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Low Income Subsidy (LIS) Medicare Program

The Low-Income Subsidy (LIS) — also called Extra Help — is a federal Medicare program that helps people with limited income and resources pay for their prescription drug costs under Medicare Part D. It’s administered jointly by the Social Security Administration (SSA) and the Centers for Medicare & Medicaid Services (CMS).
 
What the LIS Program Covers
The LIS program reduces or eliminates several costs associated with Medicare Part D:
  • No monthly premiums for standard drug plans.
  • No annual deductible for prescription coverage.
  • Low copayments: In 2025, no more than $12.15 for brand-name drugs and $4.90 for generics.
  • $0 copays after reaching the $2,000 catastrophic coverage threshold in 2025.
  • No late enrollment penalty for joining Part D late .
The average value of Extra Help is estimated at about $5,900 per year per person.
 
Who Automatically Qualifies
You’re automatically enrolled in LIS if you:
  • Receive Medicaid and Medicare (“dual eligible”).
  • Get Supplemental Security Income (SSI).
  • Are enrolled in a Medicare Savings Program (QMB, SLMB, or QI) .
Automatic enrollees are notified by a letter from CMS confirming their Extra Help status.
 
To qualify for Medicare’s Extra Help (Low‑Income Subsidy) program in 2026, you must have limited income and resources and be enrolled (or eligible to enroll) in a Medicare Part D prescription drug plan. The Extra Help program, also known as the Low‑Income Subsidy (LIS), helps Medicare beneficiaries pay for their Part D premiums, deductibles, and drug copayments.
 
Who Automatically Qualifies
You are automatically enrolled in Extra Help if you:
  • Receive Medicaid (either full or partial coverage).
  • Are enrolled in a Medicare Savings Program (which helps pay Medicare Part B premiums).
  • Receive Supplemental Security Income (SSI) benefits .
Automatic enrollees are notified by CMS (Centers for Medicare & Medicaid Services) each year confirming their continued eligibility.
 
2026 Income and Resource Limits
The official 2026 Extra Help income and asset limits are expected to remain close to the 2025 thresholds, with slight adjustments when the Federal Poverty Level (FPL) is updated in early 2026. Based on the most recent available data, people are likely to qualify if their finances are below approximately these levels:
 
Eligibility extends up to 150% of the federal poverty level (FPL). Adjustments are made for residents of Alaska and Hawaii.
 
How to Apply
If you’re not automatically enrolled, you can apply:
  • Online through the [Social Security Administration (SSA)** website.
  • In person or by submitting a paper application through your local SSA office.
After applying, most people receive a decision letter within three weeks .
Additional Benefits
  • Access to Special Enrollment Periods (SEPs) three times per year (Jan–Sept), allowing plan changes outside the standard Medicare open enrollment window.
  • May automatically qualify you for a Medicare Savings Program, which can help pay other Medicare costs, such as Part A and B premiums .
Summary
The Low-Income Subsidy (Extra Help) is one of Medicare’s most valuable assistance programs. It drastically reduces the cost of prescription drugs and helps protect low-income Medicare beneficiaries from financial hardship. In 2025, anyone with income up to 150% of the FPL and limited assets may qualify, ensuring affordable access to essential medications .