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Medicare changes include potential cost relief

Medicare

By Suzanne Higgins

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February 9, 2010 · Medicare premiums have gone up in 2010 from $96.40 a month to $110.50.

But since Social Security recipients are not receiving a cost-of-living adjustment this year, most Social Security  payments won’t drop because of that increased Medicare premium.

 

“People who have Medicare and have a premium deducted from their Social Security check, the law allows that your check not be lower than it was in 2009 simply to collect that higher Medicare premium,” said Robert Jeffries, Public Affairs officer with Social Security.

 

“So most of the people on Medicare, like 93% of them, will see no change in their payments and they’ll continue to pay the old premium since there was no cost-of-living adjustment.” he said.

 

There are approximately 380,000 West Virginians on Medicare.

 

Jeffries says only seniors that have experienced an increase in income will not be protected from the increase in Medicare premiums.

 

Additional relief for Medicare beneficiaries is available because of changes in Social Security’s “Extra Help” program which helps pay Medicare prescription drug plan costs.

 

To qualify for extra help, people must meet certain resource and income limits.

 

Officials say it’s now easier to qualify.

 

“Previously we had to count the cash value of a life insurance policy as an income resource, and we also counted if you had help with paying your bills,” said Jeffries.

 

“But beginning January 2010, those two items will no longer be considered.”  

 

Social Security estimates a person can save up to $3900 a year on premiums, deductibles and co-pays through the program.

 

The income limit for a single person is $1354 a month, and $1821 a month for a married couple.

 

Resource limits are $12,510 for an individual and $25,010 for a married couple.

 

“The only things we look at for that resource limit is money that you have as cash in the bank, or if you have property other than where you live,” said Jeffries. “Otherwise the car you drive, the house you live in, those things do not count toward the resource limit.”

 

Approximately 81,000 West Virginians currently receive extra help for their Medicare prescription drugs through Social Security.

 

Jeffries advises Medicare recipients to contact their local Social Security office or visit their Web siteto see if they qualify for the extra help.

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