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Medicare Extra Help: This Little-Known Program Could Save You $6,000+ a Year

A little-known federal program could significantly reduce your Medicare prescription drug costs.

By Adam Palasciano

Edited by Laura Hohenstein

Updated Dec. 19, 2025

Prescription medications can become a big expense in retirement, especially for seniors on fixed incomes. The Medicare Extra Help program offers meaningful relief to those who qualify, yet many older adults may be unaware that these savings even exist. With the rising cost of living, this benefit can play a key role in planning for retirement and provide meaningful savings. Understanding who qualifies — and how the program works — can help you take advantage of its full value.

Here's what you need to know to determine whether this high-value program could reduce your annual drug costs.

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Medicare Extra Help Program explained

The Medicare Extra Help program is a federal benefit designed to make prescription drug coverage more affordable for eligible Medicare recipients. It helps reduce monthly premiums, annual deductibles, and prescription copays associated with Medicare Part D plans.

According to the Social Security Administration (SSA), the value of Extra Help is estimated at roughly $6,200 per year, which can dramatically reduce out-of-pocket drug expenses. Many retirees who qualify never apply because they assume their income or savings are too high. To determine eligibility, the SSA reviews your income, financial resources, and certain types of property, and requires applicants to complete Form SSA-1020.

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You'll need to meet the income and resource limits to qualify

To qualify for Extra Help, retirees must meet specific income guidelines. In 2025, the annual income limit is $23,475 for an individual or $31,725 for a married couple living together. The SSA notes that some retirees may still qualify even if their income exceeds these limits, particularly if they receive earnings from work, support other relatives in the home, or live in Alaska or Hawaii. Certain benefits — such as SNAP assistance, earned income tax credit payments, and housing aid — are not counted toward the income limit.

The program also has resource limits that determine eligibility. Individuals must have $17,600 or less in assets, while married couples living together must have $35,130 or less. Resources include bank accounts, investments, IRAs, bonds, mutual funds, and real estate other than your primary residence. Assets such as your home, vehicles, and life insurance policies do not count toward the resource limit.

What you need to know before applying for the Medicare Extra Help Program

Before applying, it's important to gather detailed information about your finances. The SSA uses this information to verify whether you qualify, and may compare your answers with data from other government agencies. If you are married and living with your spouse, you'll need to provide financial details for both individuals.

You'll need to gather information about all countable resources, such as checking and savings accounts, certificates of deposit, IRAs, stocks, mutual funds, bonds, and any real estate other than your home. You must also document monthly income from Social Security, pensions, rental income, Railroad Retirement, Veterans benefits, alimony, wages, and net earnings from self-employment. Preparing these records in advance can help streamline the process and reduce delays.

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How to apply for the Medicare Extra Help Program

Applying for Extra Help is simple and can be done in several ways. The fastest option is submitting the online application at SSA.gov/medicare/part-d-extrahelp, which guides you through each step.

You can also apply by calling Social Security at 1-800-772-1213 or by visiting your local Social Security office. Once submitted, the SSA reviews your application and notifies you if you qualify.

If you are approved, you can choose a Medicare Part D prescription drug plan that fits your needs. If you don't pick a plan, Medicare will automatically enroll you in one so you can begin receiving benefits. Even if you don't qualify for Extra Help, you can still sign up for a Part D plan to ensure you have prescription drug coverage.

How the Medicare Extra Help Program can provide meaningful savings

For eligible retirees, Extra Help may reduce the annual cost of prescription medications. The program covers a large portion of Part D premiums, deductibles, and copays, which can make drug costs predictable and easier to budget for.

These savings may help stretch retirement income further, especially for those managing chronic health conditions.

Bottom line

The Medicare Extra Help program is one of the most valuable savings opportunities available to retirees with limited income and resources. It can greatly reduce the financial strain of prescription medications and free up more money for essential living expenses.

If you think you may qualify, reviewing your financial details and completing the application could be a meaningful way to maximize your senior benefits and strengthen your long-term healthcare security.

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