While the vast majority of older adults have Medicare, they still have significant out-of-pocket costs. Medicare Part B Premiums alone amount to $2,100 a year. Add in deductibles, co-payments and the many services not covered by Medicare (e.g. dental care, non-skilled home care and hearing aids) and average out-of-pocket costs run about $6,600 (AARP). A 2022 West-Health Gallup West poll found 37% of older persons age 65 and older were concerned they will not be able to pay for needed healthcare services and nearly two-thirds reported that healthcare costs were a major or minor financial burden. This leads some older adults to avoid seeking treatment due to concerns about affording co-payments such as the senior who recently deferred cataract surgery as they could not afford the $200 co-pay. Others skip prescribed medications or cut back on basic needs such as food to pay for healthcare.

The Senior Agenda Coalition of RI is advocating passage of legislation to make healthcare more affordable for lower-income older adults and persons on disabilities on Medicare but whose income is not low enough to be on Medicaid. The bills, H7333 by Representative Karen Alzate and S2399 by Senator Sandra Cano, increase eligibility for the Medicare Savings Program (MSP) which helps lower-income older adults and persons with disabilities by covering the $175/month Medicare Part B Premium now taken out of their Social Security checks. Under the bill, the federal government would cover the Part B Premium cost. For those with very low-incomes, deductibles and co-payments would also be covered.

MSP is a joint federal/state program with income and resource thresholds set by the federal government. States, however, are allowed to exceed the federal limits and many states have done so including nearby states of Connecticut, Maine, Massachusetts, New York and Vermont. Rhode Island now follows the federal income limit of 135% of the federal poverty level (FPL) of $1,714/month for a single person with a resource limit of $9,430-single person.

To make healthcare more affordable for lower-income persons on Medicare and enhance their economic security, the legislation, based on the New York law, increases income eligibility to 186% of FPL ($2,354/month-single person) and removes the asset limit. Very low-income persons would also be eligible to have deductibles and co-payments covered. Estimates are that 17,000 persons on Medicare would benefit from passing the bills. This would save them at least $2,100 yearly in Part B premium costs. It also qualifies them for a federal program called “Extra Help” that helps with prescription drugs costs saving them even more money. These are dollars they could use in these challenging economic times to help pay for basic living expenses such as food, rent and transportation.

As the federal government would cover the cost of the Part B premiums for those newly eligible for MSP, this would bring an estimated $34 Million federal dollars into the state to bolster our economy. The Senior Agenda Coalition is joined by the Economic Progress Institute, Ocean State Center for Independent Living, Protect Our Healthcare Coalition, RI Organizing Project and RIPIN as advocacy partners in support of these bills. We call on Governor McKee and the RI legislature to support expanding the Medicare Savings Program. Passage of bills H7333 and S2399 would be a WIN for thousands of low-income seniors and adults with disabilities who need and deserve our support and a huge economic WIN for the state. You can help get these bills passed by calling Speaker Joe Shekarchi (222-2447), Senate President Ruggiero (222-6655) and your local legislators to ask them to support these bills.

A Warwick resident and former state representative, Maureen Maigret is the Policy Advisor of the Senior Agenda Coalition of RI.