Grassley: Key Official Repeats No Loss of Food Stamps With Medicare Drug Card

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Grassley: Key Official Repeats No Loss of Food Stamps With Medicare Drug Card

The following press release was published by the United States Committee on Finance Ranking Member’s News on June 14, 2004. It is reproduced in full below.

Dear Mr. Chairman:

During the June 8, 2004, Finance Committee hearing on the Medicare Prescription Drug DiscountCard, a question was asked of me by Democratic Leader Daschle regarding the $600 in transitionalassistance and discounted prices, and its application to determining an individual’s eligibility andbenefits under the USDA Food Stamp program. I am writing to reiterate my answer in response tothis question and to clarify any ambiguity on this important matter: Low-income beneficiaries whoget valuable new help with their drug costs by using a Medicare-approved drug discount card do notlose any eligibility or benefits in the Food Stamp program.

Section 1860D-31(g)(6) of the Social Security Act, as added by the Medicare Prescription Drug,Improvement, and Modernization Act of 2003, states: “The availability of negotiated prices ortransitional assistance under this section shall not be treated as benefits or otherwise taken intoaccount in determining an individual’s eligibility for, or the amount of benefits under, any otherFederal program."

In response to the question, I said the law clearly states that assistance for low-income beneficiariesthrough the drug card and transitional assistance cannot take away or reduce any other existingfederal benefits. Low-income Medicare beneficiaries who receive food stamps and have prescriptiondrug costs should definitely apply for the card and the transitional assistance. Beneficiaries mayreduce their drug spending by literally thousands of dollars as a result of the financial assistance anddiscounts in the drug card program, and it will not affect the calculation of food stamp benefits.Please find attached a posting to the USDA website clarifying this policy.

Let me also thank you and your committee again for your leadership in providing relief from highdrug costs for Medicare beneficiaries without drug coverage. Thanks to your leadership and the newMedicare law, low-income Medicare beneficiaries can get help right now with drugs and food. I amsending a similar letter to Democratic Leader Daschle.

Sincerely,

Mark B. McClellan, M.D., Ph.D.

Administrator

Source: Ranking Member’s News

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