Prescription costs are one of the biggest worries for many people on Medicare. Extra Help, also known as the Low-Income Subsidy, is a federal program that lowers what you pay for Medicare Part D drug coverage. For people who qualify, it can be worth thousands of dollars a year.
What Extra Help pays for
If you qualify, Extra Help can:
- Pay all or most of your Part D plan's monthly premium, if you choose a plan with a premium at or below a set amount in your state.
- Pay your Part D deductible.
- Lower your copays to small fixed amounts for generic and brand-name drugs.
- Remove the Part D late enrollment penalty, if you had one.
Since 2024, people with incomes up to 150% of the federal poverty level who meet the resource limits receive the full benefit.
Who qualifies automatically
You get Extra Help automatically, without applying, if you have Medicare and:
- Full Medicaid coverage.
- Supplemental Security Income (SSI).
- A Medicare Savings Program, which helps pay Medicare premiums.
Medicare will send you a purple notice confirming that you qualify.
Who can apply
If you do not qualify automatically, you may still be eligible based on your income and resources. Resources include savings, investments and real estate other than your home. They do not include your home, your car, personal belongings or life insurance policies.
The limits change every year. If your income is modest and your savings are limited, it is worth applying even if you think you might be just over the limit, because some income is not counted.
How to apply
You can apply for free:
- Online at ssa.gov/medicare/part-d-extra-help.
- By phone at 1-800-772-1213.
- In person at your local Social Security office.
You will be asked about your income, bank accounts, investments and household. You do not need to send documents with the application, but keep them handy in case Social Security asks.
Choosing a plan with Extra Help
If you qualify, compare plans to find one with a premium that Extra Help fully covers in your area, often called a "benchmark" plan, and with your drugs on its formulary. If you do not pick a plan, Medicare may enroll you in one at random.
People with Extra Help can switch to a different stand-alone Part D drug plan more often than other Medicare members, not just during open enrollment. Ask 1-800-MEDICARE or your SHIP counselor how the current rules apply to you.
Watch for scams
Extra Help is free to apply for. No legitimate organization will charge you a fee or ask for your bank details by phone to enroll you. If someone calls offering to sign you up, hang up and call Social Security directly. Read our guide to cutting prescription costs for other ways to save.
