- How do new Social Security laws affect life insurance?
- June 18, 2010
Thanks to a few recent changes to the Social Security Law, those on Medicare have a better way to pay prescription drug costs and reduce the cost of insurance.
According to a recent New Jersey Today article, programs like the Medicare Prescription Drug Plan and Social Security make a considerable difference when it comes to paying for prescription medication.
The revised Medicare Prescription Drug Plan and other Federal programs that went into effect this year, will allow eligible seniors to take advantage of an annual savings of $3,900 to help pay for monthly premiums, annual deductibles, and prescription co-payments.
In January, the Social Security Law received two revisions. First, life insurance is no longer considered a financial resource. Previously, life insurance was grouped in the same category as banks, bonds, and stocks. Also, any financial assistance given to the member that is used to pay for household expenses is no longer counted as income.
According to the article, Medicare members must meet several stipulations to be eligible for additional financial assistance. If single, in order to be enrolled in the program, the individual must have an annual income of less than $16,245 and resources that don’t exceed $12,510.
Married couples must have an annual income of less than $21,855 and combined resources that don’t exceed $25,010. If other family members are being supported in the household, additional help may be offered and the income qualifications may be waived.
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