Prescription drug benefit sign-up lagging

Although low-income seniors can qualify for discounts that can provide substantial savings when Medicare’s new prescription drug program begins next year, so far, few have signed up.

This concerns local senior organizations and volunteers, some of whom worry that last-minute sign-ups could create confusion and a national log jam.

“To date, the rate of return has been fairly slow,” said Mike Manley, an administrator who oversees aging issues for Snohomish County’s human services department.

The applications for low-income discounts are being sent out by the Social Security Administration. The mailings began in June and continued through August.

Seniors 65 and older may qualify for discounts in monthly premiums and the annual deductible when Medicare’s new prescription drug program takes effect early next year.

A community information meeting has been scheduled over the next six weeks to help seniors make decisions on Medicare prescription drug issues (see story above).

To qualify for the biggest subsidy, a single senior’s annual income cannot be more than $12,919, and a couple’s annual income can’t exceed $17,320. There are restrictions on assets as well.

Partial discounts are available for single seniors whose annual incomes are less than $14,355, or couples whose incomes don’t exceed $19,245.

For those who qualify, the savings can be substantial; seniors could save as much as 83 percent in out-of-pocket drug costs next year, according to the Kaiser Family Foundation, which studies health care issues.

Of the 18.6 million applications being sent out nationally by the Social Security Administration, only about 250,000 had been returned as of early June, Manley said, the latest available numbers.

No information is available on the number of applications returned from Snohomish County or Washington, he said. Locally, about 15,000 seniors are receiving applications.

Seniors seem to be taking a wait-and-see attitude to Medicare’s new prescription drug plan and more specifically to the low-income discount, Manley said.

Mim Edelstein, who works on an advisory committee of the South County Senior Center in Edmonds, said she’s heard that some seniors think the low-income subsidy application is simply an ad.

“I said ‘No, fill it out and send it in. It might save you money.

“There are a lot of things that come in the mail that say Medicare in big letters,” she said. “If you look at them, they don’t come from (Medicare) at all. They come from an insurance company or something.”

The application comes in a Social Security envelope with a note signed by Jo Anne Barnhart, the agency’s top administrator, said Dan Ferrell, regional communications director for the Social Security Administration. “To me, that seems awfully legitimate.”

If there’s a chance people think they’re eligible for the discount, “we suggest they fill them out and get a decision early,” he said. “Then in the fall, they’ll know how much extra help they have to go shopping for the new prescription drug program.”

The low-income subsidies are just part of a sweeping national change in helping them pay for prescription drugs next year, replacing the current discount drug-card programs.

For the first time, Medicare will help seniors pay for prescription medication outside of hospitals. Seniors must sign up separately to qualify for the new prescription program, known as Medicare Part D. Signups begin Nov. 15.

Manley said he’s concerned that seniors who qualify for the low-income subsidy may not realize that they also have to submit separate paperwork to sign up for the prescription drug plan.

“People are just beginning to struggle with the idea that it’s a two-step process,” he said. “If they do one and not the other, they’re not going to be getting what benefits they should.

“This is going to require a lot of persistence to keep pushing, pushing, pushing,” he added. “People will have to hear the message repeated times.”

Sharon Salyer is a reporter with The Herald in Everett.