Medicare Extra Help can dramatically lower your prescription drug costs if you have limited income and savings. Here is what it covers and who qualifies.
What does Extra Help cover?
Extra Help, the Part D Low-Income Subsidy, reduces or eliminates your Part D premium and deductible and caps your copays at low fixed amounts. The Social Security Administration estimates the benefit is worth about $5,900 per year. It also removes the Part D late enrollment penalty for as long as you keep it, and gives you a Special Enrollment Period to change plans. As of 2024, the program was expanded so more people qualify for the full subsidy. If you have limited income and resources, applying is well worth it — call 1-800-MEDIGAP for help.
How do you apply for Extra Help?
You apply through the Social Security Administration online, by phone, or in person — there is no cost to apply. Some people qualify automatically: those with Medicaid, Supplemental Security Income (SSI), or a Medicare Savings Program are deemed eligible and do not need to apply separately. Everyone else submits an application reporting income and resources. If approved, the subsidy applies to whichever Part D plan you choose. A licensed agent at 1-800-MEDIGAP can walk you through the application and help you pick a plan that pairs well with Extra Help.