Medicare Discount Card

Transitional Assistance ($600 Credit)


If your income is no more than $12,569/individual, or no more than $16,862 for a married couple, you may qualify for a $600 credit to help pay for your prescription drugs. If you qualify, Medicare will put a $600 credit on your Medicare-approved drug discount card. You wont have to pay the annual enrollment fee for the discount card if you qualify for the $600 credit.


To apply for this credit, you need to fill out an enrollment form for the prescription drug discount card and complete the part of the form for the $600 credit. Card sponsors are allowed to begin enrollment in May 2004. You will be required to submit information about your income when you complete the enrollment form. The information below is provided to help you calculate your income for the enrollment form. (NOTE: You will not qualify for the credit if you already have outpatient drug coverage from Medicaid, TRICARE for Life, FEHBP, or an employer group health plan.)



Income that Should be Included Income that Should NOT be Included


     Employee compensation (salary, wages, tips, bonuses, awards, etc.

     Unemployment compensation

     Pensions and annuities

     Social Security benefits (including SS equivalent portion of RR Retirement)

     Railroad Retirement benefits

     Veterans Affairs (VA) benefits

     Military and govnmt. disability pensions armed forces, Public Health Service (PHS), National Oceanic and Atmospheric Administration (NOAA), Foreign Service (based on date pension began, combat-related pension, etc.)

     Individual Retirement Account (IRA) distributions

     Interest (savings accounts, checking accounts, etc.)

     Ordinary dividends (stocks, bonds, etc.)

     Refunds, credits, or offsets of state/local income taxes

     Alimony receive

     Business income

     Capital gains

     Farm income

     Rental real estate, royalties, partnership, trusts, etc.

     Other gains (sale or exchange of business property)

     Other income (lottery winnings, awards, prizes, raffles, etc.)


         Inheritances and gifts (taxed or estate or giver if not under limits of exemption)

         Interest on state/local government obligations (e.g., bonds)

         Workers compensation payments

         Federal Employees Compensation Act payments

         Supplemental Security Income (SSI) benefits

         Income from national seniors service corps program

         Public welfare and other public assistance benefits

         Proceeds from sale of a home

         Lump sum life insurance benefits paid upon death of insured

         Life insurance benefits paid in installments

         Accelerated life insurance death benefit payments (e.g., viatical settlements, terminal illness, chronic illness)

         Medical Savings Accounts (MSA) withdrawals for medical expenses

         Payments from long-term care insurance policies (subject to limitation)

         Accident or health insurance policy benefits

         Accident compensatory damaged

         Child support payment received

         Most foster care provider payments received

         Disaster Relief grant

        Disability payments as the result of a terrorist attack