How to Lower Your Medicare Costs with Extra Help and Savings Programs
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November 10, 2025
For many retirees Medicare is a lifeline, but it’s not always cheap. Premiums, copays, and prescription costs can add up fast, especially if you’re living on a fixed income. What many people don’t realize is that there are federally funded programs designed specifically to help lower those costs. These programs can cover premiums, reduce deductibles, and even make prescriptions affordable again. Unfortunately, millions of beneficiaries never apply simply because they don’t know these programs exist.
If you’re enrolled in Medicare (or about to be), here’s how you can take advantage of Extra Help and other Medicare Savings Programs to keep more money in your pocket.
What “Extra Help” Actually Means
“Extra Help” is exactly what it sounds like, a federal program that helps people pay for their Medicare Part D prescription drug coverage. It’s also called the Low-Income Subsidy (LIS), and it’s managed through the Social Security Administration (SSA).
This program helps cover the costs of your monthly Part D premium, your annual deductible, and most of your copayments for medications. Depending on your income and resources, you may qualify for either full or partial Extra Help.
Here’s what that looks like in real life:
If you currently pay around $45 per month for your drug plan, plus $10 or more per prescription, Extra Help could reduce that premium to $0 and drop your copays to just a few dollars. Over a year, that can save hundreds (even thousands) in medication costs.
The SSA reviews your income, savings, and other resources when you apply, and those limits are adjusted annually to reflect inflation. Even if you think you make too much, it’s worth checking because eligibility expanded recently, and more people now qualify than before.
I'm on a fixed income and struggling to afford my medications. What's this Extra Help program I've heard about for Medicare Part D?
The Medicare Extra Help Program, also called LIS, is a program that can help to reduce prescription drug costs. If you are on Medicaid through the state, you will be automatically enrolled in the Extra Help program. If not, you will need to apply, which is a pretty simple application. There are income and asset limits to be able to qualify. In 2025 the annual income limit is $23,475 for an individual and $31,275 for married couples. If you need help applying for the program, we are happy to assist. You can contact us directly.Medicare Savings Programs: Help for Parts A and B
While Extra Help focuses on prescription drugs (Part D), the Medicare Savings Programs (MSPs) help cover the medical side of things, Part A (hospital insurance) and Part B (medical insurance) costs. These are state-run programs funded by Medicaid but available to many Medicare beneficiaries who don’t have full Medicaid coverage.
There are four main types of Medicare Savings Programs, and each one helps in different ways. The Qualified Medicare Beneficiary (QMB) program is the most comprehensive; it can pay for your Part A and B premiums, as well as deductibles and coinsurance. People in this program typically pay little to nothing for Medicare-covered care.
The Specified Low-Income Medicare Beneficiary (SLMB) and Qualifying Individual (QI) programs both help pay for the monthly Part B premium. The Qualified Disabled and Working Individuals (QDWI) program assists certain disabled individuals who have returned to work and need help keeping their Part A coverage.
A simple way to remember it:
If Extra Help supports your drug costs, Medicare Savings Programs support your medical and hospital costs.
Who Qualifies and How to Apply
Eligibility for these programs is based on income and financial resources, such as savings and investments. The limits vary slightly from state to state, but they’re generally higher than many people expect. Even if you don’t think you qualify, it’s worth finding out because the income thresholds rise each year.
To apply for Extra Help, you can visit ssa.gov/extrahelp and complete a quick online application. For Medicare Savings Programs, you’ll need to contact your state Medicaid office, they handle applications and can tell you which programs are available locally.
It’s worth noting that if you qualify for a Medicare Savings Program, you’re usually automatically enrolled in Extra Help as well, giving you coverage for both medical and prescription expenses.
You’ll typically need to provide documentation of income, bank accounts, and assets, but the process is simpler than many expect. And once approved, your benefits can renew automatically each year as long as your financial situation doesn’t change significantly.
Other Ways to Save on Medicare
Beyond Extra Help and Medicare Savings Programs, there are additional ways to cut your costs:
Some states offer State Pharmaceutical Assistance Programs (SPAPs) to help residents pay for prescription drugs not fully covered under Part D. Others provide assistance with premiums or copayments for certain conditions. Drug manufacturers also run patient assistance programs that can help cover the cost of expensive brand-name medications.
If you qualify for coordinated care or long-term assistance, PACE (Program of All-Inclusive Care for the Elderly) can help reduce medical and support costs while providing comprehensive services for seniors who wish to stay at home rather than move into a facility.
Also, make full use of Medicare’s preventive care benefits, annual wellness visits, screenings, and vaccinations are fully covered, which helps you stay healthy and avoid higher costs later.
Finally, one of the easiest ways to save is to compare your plan options each year during Medicare Open Enrollment (October 15 – December 7). Many beneficiaries discover that a new plan can offer lower premiums, better drug coverage, or additional benefits for the same price.
Why These Programs Matter
Healthcare costs are one of the biggest worries for retirees, but they don’t have to be. Programs like Extra Help and the Medicare Savings Programs exist to make sure cost isn’t a barrier to care. Once enrolled, many beneficiaries see hundreds of dollars in savings each month, money that can make a big difference in everyday life.
Understanding and using these programs isn’t just about saving money; it’s about gaining peace of mind. When you know your prescriptions are covered and your premiums are manageable, it’s easier to focus on what truly matters, staying healthy and living well.
If you’re unsure where to start or need help navigating eligibility, speaking with a licensed Medicare agent can make things simple. You can find experienced professionals on Medicare Agents Hub, where agents specialize in helping beneficiaries identify the savings programs they qualify for, so you can spend less time worrying about paperwork and more time enjoying your retirement.