Information For American Indians And Alaska Natives

Social Security and the Centers for Medicare & Medicaid Services are working together to get you extra help with your prescription drug costs. If you have limited income and resources, you may be able to get help paying for your monthly premiums, annual deductibles and prescription co-payments under the Medicare prescription drug program that began January 1, 2006.

By filing an Application for Help with Medicare Prescription Drug Plan Costs (SSA-1020) Social Security will determine if you are eligible for the extra help. Social Security will need to know your income and the value of your savings, investments and real estate (other than your home). Most of the questions on the application deal with income and resource limits. Social Security will not ask for documentation initially to support the information you provide, but will match your information with data available from other federal agencies.

What is the income limit?

To qualify for extra help with Medicare prescription drug plan costs, your annual income must be limited to $15,600 for an individual ($21,000 for a married couple living together).

Even if your annual income is higher, you still may be able to get some help. Some examples where your income may be higher include if you or your spouse:

• Support other family members who live with you;
• Have earnings from work; or
• Live in Alaska or Hawaii.

What does not count as income?

Not all cash payments count as income. For example, Social Security will not count:

• Food stamp assistance;
• Home energy assistance;
• Medical treatment and drugs;
• Housing assistance;
• Disaster assistance;
• Earned income tax credit payments;
• Victim's compensation payments;
• Scholarships and education grants;
• Funds held in trust by the Secretary of the Interior for an Indian Tribe and distributed per capita to members of the Tribe;
• Certain distributions received by an Alaska Native from an Alaska Native Regional and Village Corporation;
• Up to $2,000 per year received by an Indian that is derived from individual interests in trusts or restricted lands; and
• Payments to members of specific Indian Tribes as provided by federal legislation.

You should contact Social Security for other income exclusions.

What is the resource limit?

To get the extra help, your total resources must be limited to $11,990 for an individual ($23,970 for a married couple living together).

Resources include the value of the things you own. Some examples are:

• Real estate (other than your primary residence);
• Bank accounts, including checking, savings and certificates of deposit;
• Stocks;
• Bonds, including U.S. Savings Bonds;
• Mutual funds;
• Individual Retirement Accounts (IRAs); or
• Cash at home or anywhere else.

What does not count as a resource?

Social Security will not count:

• Your primary residence;
• Your personal possessions;
• Your vehicle(s);
• Resources you could not easily convert to cash, such as jewelry or home furnishings;
• Property you need for self-support that is used in a trade or business;
• The cash value of life insurance if the face value of the policies you own is $1,500 or less;
• Burial spaces;
• Interest earned on money you plan to use for burial expenses;
• Certain distributions received by an Alaska Native from an Alaska Native Regional and Village Corporation;
• Land held in trust by the United States for an individual Indian or Tribe;
• Funds held in trust by the Secretary of the Interior for an Indian Tribe and distributed per capita to members of the Tribe;
• Certain other money you are holding is not counted for nine months, such as:
• Retroactive Social Security or Supplemental Security Income benefits;
• Tax advances and refunds related to earned income tax credits and child tax credits;
• Compensation you receive as a crime victim; and
• Relocation assistance from a state or local government.

You should contact Social Security for other resource exclusions.

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What if I do not have all of the information?

Even if you do not have all of your information or cannot find the documents, you should file for the extra help if you think you will be eligible. We will work with you to explain the information we need.