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Legislators Head Back to Hartford Over Medicare Savings Program

As the dust began to settle on the state budget passed in late October (123 days into the current fiscal year) and people were able to digest some of the cuts in the new bipartisan budget, seniors across the state soon realized they were about to take a big hit: Cuts to the Medicare Savings Program (MSP) would have removed nearly 113,000 seniors in the state from the program in the new year. Facing heavy criticism, the state has delayed implementing the cut and legislators are now set to go back up to Hartford this month to try to restore funding to the program.

The MSP is designed to help eligible residents cover Medicare Part B premiums and other Medicare out-of-pocket costs. Starting Jan. 1, 2018, the state was lowering the eligibility thresholds in an effort to save close to $70 million. The previous annual income threshold for low-income seniors and the disabled to participate in the MSP was $25,447. The state budget’s new threshold for help is half that annual income, or $12,060 or less per year.

Many people enrolled in the program received a letter shortly after the budget passed informing them that they were no longer eligible under the new income guidelines, resulting in swift political backlash and numerous seniors calling their local representatives.

In response, the Department of Social Services (DSS) announced earlier this month that the new income guidelines would not go into effect until March 1, 2018 rather than Jan. 1. The delay on the part of DSS to March 1 essentially gives legislators some time to find the money to the restore and fund the program under the previous income levels though the end of the fiscal year.

According to State Representative Noreen Kokoruda (R-101), 233 people in Madison currently benefit from this program.

The legislature recently successfully petitioned to go back up to Hartford in the last week of December to identify roughly $53 million in funds from other parts of the budget to restore the program. Kokoruda said parts of the budget have been identified to cover the program for now, but said once the current fiscal year ends on June 30, 2018, legislators need to look at adapting the program to ensure it’s sustainable and seniors with the greatest need are taken care of.

“Right now only one thing is considered: How much income comes in,” she said in regards to MSP eligibility. “We have got to do something to not pull the rug out from under seniors, but we need to go back and look at it and make it sustainable.”

Kokoruda said an asset test for people applying to the program is a likely solution. Currently, a senior with high savings but low income receives the same benefit as a senior with low income and no savings.

Madison Senior Center Assistant Director and Municipal Agent for the Elderly Heather Noblin is a member of the Connecticut Local Administrators of Social Services (CLASS), an organization that recently sent a letter to legislators with suggestions to make the program more sustainable. Its suggestions included the addition of an asset test.

“Without MSP, individuals have to apply for Low Income Subsidy (LIS) through Social Security,” the letter reads. “Social Security imposes asset restrictions on LIS. It would stand to reason that asset restrictions could be placed on anyone getting onto MSP. With the cost of living in Connecticut being significantly higher than many other states, an asset test identical to that of Social Security may not be appropriate. However, at least some asset test would be a reasonable restriction to place on MSP. The legislature may also consider modeling MSP after the Connecticut Energy Assistance Program, which differentiates between renters and homeowners as it pertains to the asset restrictions.”

Noblin said changes like this will help ensure those in need are assisted. She said the sudden change in this program has left many residents confused, scared, and angry.

“I have seen a range of emotions,” she said. “We have met with quite a few folks over the past month or two. Some folks are completely confused—they come in with the letter from the state and they don’t know what it means, and there are folks that haven’t heard and so then I am the bearer of bad news.

“Emotions range anywhere from being really, really angry to there was a woman who was in here crying,” she continued.

Noblin said what people need to understand is how devastating the cuts to this program can be to some residents.

“She is terrified that she’s going to have to leave her home,” she said in reference to the woman in tears. “That is the reality of this. This is a possibility that could happen to them because if you take someone who is just making ends meet and you cut back the $134 a month [under the program] so they have to start paying that amount for their Part B premium, that’s a huge amount of money for someone who is living off of $1,000 a month or $1,300 a month. That is a huge amount of money to take out of someone’s budget that could mean the difference between them having food for one week of the month in the house or not.”

While the reality of implemented cuts to the program is alarming, Noblin said it is important for residents to remember that the new income deadlines do not kick in until March 1, if at all, depending on the actions of the legislature. No one is going to be thrown off this program at the end of the calendar year.

“We are really hoping that the representatives are going to go back into session and meet and change the guidelines for the program,” she said.

Residents with questions or concerns can contact the Madison Senior Center at 203-245-5627.