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rolanniNOTE: My computer has lost its mind again and I'll have to reboot in order to get large portions of the web (like Narbonic and the NYT blog link generator) back. Will edit later with a link to the full story. In the meantime, drink your coffee to this:
Under New Medicare Prescription Drug Plan, Food Stamps May Be Reduced
By ROBERT PEAR
Published: May 8, 2005
WASHINGTON, May 7 - Elderly people with low incomes may lose some of their food stamps if they sign up for the new Medicare prescription drug benefit, the Bush administration said Saturday.
When Medicare begins covering drugs in January, older Americans will spend less of their own money on drugs and will therefore have more to spend on food, reducing their need for food stamps, officials said.
[...]
The guide gives this example of how the new law would affect a hypothetical Medicare beneficiary, Mrs. Smith, who receives $798 a month in Social Security. She does not receive Medicaid. She now pays $147 a month for medical expenses, including $51 for three prescription drugs. Her monthly rent is $421.
Under the Medicare drug plan, Mrs. Smith will not have to pay a monthly premium or a deductible. She will have a $3 co-payment on each drug, for $9 a month. Her medical spending will decline to $105 a month, from $147, for a saving of $42.
But Mrs. Smith's monthly food stamp allotment, $27, will be reduced to $10 a month, because her "out-of-pocket medical costs have gone down." The administration says she will come out ahead because "she still has $25 more cash in her pocket - $42 medical savings, less the $17 decrease in food stamps."
Under New Medicare Prescription Drug Plan, Food Stamps May Be Reduced
By ROBERT PEAR
Published: May 8, 2005
WASHINGTON, May 7 - Elderly people with low incomes may lose some of their food stamps if they sign up for the new Medicare prescription drug benefit, the Bush administration said Saturday.
When Medicare begins covering drugs in January, older Americans will spend less of their own money on drugs and will therefore have more to spend on food, reducing their need for food stamps, officials said.
[...]
The guide gives this example of how the new law would affect a hypothetical Medicare beneficiary, Mrs. Smith, who receives $798 a month in Social Security. She does not receive Medicaid. She now pays $147 a month for medical expenses, including $51 for three prescription drugs. Her monthly rent is $421.
Under the Medicare drug plan, Mrs. Smith will not have to pay a monthly premium or a deductible. She will have a $3 co-payment on each drug, for $9 a month. Her medical spending will decline to $105 a month, from $147, for a saving of $42.
But Mrs. Smith's monthly food stamp allotment, $27, will be reduced to $10 a month, because her "out-of-pocket medical costs have gone down." The administration says she will come out ahead because "she still has $25 more cash in her pocket - $42 medical savings, less the $17 decrease in food stamps."
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Date: 2005-05-08 06:33 am (UTC)Watch those dimes, so we can give those dollars to the rich...