Selling your home?

If you’re a low- to moderate-income Medicare enrollee, you may already benefit from one or more state or federal programs that help you pay for Medicare gap or drug (Part D) coverage.  But your monthly income isn’t the only eligibility test for these programs. Asset levels are counted, too. Your assets are the total amount of your savings, investments, real estate and any cash value of insurance policies. The value of your homestead and one car are not counted, and neither is an additional $1,500 if it’s planned for burial expenses.

You should be aware that any increase in your assets could boost your asset level and make you ineligible for programs that you may have counted on in the past. This can become an issue as people grow older and decide they no longer want to care for a house and decide to sell and move into a rental unit. Of course, those proceeds can be a nice cushion for the future; the point is to know ahead of time what changes to expect and to plan for them. Here are some programs’ eligibility levels for 2008:

For Extra Help paying for Part D.   This program helps pay for monthly premiums and prescription drugs and eliminates the “donut hole” for enrollees. To qualify, your assets must be limited to $11,710 (single) or $23,410 (couple). Monthly income is limited to $1,276 (single) or $1,711 (couple). These levels will change in March 2008.

For a Medicare Savings Program. A number of these programs waive the 2008 Part B monthly premium of $96.40; one also waives Medicare co-pays and deductibles. Assets are limited to $10,000 (single) and $18,000 (couple).  Monthly income limits range from $871 to $1,169 (single) and $1,161 to $1,561 (couple). These levels will change July 1, 2008.

For Senior Partners Care. This Senior Federation program partners with participating Minnesota providers who accept Medicare payment as payment in full. Co-pays and deductibles are waived. Asset level is $40,763 for singles or couples. Monthly income limits are $1,702 (single) and $2,282 (couple).  These levels will change in March 2008.

There are several other programs not necessarily linked with Medicare, such as Medicaid (Medical Assistance), sliding fee scale clinics, SSI, Social Security disability, MinnesotaCare, etc., which also have asset and income limits. 

Stay informed about eligibility rules and avoid surprises. Contact the Federation’s Health Plan Information Center, 651/783-5045 or toll-free 866/783-5045 for details or for information on how to apply for one or more of these programs.