Don't Forget One Time Refund for the Telephone Excise Tax

Did you have long-distance telephone service between Feb. 28, 2003, and Aug. 1, 2006? If so, there is a good chance the government owes you money.

The Internal Revenue Service (IRS) is offering a one-time refund for the telephone excise tax, which the government used to collect on long-distance telephone service. Recent federal court decisions held that the three-percent tax, which began in 1898, no longer applies.

To make things simple, you can request a standard refund amount between $30 and $60 depending on your household. If you choose the standard amount, you only need to fill out one extra line on your tax return. Otherwise, you must determine your refund using the actual amount of taxes paid, which will involve gathering old phone bills and filling out an additional form. If you don't need to file a tax return, you still can get the refund by using a new simple Form 1040EZ-T.

Many Medicare Beneficiaries Under Age 65 Not Accessing Medicare Savings Programs

The Medicare Advocacy Project (MAP) believes that many Medicare beneficiaries under age 65 in Massachusetts are not able to access the Medicare Savings Program (MSP) benefits that they are legally entitled to. Unless eligible for MassHealth Standard, beneficiaries under age 65 do not receive MSP benefits. MAP is working to correct this problem and is looking for affected beneficiaries.

MassHealth does not advertise that MSP benefits are available to people under 65 who are not on Masshealth Standard. The MassHealth computerized eligibility determinations do not pick up on these cases.

The MassHealth regulations concerning the Medicare Savings Programs are contained in the sections of the regulations that apply to people 65 and over, creating ambiguity as to whether they apply to those under age 65.

The Law: There are three Medicare Savings Programs:

1. QMB (Qualified Medicare Beneficiary) covers Medicare deductibles, Medicare co-insurance and the Medicare premium(s). QMB has an income limit of 100% of the federal poverty level and an asset limit of $4000 - $6000.
   
2. SLMB (Specified Low Income Medicare Beneficiary) covers the Medicare premium(s) and has an income limit of 120% of the federal poverty level and an asset limit of $4000 - $6000.
   
3. QI (Qualified Individual) covers the Medicare premium(s) and has an income limit of 135% of the federal poverty level and an asset limit of $4000 - $6000.
   

The Law: SSI Income Counting Rules must Be Used:

Under federal law (42 U.S.C. § 1396d(p)(1), 42 U.S.C. § 1396a(a)(10)(E)(iii); 42 U.S.C. § 1396a(a)(10)(E)(iv)) countable income for these programs is supposed to be determined using SSI income counting rules. These rules are different from the rules that are used by MassHealth to determine MassHealth eligibility for disabled adults under age 65. While MassHealth uses a gross income test without deductions and counts the income of all household members including minor children in determining the adult's eligibility, SSI has deductions from countable income and does not count the income of a minor child in determining an adult's eligibility. This difference can be meaningful in individual situations.

Examples (using 2006 income and poverty level standards):

1. Single disabled adult with gross SSDI income of $1100 per month in 2006. Under MassHealth rules, this individual is over income for MassHealth Standard and thus would not have their Medicare premium paid by MassHealth. Under SSI income rules, countable income would be $1080 after the $20 disregard and thus the person would have countable income below 133% FPL and would be eligible as a QI for payment of the Medicare premium.
   
2. Disabled adult who is a single mother with gross SSDI income of $800 who has a child with dependants' benefits of $400 a month and child support of $300 a month. The gross monthly family income of $1500 is over the 133% for MassHealth Standard. However, under SSI income rules, the adults' countable income is only $800 which is below 100% of the Federal poverty level. Thus, although this person is not eligible for MassHealth Standard, she should be eligible for full QMB benefits which would pay Medicare deductibles and cost sharing as well as the Medicare premium.
   
3. Disabled adult with no income who has a working spouse grossing $2000 per month. Under MassHealth rules, this person is not eligible for MassHealth Standard as gross family income exceeds 133% of the Federal Poverty level. If SSI income deductions were applied, countable income would be $957 for a family of two and the person would be eligible for full QMB benefits which would pay Medicare deductibles and cost sharing as well as the Medicare premium.
   

If you have clients under age 65 who are not eligible for MassHealth Standard, but might be eligible for QMB, SLMB, or QI benefits under the SSI income rules, we would like to hear about them. Please contact Nancy Lorenz, nlorenz@gbls.org, or Sarah Anderson, sanderson@gbls.org.

No Medicare Part D Late Fee for Low-Income Enrollees

CMS Acting Administrator Leslie V. Norwalk announced the elimination of the 2007 late enrollment penalty for any beneficiary eligible for the low income subsidy for a Part D plan even if they failed to sign up by the program's initial deadline.

Generally, Medicare beneficiaries who are qualified to join a prescription drug plan, or Part D, but choose not to enroll during their initial enrollment period, may be subject to a late enrollment penalty (LEP). These fees were intended to encourage Medicare beneficiaries to sign up for the drug coverage plan when they first become eligible, but may cause some low-income beneficiaries to avoid seeking coverage.

Under this initiative, certain low-income Medicare beneficiaries can enroll in a Medicare prescription drug plan with no penalty through December 31, 2007.

For more information, call the Somerville-Cambridge Elder Services Aging Information Center, 617-628-2601 ext. 3151

Massachusetts Seeks to Enroll Older People in Food Stamps Program

Only a few years ago, Massachusetts ranked last in the nation with 60% of the people eligible for food stamps not on the program. But over the past 5 years, an aggressive outreach plan has turned those numbers around. Today, Massachusetts ranks number one in the percentage of new food stamp users.

In 2001, there were 222,519 state residents using food stamps. Today, there are 445,381 people enrolled. The program has doubled! Across the country, about 25.7 million people use food stamps. In 2006, the Massachusetts issued $408 million in Food Stamp benefits, which also helps the economy by increasing grocery store sales.

Some older people may not apply for food stamps because of myths about the program:

• Food stamps are just for young mothers with kids. (False)
  The program is for people with limited income, regardless of their age. About half the people benefiting from food stamps are children---but only 8 % were age 60 or older.
• Food stamps mean using funny-colored "money." (False)
  Today, people use a debit card that looks just like any other plastic credit card. The state deposits your monthly food stamps benefits in an electronic benefits transfer account. They send you a card to use at food store checkouts to pay for your food. Whenever you buy food with your card, your receipt will show the amount of money left in your account.
• Food stamps can only buy limited items. (False)
  Food stamps can be used to buy almost any food item in any store where you usually shop for food. Massachusetts residents who use food stamps can spend the money they save to help pay their other bills.
• Food stamps aren’t worth much financially. (False)
  The average food stamp benefit in 2004 was $1,020 a year. A single person will get less than a family---but even the minimum benefit is worth $120 a year. Since there is no cost to apply, that frees up $120 to use for something besides food.
• Food stamps are hard to apply for: (False)
  You can apply at food stamp outreach locations throughout the state. To find an office near you, call the toll-free FoodSource Hotline at 1-800-645-8333. Ask them what items you need to bring when applying for food stamps. You will need to bring information about your income and expenses, such as Social Security or SSI payments, rental payments, and medical bills. Remember, hundreds of thousands of people have qualified.
  For more information about food stamps in Massachusetts, and how to apply, call 1-866-950-FOOD. If you want to find out if you could be eligible, check out the Internet tool at www.foodstamps-step1.usda.gov.