AARPRI supports Medicare Savings Program Expansion

In a letter of support signed by State Director Kathleen Connell, AARP Rhode Island today urged the House Finance Committee to recommend passage of a bill that would improve access to Medicare programs and help those with limited incomes pay premiums and out-of-pocket costs.

 

 

 

 

May 26, 2015

Representative Raymond E. Gallison, Jr.
Chairman
House Committee on Finance

Dear Chairman Gallison,

AARP supports House Bill H5201, An Act Relating to Human Services – Medical Assistance, which expands the eligibility for the Medicare Savings Program (MSP) that pays part of or all of Medicare Part A and Part B premiums by increasing the maximum income eligibility to 185 percent of Federal Poverty Level and eliminates the asset limits.

AARP is committed to helping low-income Americans have access to Medicare. We need to

Approximately 150,000 seniors in Rhode Island are enrolled in Medicare for their health coverage. They devote on average about 40 percent of their out-of-pocket spending on healthcare – six times more than people with job-based coverage.  Those who cannot afford supplemental coverage face bankruptcy from high medical bills because Medicare has no upper limit on cost sharing.  More than half of all Medicare beneficiaries have annual incomes below $20,000, and the economic security of older Americans has only worsened in the economic downturn.  The monthly premium of $104.90 is a significant budget item for them.

The current asset test directly contradicts efforts to encourage people to save by penalizing even those with modest savings. We must encourage people to save for retirement, not penalize those who do so.  By eliminating the asset limits people who did the right thing and saved a small nest egg can still get help.

By increasing the maximum income eligibility and eliminating the asset test a little more than $1,200 would be put into the pockets of these seniors.  This money would be used to help with other expenses in their lives.  It is critical to help our seniors in Rhode Island in this way!

Members of the committee surely can appreciate the hardship that the premium and cost sharing expenses have on some of our seniors.

AARP with over 130,000 members in Rhode Island supports House Bill H5201 and urges you to consider this bill favorably.

Respectfully submitted,

Kathleen Connell
State Director
AARP Rhode Island