Low-Income Medicare Beneficiaries at Congress' Mercy

November 16, 2004
A federal program that pays monthly premiums for low-income people with Medicare will expire on November 20th unless Congress moves swiftly to reauthorize the program. The premium increases 17% early next year.

About 156,000 older and disabled Americans, with incomes between 120 to 135% of the poverty level, and assets below $4,000 for an individual and $6,000 for a couple in most states, will lose their Medicare premium support if the Qualifying Individual-1 (QI-1) program is terminated.

“There is broad concern that the federal government may drop this ball. If they drop the ball, many older and disabled Americans will be badly hurt,” said Robert M. Hayes, president of the Medicare Rights Center.

The QI-1 program is one of three Medicare Savings Programs that helps low-income people with Medicare lower their out-of-pocket health care expenses.

Beginning in January 2005, the Medicare Part B premium will increase 17.4 percent to $78.20 a month ($938.40 annually), up from this year’s monthly premium of $66.60.

In July, Senator Charles Grassley (Rep. IA) introduced a bipartisan bill to reauthorize the QI-1 program which is currently in the Senate Finance Committee.

The Medicare Rights Center (MRC) is the nation’s largest independent source of information and assistance for people with Medicare. Founded in 1989, MRC helps older adults and people with disabilities get good, affordable health care.

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