Yes. If your monthly income is below $1,354 for singles ($1,822 for couples) and your assets are below specified limits (see chart below for details), you may be eligible for Extra Help, a federal program that helps you pay for some or most of the costs of Medicare prescription drug coverage.

Even if your income or assets are above the limit you may still qualify for Extra Help because certain types of income and assets may not be counted. For example, part of your earned income and your house will not be counted.

If you are enrolled in Medicaid, Supplemental Security Income (SSI) or a Medicare Savings Program (MSP), you automatically qualify for Extra Help. You do not have to apply for this extra assistance.

If you are not enrolled in one of the programs that automatically qualify you for Extra Help, you will have to fill out an application. You can do that through the Social Security Administration (SSA), using either the agency's print or online application, or at your local Medicaid office.

If you become eligible, you will get a Special Enrollment Period to enroll in a Medicare private drug plan. You will not have to pay a Part D premium penalty, even if you enroll in a Medicare private drug plan after you were first eligible.

For information about what happens if you already have Medicaid, click on the link in the GO TO box.

For more information on how to apply for Extra Help, click on the NEXT button.

To learn more about the Part D premium penalty, click on the link in the GO TO box.

Depending on your income and assets, you may qualify for either “full” or “partial” Extra Help. With either, you will never have to pay the full cost of your drugs as long as you take medications that are on your plan’s list of drugs covered (formulary) and you buy them at a pharmacy in your plan’s network.

If you use mail order to get your prescriptions, you may be able to get a 90-day supply of your prescription for the same amount of money that you would normally pay for a one-month supply. Your costs will be even lower after your total drug costs reach $6,440 (catastrophic coverage).

The chart below outlines how you qualify for and what you will pay under the different levels of Extra Help.

Even if you qualify for Extra Help, you must choose a private plan offering Medicare drug coverage in your area in order to get the Medicare prescription drug benefit. For Extra Help to fully cover your premium, you must choose a plan that offers basic coverage and has a premium at or below the Extra Help premium amount for your state. If you do not choose a plan, you will be automatically enrolled in one in most cases (in some cases, if you have Medicaid and certain kinds of employer coverage, you may not be enrolled or can ask not to be).*

To find out more about how Medicaid and Medicare drug coverage work together, click on the link in the GO TO box.

You should check with 800-MEDICARE (800-633-4227) to make sure the plan you choose offers basic coverage.

Note: If you have Extra Help, you will be able to change Medicare private drug plans once a month.

For a list of Extra Help premium amounts by state, click on the MI Extra.

2010 Extra Help Premium Amounts by State

Qualifying for Extra Help: Income and Asset Limits

If You Have Medicare And...	And Your Assets Are...	In 2010 You Qualify For...
Have Medicaid1 and monthly income below $9032 ($1,215 a month for couples3)	Below state Medicaid limits Note: If you have Medicaid you automatically qualify for Extra Help—you do not have to apply for it.	Full Extra Help $0 monthly premium2 $0 deductible $1.10/generic and $3.30/brand-name3 (no copay after $6,440 in total annual drug costs)
Have Medicaid and monthly income above $9035 ($1,215 a month for couples3)	Below state Medicaid limits Note: If you have Medicaid through spend-down, once you have met your spend-down amount you are automatically eligible for Extra Help for the rest of the calendar year—you do not have to apply for it.	Full Extra Help $0 monthly premium2 $0 deductible $2.50/generic and $6.30/brand-name4 (no copay after $6,440 in total annual drug costs)
Do not have Medicaid and monthly income below $1,218 ($1,639 for couples3)	Below $8,100 ($12,910 for couples)6	Full Extra Help $0 monthly premium2 $0 deductible $2.50/generic and $6.30/brand-name4 (no copay after $6,440 in total annual drug costs)
Do not have Medicaid and monthly income between $1,218 and $1,354 ($1,639 and $1,822 a month for couples3)	Below $12,510 ($25,010 for couples)6	Partial Extra Help Sliding scale monthly premium $637 deductible 15% coinsurance8 ($2.50/generic and $6.30/brand-name4 copay after $6,440 in total annual drug costs)
1 Institutionalized individuals with Medicaid, at all income levels, pay no copay, deductible or premium. 2 Premium is $0 if you enroll in a plan with a premium at or below the Extra Help premium amount. If you choose a plan with a higher premium, you will have to pay the difference. 3 Income levels are based on the Federal Poverty Levels (FPL), which goes up every year in February or March. The limits shown apply starting in February/March 2010. Add $3,740 to income limit for each additional relative living with you for whom you are responsible. Limits are also higher in Hawaii and Alaska and may vary in U.S. Territories. 4 Indexed to the overall increase in drug costs. 5 This includes "spend-down" or medically needy individuals, who spend a portion of their income to become eligible for Medicaid. 6 If you answer "no" to the question on the application that asks if you intend to use any of your assets for funeral or burial expenses, then your asset limits will be reduced by $1,500 for singles or $3,000 for couples. 7 You will pay either $60 or the plan's standard deductible for people without Extra Help, whichever is cheaper. 8 You will pay either 15 percent or the plan's standard coinsurance for people without Extra Help, whichever is cheaper.

If you have prescription drug insurance through a retiree plan, check with your former employer or union to see if you can get a Part D plan and still keep your current health coverage. If you cannot have both, you will want to think carefully about whether you should get a Part D plan, especially if your retiree health plan also covers your spouse or dependents who are not yet eligible for Medicare coverage.

*If you have Medicaid and have certain kinds of employer, retiree or union prescription drug coverage, you will not be automatically enrolled in a Part D plan. If you will lose your retiree or union health coverage by enrolling in a Medicare private drug plan, you may not want to take Medicare drug coverage. You will need to contact your state Medicaid office to find out what steps you should take to decline Part D coverage and still keep your Medicaid.

• If you are not automatically enrolled into a Part D plan, but later want one, you can choose to enroll in a Part D plan at any time without penalty (as long as your are still enrolled in Medicaid or Extra Help).

If you qualify for Extra Help for your Medicare drug benefit, you may also qualify for a Medicare Savings Program that helps pay other Medicare costs. For more information, click on the link in the GO TO box.

To apply for Extra Help online, click on the link to the Social Security website in the LINKS box.

You can see a sample of the SSA print application for Extra Help by downloading the PDF file in the Handouts box below. Do not use this sample application to apply. SSA can only process original print applications. You can call SSA to ask for an application at 800-772-1213.