Learn how Medicare Extra Help (LIS) can reduce your Medicare Part D prescription drug costs. Find out who qualifies, how to apply, and how the Low-Income Subsidy helps lower premiums, deductibles, and copayments.
Medicare Extra Help (LIS): Save on Prescription Costs with the Low-Income Subsidy Program
If you have Medicare and need assistance paying for your prescription medications, the Medicare Extra Help (LIS) program may significantly reduce your out-of-pocket costs. Also known as the Low-Income Subsidy, this federal program is designed to help qualifying individuals save on Medicare Part D premiums, deductibles, and prescription drug copayments. For many people, the savings can total thousands of dollars each year, making Extra Help one of the most valuable financial assistance programs available to Medicare beneficiaries.
What Is Medicare Extra Help (LIS)?
Medicare Extra Help (LIS) is a cost-saving program administered by the Social Security Administration (SSA) in partnership with the Centers for Medicare & Medicaid Services (CMS). It is specifically intended for individuals with limited income and resources who need help paying for their Medicare Part D prescription drug coverage.
If you qualify for the Extra Help program, you may receive benefits such as:
Reduced or $0 monthly Part D premiums
Lower or eliminated annual deductibles
Significantly reduced copayments or coinsurance
Protection from the Part D coverage gap (donut hole)
Year-round Special Enrollment Period for changing Part D plans
The exact level of savings depends on your household income and resource limits, including savings, stocks, and certain investments. Many people qualify without realizing it, especially those who already receive Medicaid, SSI, or participate in certain state assistance programs.
Who Qualifies for Medicare Extra Help?
Eligibility for Medicare Extra Help (LIS) is based on income and financial resources. While limits may change annually, the program typically considers:
Total household income
Savings and financial assets, such as money in bank accounts, IRAs, or investment accounts
Living situation, such as whether you are single, married, or living with dependents
Automatic qualification may occur if you:
Receive Medicaid
Receive Supplemental Security Income (SSI)
Receive Medicare Savings Program benefits
Even if you do not automatically qualify, you can still apply and may be eligible for full or partial financial assistance.
How to Apply for Medicare Extra Help (LIS)
Applying for the Low-Income Subsidy is free, simple, and available through multiple methods. You can apply online, by phone, or in person.
Steps to Apply:
Visit the official Social Security website at SSA.gov/extrahelp.
Click on “Apply for Extra Help with Medicare Prescription Drug Plan Costs.”
Complete and submit the online application form.
You may also apply by:
Calling Social Security at 1-800-772-1213
Visiting your local Social Security office
Requesting a paper application by mail
Once your application is approved, you’ll receive an official notice outlining your Extra Help status, the level of assistance you qualify for, and instructions for selecting or updating your Medicare Part D plan.
Speak to a Licensed Sales Agent
If you would like help exploring your Medicare Advantage or Part D plan options after receiving Extra Help, a licensed sales agent can guide you through the available choices.