared by the Kaiser Family Foundation, an independent, non-profit private foundation based in Menlo Park, Calif., not affiliated with the Kaiser Permanente health plan. Send questions about the new Medicare drug benefit to Medicare Q & amp;A, The Kaiser Family Foundation, 1330 G St., NW, Washington, DC 20005 or MedicareQ@kff.org.