Policy Memo 99
DOH-CACFP: Number 99 (07/04)
TO: All CACFP Sponsoring Organizations of Adult Day Care Centers
FROM: Jeanne Culver, State Director, Child and Adult Care Food Program
SUBJECT: Medicare Prescription Drug Card
I. Purpose and Scope
The purpose of this memorandum is to provide all Child and Adult Care Food Program (CACFP) sponsoring organizations of adult day care centers with information on the consideration of the Medicare Prescription Drug discount card as income on income eligibility applications. Assistance provided through the prescription drug card must not be counted as income when determining household eligibility for free and reduced price meals in CACFP.
II. Background Information
- The Medicare Prescription Drug, Improvement and Modernization Act of 2003 (MMA) offers Medicare beneficiaries a prescription drug discount card that should reduce the cost of prescription drugs.
- From June to December 2004, Medicare is providing a $600 transitional subsidy to low-income Medicare beneficiaries who do not have other drug coverage. An additional subsidy of up to $600 will be provided in calendar year 2005.
- The MMA states that neither the transitional subsidies nor the benefits resulting from the use of the prescription drug discount card shall be counted as income in determining free/reduced price eligibility under CACFP.
III. Summary of Changes
In accordance with the Medicare Prescription Drug, Improvement and Modernization Act of 2003, any subsidy that a household receives through the prescription drug card program must not be treated as income in determining eligibility for free and reduced price meals under CACFP.