Social Security Administration Warns 76,000 Beneficiaries
of Drug Subsidy Loss


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Volume 13 Number 52
ISSN 1091-4021
Tuesday, March 18, 2008

News: Part D Drug Benefit

The Social Security Administration has advised about 76,000 Medicare Part D beneficiaries they will lose their low-income status in March because they did not respond to requests for information that verified their program eligibility.

Beneficiaries were notified that although they no longer were eligible for the LIS program, they remained enrolled in their Part D plans, meaning they would be responsible for a greater share of the cost.

An SSA spokesman told BNA March 14 that the letters were sent only after several efforts were made to reach out to beneficiaries to obtain the eligibility information. The low-income subsidy program provides financial assistance at varying levels to poor beneficiaries enrolled in the Part D drug program.

SSA further told beneficiaries they could appeal the decision within 60 days to have their LIS eligibility reinstated, if they were indeed eligible. Beneficiaries also could appeal within 10 days of receiving the letter to avoid any interruption in their current status.

In a news release responding to the letters, a beneficiary advocacy group, the Center for Medicare Advocacy, noted that starting April 1, affected beneficiaries will have a special three-month election period in which they can enroll in new plans.

The letter is available on the Health Assistance Partnership website.



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