Extra Help with Medicare drug costs: who qualifies and what it pays in 2027

What Extra Help is

Extra Help is a Medicare program that helps people with limited income and resources pay for Medicare drug coverage (Part D). It's also called the Low-Income Subsidy, or LIS. It can lower or remove your plan premium and deductible, cap what you pay for each prescription, and wipe out the Part D late enrollment penalty.

It's run with Social Security, and it isn't available in Puerto Rico, the U.S. Virgin Islands, Guam, the Northern Mariana Islands or American Samoa, which have their own programs.

Who qualifies

For 2026, the general limits are income up to $23,940 and resources up to $18,090 for an individual, or income up to $32,460 and resources up to $36,100 for a married couple. Limits are higher in Alaska and Hawaii. Resources include things like bank accounts, stocks and bonds; your home, one car and personal belongings generally don't count. The limits usually go up each year.

You get Extra Help automatically, without applying, if you have full-benefit Medicaid, get help from your state paying your Part B premium through a Medicare Savings Program, or get Supplemental Security Income (SSI).

What you'll pay with Extra Help in 2027

• Plan premium: $0 (for a plan at or below the benchmark in your area).
• Plan deductible: $0.
• Up to $5.80 for each generic drug and $14.40 for each brand-name drug at a participating pharmacy.
• $0 for each covered drug once your total drug costs reach $2,400.
• If you also have full Medicaid and are in the Qualified Medicare Beneficiary (QMB) program, no more than $4.90 per covered drug.

How to apply

You can apply online through Social Security, by phone, or at a local Social Security office. When you apply for Extra Help, Social Security will also send your information to your state to start a Medicare Savings Program application, unless you tell them not to. That's useful, because a Medicare Savings Program can also pay your Part B premium.

If you qualify, you keep Extra Help through December 31 even if your income changes during the year. If you don't qualify now, you can reapply any time your income or resources change.

More flexibility to change plans

Most people can only change Medicare drug plans at certain times of year. People with Extra Help or Medicaid may be able to change their drug coverage once a month. If you qualify for Extra Help but aren't in a drug plan yet, Medicare's LI NET program can give you temporary coverage.

Free help

Your State Health Insurance Assistance Program (SHIP) can help you apply for free. You can also call 1-800-MEDICARE (1-800-633-4227).