MEDICARE PROPOSAL DENIES MUCH-NEEDED HELP TO 2.8 MILLION LOWEST-INCOME SENIORS

Ron Pollack, Executive Director of Families USA, released the following statement today regarding the assets test in the Medicare proposal that will soon be acted upon in the Senate and House of Representatives:

"The pending Medicare proposal includes an assets test that denies crucial drug subsidies to 2.8 million very low-income seniors if they have even a small amount of assets. As a result, many of America's poorest seniors will be unable to afford their medicines.

"Included in the assets test calculation that would disqualify a low-income senior from needed drug subsidies are:

• Household goods and personal effects that exceed $2,000;
• Funds set aside for burial expenses that exceed $1,500; and
• Life insurance valued in excess of $1,500.

"Under the bill, the largest subsidies would be provided to seniors with incomes below 135 percent of poverty ($12,123 in annual income) - but that help is denied to seniors with assets above $6,000. Considerably fewer subsidies are provided to seniors with incomes up to 150 percent of poverty ($13,470) - but even that help is withheld from seniors with more than $10,000 in assets.

"Unlike the original Senate Medicare bill, this proposal denies low-income seniors with meager assets from receiving the help they need to pay for their medicines.

"As a result of the proposal, approximately 834,000 seniors with incomes below the poverty line ($8,980 per year of income) will be denied much-needed help. Another 1,226,000 seniors with incomes between the poverty line and 135 percent of poverty will be disqualified from receiving subsidies. And yet another 723,000 seniors with incomes below 150 percent of poverty will be denied.

"In total, approximately 2.8 million low-income seniors - the people most in need of assistance - will lose the help they need to make prescriptions affordable. This assets test should be removed before Congress acts on this legislation."

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Families USA is the national organization for health care consumers. It is nonprofit and nonpartisan and advocates for high-quality, affordable health care for all Americans.

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202-628-3030 · Email: info@familiesusa.org · www.familiesusa.org