Savings Tips
Medicare Savings Programs: Could You Qualify for Extra Help?
Millions of seniors qualify for programs that help pay Medicare costs but don't know it. Find out if you're eligible for Extra Help and savings programs.
Did you know that millions of Medicare beneficiaries qualify for programs that help pay their premiums, deductibles, and prescription drug costs — but never apply? Medicare Savings Programs (MSPs) and the Extra Help (Low-Income Subsidy) program can save qualifying individuals thousands of dollars each year. This guide explains each program, the eligibility requirements, and how to apply.
Medicare Savings Programs (MSPs)
Medicare Savings Programs are state-administered programs that help pay your Medicare premiums and, in some cases, deductibles and coinsurance. There are four levels of MSP, each with different income and asset limits.
Income Limits Are Higher Than You Think
Many people assume they earn too much to qualify. But MSP income limits are fairly generous — an individual earning up to about $1,715/month (approximately $20,580/year) may qualify for the QI program. Limits are even higher in Alaska and Hawaii.
Extra Help (Low-Income Subsidy)
Extra Help is a federal program that helps pay Part D prescription drug costs. If you qualify, Extra Help can save you an average of $5,300 per year.
What Extra Help Covers
- Part D monthly premium — reduced to $0 or a small amount
- Annual Part D deductible — eliminated or reduced
- Prescription copays — reduced to $0–$11.20 per prescription
- No coverage gap (donut hole) — you skip straight to catastrophic coverage pricing
Extra Help Eligibility (2026)
Resources include savings accounts, stocks, bonds, and real estate (not your primary home). Your home, car, personal belongings, burial plot, and up to $1,500 in burial funds are not counted.
How to Apply
For Medicare Savings Programs
Disclaimer: SeniorPop is not affiliated with Medicare, Medicaid, or any government agency. Benefit availability varies by plan and location. Contact a licensed Medicare advisor for plan-specific information.