Medicare Extra Help 2026: Income Limits and What the Subsidy Pays

Medicare Extra Help — officially the Part D Low-Income Subsidy (LIS) — pays your prescription drug plan premium, wipes out the deductible, and caps what you pay per prescription at $5.10 for generics and $12.65 for brand-name drugs in 2026. To qualify in 2026, your income must be at or below roughly $23,475 a year for a single person ($31,725 for a married couple living together), with resources under $18,090 single or $36,100 married. The Social Security Administration estimates the benefit is worth about $5,700 a year on average.

If you’re on Medicare and money is tight, this is one of the highest-value programs you can apply for — and one of the most under-enrolled.

What Exactly Does Extra Help Pay For in 2026?

Cost Without Extra Help With full Extra Help
Part D monthly premium Varies by plan $0 (up to the benchmark amount)
Annual drug deductible Up to plan maximum $0
Generic prescriptions Plan copay/coinsurance No more than $5.10
Brand-name prescriptions Plan copay/coinsurance No more than $12.65

Two more features worth knowing. First, once your out-of-pocket drug spending hits the annual cap ($2,100 in 2026 for all Part D enrollees), covered drugs cost you nothing for the rest of the year — we explained that cap in Medicare Part D $2,100 Cap in 2026. Second, Extra Help enrollees get a Special Enrollment Period allowing plan changes outside the usual windows.

What Are the 2026 Income and Resource Limits?

Since 2024, there is a single level of Extra Help (the old "partial" tier was upgraded to full benefits). The 2026 limits work out to:

  • Income: at or below 150% of the federal poverty level — approximately $23,475/year ($1,995/month) for an individual, $31,725/year ($2,705/month) for a married couple living together. Slightly higher limits apply if you support other family members or live in Alaska or Hawaii.
  • Resources: at or below $18,090 (single) or $36,100 (married), counting bank accounts, stocks, and bonds — but not your home, one vehicle, personal belongings, or burial plots. A $1,500-per-person burial allowance is also excluded.

Not all income counts, either. SNAP benefits, housing assistance, and energy assistance don’t count against you.

Who Gets Extra Help Automatically?

You’re automatically enrolled — no application needed — if you have Medicare and any of the following:

  1. Full Medicaid coverage (dual eligibles — see Dual Eligible for Medicare and Medicaid in 2026)
  2. A Medicare Savings Program paying your Part B premium (covered in Medicare Savings Programs 2026)
  3. SSI benefits

Everyone else applies. If you’re in a Medicare Savings Program or close to those limits, apply for both — the income cutoffs are similar, and the combined savings routinely exceed $8,000 a year.

How Do You Apply?

Applying is free. Decisions typically arrive by mail within a few weeks. If approved, pick a Part D plan at or below the benchmark premium for your state so the subsidy covers the full premium — SSA or SHIP counselors (free at shiphelp.org) can identify benchmark plans.

What If You’re Denied?

You can appeal a denial through SSA, and you can reapply any time your income or resources drop. Note that a denial for being slightly over the limits is worth revisiting each year — limits rise annually with the poverty level, and your circumstances change.

FAQ

Does Extra Help work with Medicare Advantage?
Yes. It applies to the drug portion of a Medicare Advantage plan (MA-PD) the same way it applies to standalone Part D plans.

Does owning a home disqualify me?
No. Your primary residence is excluded from the resource test, as is one vehicle.

Do I have to reapply every year?
No, but SSA periodically reviews eligibility and may mail you a review form. Respond by the deadline or benefits can end.

Is Extra Help the same as the Medicare Savings Program?
No. Extra Help lowers drug costs (Part D); Medicare Savings Programs pay Part B premiums and sometimes cost-sharing. Many people qualify for both.