Extra Help with drug costs

What Extra Help is

Extra Help is one of the most valuable forms of assistance in Medicare because it cuts directly into the cost of prescriptions. Officially the Part D Low-Income Subsidy, it’s a federal program that helps people with limited income and resources afford their drug coverage. If you qualify, it changes what you pay at the pharmacy from the first prescription.

What it covers

Depending on your situation, Extra Help can reduce or eliminate your Part D plan’s monthly premium and its deductible, and it holds your copays to small, capped amounts. A meaningful change took effect in 2024: the old "partial" subsidy was eliminated, so now everyone who qualifies receives the full subsidy rather than a reduced version. That makes the program more generous than many people remember.

Who qualifies

Eligibility is based on your income and resources. As a rough guide, income up to about 150% of the federal poverty level can qualify, along with limits on savings and other resources. Those dollar limits change every year and are higher than most people expect, so it’s worth applying even if you’re unsure. You also qualify automatically if you have Medicaid, a Medicare Savings Program, or Supplemental Security Income.

How to apply

You apply for free through Social Security — online, by phone, or in person. There’s no cost and no obligation. Qualifying for Extra Help also opens a Special Enrollment Period, so you can pick or switch to a drug plan that fits once you’re approved.