Prescription drug costs are one of the biggest budget pressures for Medicare beneficiaries on a fixed income. Medicare Extra Help, officially known as the Part D Low-Income Subsidy (LIS), can bring your monthly drug costs down to nearly nothing if you qualify. Here’s a full breakdown of the 2026 income and resource limits, how much you can actually save, and exactly how to apply.

What Is Medicare Extra Help

Medicare Extra Help — also called the Part D Low-Income Subsidy or LIS — is a federal program that helps pay for the costs associated with Medicare Part D prescription drug coverage, including your monthly premium, annual deductible, and the coinsurance or copays you pay at the pharmacy.

The program is run jointly by two agencies:

• The Social Security Administration handles applications and makes the initial eligibility determination based on your income and resources.
• Medicare (CMS) applies the subsidy to your actual Part D plan once you’re approved, reducing what you pay at the pharmacy counter.

Because Extra Help works alongside whichever Part D plan you already have (or choose), it doesn’t require you to give up your existing coverage — it simply makes that coverage dramatically cheaper if you qualify.

Who Is Eligible in 2026

Eligibility for Extra Help is based on both your income and your countable resources (assets). According to Medicare.gov, the 2026 limits are as follows:

Income limits (2026)

• Single individual: annual income below $23,940
• Married couple living together: combined annual income below $32,460

These figures reflect 150% of the Federal Poverty Level in the 48 contiguous states and D.C. (limits are slightly higher in Alaska and Hawaii). Nearly all income counts toward this limit, including Social Security benefits, wages, pensions, and most other regular income sources.

Resource (asset) limits (2026)

• Single individual: generally around $16,590, or up to $18,090 if you’ve told Social Security you’re setting aside funds for burial expenses
• Married couple: generally around $33,100, or up to $36,100 with a documented burial fund set-aside

Countable resources include things like checking and savings accounts, CDs, stocks, bonds, mutual funds, and IRAs. Your home, one vehicle, and ordinary household belongings are not counted. Because these figures are adjusted for inflation and can shift, it’s worth double-checking the exact current-year number on Medicare.gov or with Social Security before you apply, especially if your assets are close to the cutoff.

Automatic (deemed) eligibility

You don’t need to apply separately for Extra Help if you already have any of the following — you’ll be automatically enrolled:

• Full Medicaid coverage
• Supplemental Security Income (SSI)
• A state Medicare Savings Program (MSP) that pays your Part B premium

How Much You Can Save

Extra Help significantly caps what you pay out of pocket for covered prescriptions. For 2026, copay amounts under the program are capped at up to $5.10 for each generic drug and up to $12.65 for each brand-name drug — a fraction of what many people without the subsidy pay for the same medications.

On top of the reduced copays, Extra Help typically covers your full Part D premium up to your region’s benchmark amount and eliminates your annual deductible entirely, so your out-of-pocket costs start low and stay low from January 1st.

There’s also a major additional protection: once your total drug spending for the year crosses the catastrophic coverage threshold, your cost-sharing drops to $0 for the rest of the year. And if you receive Extra Help, you are also protected from the Part D late enrollment penalty that normally applies to people who go without creditable drug coverage for an extended period.

How to Apply

You can apply for Extra Help several ways:

• Online at ssa.gov/extrahelp
• By phone, by calling the Social Security Administration
• In person at your local Social Security office

A helpful feature of the Social Security application is that it also functions as a referral to your state’s Medicare Savings Program — so in many cases, applying for Extra Help can kick off a review for MSP assistance (which can help cover your Part B premium) at the same time, without needing to fill out two completely separate applications.

Before you apply, gather documentation such as:

• Recent income records (Social Security award letters, pay stubs, pension statements)
• Bank statements for checking and savings accounts
• Statements for any stocks, bonds, mutual funds, or other investments

Having these on hand makes the application faster and reduces the chance you’ll need to follow up with additional paperwork later.

What Happens After You Apply

Once you’re approved, your Extra Help coverage generally continues through the end of the calendar year, even if your income or resources change slightly during the year. This gives you some stability instead of having your subsidy level fluctuate every time you get a small cost-of-living increase.

Social Security does conduct periodic redeterminations, and certain events can trigger an earlier review, such as a significant change in income, receiving an inheritance, or a change in your Medicaid or SSI status. If you’re selected for redetermination, you’ll receive a notice explaining what information you need to provide and by when — it’s important to respond by the deadline to avoid a gap or loss of your subsidy.

Frequently Asked Questions

Does Extra Help cover Part B or only Part D?

Extra Help is specifically for Part D prescription drug costs — it does not reduce your Part B premium or cost-sharing. If you also need help with Part B premiums or other Medicare costs, you’ll want to look into a Medicare Savings Program (MSP), which is a separate but related benefit.

What’s the difference between Extra Help and a Medicare Savings Program?

Extra Help lowers your Part D (prescription drug) costs, while a Medicare Savings Program is a state-run benefit that can pay your Part B premium and, depending on the specific MSP category, potentially other cost-sharing as well. Many people qualify for both at once, and applying for one can prompt a review for the other.

Can I still choose my own Part D plan if I get Extra Help?

Yes. Extra Help doesn’t lock you into a specific plan — you can still shop for and choose any Part D plan available in your area during open enrollment. Just keep in mind that if you pick a plan with a premium above your region’s benchmark amount, you may owe a small difference out of pocket even with the subsidy.

Bottom Line

If your income and resources fall within the 2026 limits, Medicare Extra Help can turn Part D prescription costs from a real financial burden into a minor monthly expense. Because the exact dollar thresholds are adjusted periodically, always confirm the current limit on Medicare.gov or ssa.gov before assuming you don’t qualify — and remember that having Medicaid, SSI, or an MSP already qualifies you automatically, no separate application needed.