The Senate and House passed a bill late September that would authorize additional spending for a program that assists low-income seniors with their Medicare premiums. President Bush will soon sign the legislation into law.
The bill (S. 3560) would also increase incentives for some drug manufacturers to produce antibiotics.
The legislation, sponsored by Senate Finance Chairman Senator Max Baucus (D-MT), would authorize $45 million extra to pay Medicare premiums for people considered “qualifying individuals.” These are people whose earnings are at 120 percent to 135 percent of the poverty line (or between $1,040 and $1,170 per month), have few assets and do not qualify for Medicaid.
The QI program, as it is known, was created in 1997 as part of a budget measure to expand the government’s assistance programs for low-income seniors. Premiums for Medicare’s Part B program — outpatient services, covering most care other than hospital stays — are $96.40 per month in 2008 and 2009. Without assistance, Part B premiums alone would consume about 10 percent of the monthly income of seniors living near the poverty level.
The Medicare law that Congress enacted this summer (P.L. 110-275) included an extension of the QI program through December 2009. The law authorized spending $400 million for the benefit in the 2008 calendar year; the bill the Senate passed would increase that limit to $445 million.
The bill would be paid for by requiring states to participate in a federal computer system used to determine whether people are eligible for Medicaid.
