| Notes: | In 2005, 150% of the FPL was $14,355 for an individual age 65 and older.
The U.S. figure excludes the territories.
The Medicare Prescription Drug, Improvement, and Modernization Act of 2003 (MMA) added prescription drug coverage to Medicare (Medicare Part D), beginning on January 1, 2006. Medicares elderly and disabled beneficiaries can enroll in private plans that contract with Medicare to provide the drug benefit. People on Medicare can obtain the Medicare drug benefit through two types of private plans. Beneficiaries can join a prescription drug plan (PDP) for drug coverage only and get their other Medicare benefits through the fee-for-service program, as the majority of people with Medicare currently do. Alternatively they can join a Medicare Advantage (MA) plan, such as an HMO or regional PPO, that covers drugs and all other Medicare benefits. Private plans can operate in one or more of 34 PDP regions and 26 MA regions nationwide.
The MMA includes a number of provisions aimed at making it possible for low-income Medicare beneficiaries to take advantage of the new Medicare prescription drug benefit, including a major new low-income subsidy program. Once enrolled in a Medicaid drug plan, people with income below 150 percent of the poverty line with limited assets are eligible for assistance with their Medicare drug coverage cost-sharing obligations. The level of assistance the low -income subsidy program provides will vary depending on an individuals circumstances, but it is particularly generous for people with income below 135 percent of the poverty. |
Medicare Spending
