HOUSE HEALTH CARE LEGISLATION ADDS IMPROVEMENTS TO MEDICARE LOW-INCOME PROGRAMS

from MEDICARE WATCH, a biweekly electronic newsletter of the Medicare Rights Center People with Medicare would gain new access to low-income programs in H.R.3200, America’s Affordable Health Care Act of 2009, which was introduced by senior Democratic leaders in the House this month. Among other provisions, the legislation would increase access to Medicare Savings Programs (MSPs) and Extra Help, which help pay medical and prescription drug costs for people with Medicare who live below, or just above, the federal poverty level ($10,830 for an individual/$14,570 for a couple in 2009). The legislation would raise the asset limit for people with Medicare to be eligible to receive Extra Help to $17,000 for an individual/$34,000 for a couple. This is the same limit that determines eligibility for MSPs, and is an increase from $12,510/$25,010 in 2009 for Extra Help. The discussion draft of the legislation included a measure that would have made unnecessary for people who are enrolled in Extra Help to recertify each year. This provision was left out of the final version of the bill; CBO had estimated the provision would cost $25 billion. The total cost for raising the asset limit and making other improvements to low-income programs is now estimated at $11.9 billion over ten years. The bill also extends the Qualified Individual (QI) program, which pays Part B premiums for individuals earning between 120 percent and 135 percent of the federal poverty level, for two years, at a cost of $1.4 billion. The program is now set to expire in December 2010. This is a change from the draft language of the legislation, in which the QI program would have been extended indefinitely.