LOW-INCOME SUBSIDY - MEDICARE EXTRA HELP PROGRAM
What to Know About Medicare Extra Help:
- The Medicare Extra Help Program, also called the Part D Low-Income Subsidy, helps Medicare beneficiaries with low income and resources pay for the cost of their prescription drugs and prescription drug coverage.
- To qualify for Extra Help, you must be on Medicare and living in the U.S. with income and financial resources below a certain annual threshold.
- Many people may qualify for Extra Help without realizing it.
- You can apply for the Medicare Extra Help Program through the Social Security Administration online, over the phone or in-person, when restrictions allow.
The Medicare Extra Help Program, also called the Part D Low-Income Subsidy, helps Medicare beneficiaries with low income and resources pay for the cost of their prescription drugs and prescription drug coverage. This benefit is worth an estimated $5,000 per year, according to the Social Security Administration.
Many people may qualify for Extra Help without realizing it. To qualify for Extra Help, you must be on Medicare Part A and/or Part B and living in the U.S. with income and financial resources below a certain annual threshold. Here we explain what the Extra Help Program is, who qualifies and how to apply if you do.
What is the Medicare Extra Help Program?
“The Medicare Extra Help Program is a federal program that’s designed to help those who have limited income and resources pay for Medicare prescription drug program costs, such as premiums, deductibles and coinsurance payments,” says Robin Saks Frankel, Personal Finance Expert of Forbes Advisor. Under the Medicare Extra Help Program, you also won’t need to pay the Part D late enrollment penalty that is imposed for not enrolling in a prescription drug plan when you’re first eligible.
When you receive Extra Help, your drug plan ensures you never pay more than the Low Income Subsidy coverage cost limit. In 2022, this is no more than $3.95 for each generic or $9.85 for each brand-name covered drug, Saks says.