Short answer: Lower-income beneficiaries can get major help. Extra Help (the Part D Low-Income Subsidy) cuts prescription costs, and Medicare Savings Programs help pay Part B premiums and other costs. In 2026, Extra Help covers full premiums (up to the benchmark) and caps drug copays at $5.10 generic and $12.65 brand.
Medicare offers several programs to help people with limited income and resources. Extra Help, also called the Part D Low-Income Subsidy (LIS), lowers prescription-drug costs. Since 2024 there is a single, expanded benefit: it covers your Part D premium up to the regional benchmark, eliminates the deductible, and in 2026 caps copays at about $5.10 for generics and $12.65 for brand-name drugs. Eligibility is generally for those with income below 150% of the federal poverty level and limited resources.
Medicare Savings Programs (MSPs) are run by states and help pay Medicare costs such as the Part B premium, and for some enrollees, deductibles and coinsurance. Qualifying for an MSP also automatically qualifies you for Extra Help. Income and resource limits vary by program and state, and the rules are more generous than many people expect.
Other help includes Medicaid for those who qualify, and state pharmaceutical assistance programs. Because the savings can be substantial, it is worth applying through the Social Security Administration (for Extra Help) or your state Medicaid office (for MSPs) even if you are unsure you qualify.