Every Senior Benefit

Extra Help with Medicare drug costs

In short: Extra Help (also called the Low-Income Subsidy) helps people with Medicare pay for prescription drugs. It can lower your drug plan premium and deductible to $0 or close to it, and limits copays to $5.10 for generic drugs and $12.65 for brand-name drugs in 2026 (In 2027: $14.40). You can apply if your income is below about $23,940 a year for one person or $32,460 for a couple, and your savings are below the limit.

Who can get it

  • You have Medicare.
  • You live in one of the 50 states or the District of Columbia.
  • Income is below 150% of the federal poverty level. For 2026 that is about $23,940 a year for one person and $32,460 for a married couple living together. The limit is higher in Alaska and Hawaii, and higher if relatives who depend on you live with you. Some income is not counted, so apply even if you are a little over.
  • Savings and property are below $18,090 for one person or $36,100 for a couple. These amounts allow for up to $1,500 each set aside for funeral or burial costs. Without burial money, the limits are $16,590 and $33,100.

Not counted as savings: your home, cars, household goods, life insurance, and burial plots.

You get Extra Help automatically if you have Medicaid, SSI, or a Medicare Savings Program. You will get a purple letter from Medicare. You do not need to apply.

What it saves

  • Premium: $0 for many drug plans. If you pick a plan that costs more, you pay the difference.
  • Deductible: $0.
  • Copays: no more than $5.10 for each generic drug and $12.65 for each brand-name drug in 2026. Less with full Medicaid.
  • No late penalty for joining a drug plan late.
  • More chances to change plans during the year.

How to apply

What to have ready: your Social Security number and Medicare card, and information on income (pensions, wages, Social Security) and savings (bank statements, investments, life insurance cash value). You do not need to send copies with the online application.

Free help: your SHIP at shiphelp.org or 877-839-2675.

You can apply any time of the year, before or after you join a drug plan. If you are approved, choose a drug plan or Medicare will pick one for you.

Common mistakes

  • Not applying because of savings in a retirement account. Check the limits; the home and car do not count.
  • Not applying because you think income is too high. The limit is on countable income, and some income is not counted.
  • Not checking for a Medicare Savings Program. If you qualify for one, you also get Extra Help automatically, and your state pays your Part B premium.

Check what you may qualify for

Sources

Page last reviewed: 1791763200