Prescription drug costs can be a significant burden, especially if you’re on a fixed or limited income. Fortunately, Medicare has an “Extra Help” program to make costs more manageable. So, who qualifies for Extra Help Medicare?
This article explains all the eligibility details so you’ll know if you or a loved one can benefit.
Understanding Extra Help: A Lifeline for Medicare Prescription Drug Costs
“Extra Help,” officially known as the Part D Low-Income Subsidy (LIS), provides assistance programs for prescription costs. It eases the strain of prescription drug costs by helping pay for premiums, deductibles, and even the cost of each prescription. This Medicare savings program might be what you need if you are struggling with these expenses.
Who Automatically Qualifies for Extra Help?
Some folks automatically qualify for Extra Help, so they don’t have to apply. If you are enrolled in certain programs, you may qualify for Medicare Extra Help:
- Full Medicaid Coverage: You automatically qualify for full Medicaid coverage. This recognizes that your financial needs are likely significant, so it provides you with immediate access to Extra Help benefits.
- Help with Medicare Part B Premiums: If your state government helps pay premiums for Medicare Part B (which covers doctor visits and outpatient services) through a Medicare Savings Program, you are automatically enrolled.
- Social Security Supplemental Security Income (SSI) Benefits: This program is aimed at those with limited income and resources. If you receive SSI benefits, you’ll automatically get Extra Help because it’s understood that you likely meet the financial requirements.
You’ll receive a letter in the mail about your Extra Help. It will outline your copayment amounts and provide information about your newly selected Medicare drug plan if you aren’t already enrolled.
Who Should Apply if They Don’t Qualify Automatically?
Even if you don’t automatically qualify for Extra Help, you may still be eligible. It all comes down to your income and resources, with income limits changing each year to adjust for the cost of living. Here’s what those limits look like in 2024:
| Your situation | Income limit | Resource limit |
|---|---|---|
| Individual | $22,590 | $17,220 |
| Married couple | $30,660 | $34,360 |
Don’t lose hope if your income or resources are slightly higher. You may still qualify for partial Extra Help benefits, which can offer valuable assistance. There are exceptions to “income,” so visit the HI 03001.005 Medicare Part D Extra Help (Low-Income Subsidy or LIS) page on the Social Security website for the complete list.
The latest income thresholds for all states and household sizes are found on the Department of Health and Human Services’ HHS Poverty Guidelines for 2024. Alaska and Hawaii have different income limits because the cost of living is typically higher. Consider these factors when joining Medicare.
How to Apply for Extra Help: Getting the Help You Need
If you think you might be eligible but don’t qualify automatically, you should apply. Applying is simple, and you have a few options:
- Online: The fastest way is to apply online directly through the Social Security Administration. Visit socialsecurity.gov/i1020 to get started.
- Phone: You can apply for Extra Help over the phone. Call the Social Security Administration at 1-800-772-1213 to speak with a representative and walk through the application. You can also call this number to help with your MSP application.
- In Person: You can also apply in person. Find your local Social Security office on SSA.gov. It’s often helpful to make an appointment to minimize wait times.
They’ll need information about your financial situation, so be prepared. You’ll need things like your bank statements and tax returns. Having those handy makes the process smoother.
Benefits of Extra Help: More Than Just Financial Assistance
Those who qualify for Extra Help could potentially pay no Medicare drug plan premiums or deductibles. Extra Help caps your copayment for medications: no more than $11.20 in 2024 for each brand-name drug and $4.50 for each generic drug. This is a big relief for many people who take expensive medications regularly.
Plus, it will be applied retroactively from your application date if approved. Extra Help gives you a quarterly Special Enrollment Period for Medicare Part D, running from January to September. During these periods, you can change your drug plan, which others can only do during the annual Open Enrollment period (from October 15th to December 7th). It also means no late enrollment penalty for Medicare Part D if you join a plan later.
Real-Life Example
Mary, a 68-year-old retired teacher, found her prescription costs rising every month. Managing those bills took more work on her limited retirement income. Mary learned about Extra Help from a friend and discovered she met the income and resource limits.
Applying online was straightforward. Mary gets significant help with her prescriptions, freeing up some of her income for other needs. This allowed Mary to enjoy her retirement and spend less time worrying about how to pay for her medication.
If You Are Enrolled: Reviewing Eligibility for Continued Support
After you’re enrolled, Social Security will double-check every year (usually around the end of August) that you still meet the income and resource guidelines. This ensures you’re still eligible and getting your full benefit amount. They’ll reach out by sending you a form in the mail.
If you are selected, take your time to fill it out accurately and send it back within 30 days. This doesn’t mean your Extra Help will be reduced or stopped. Sometimes, based on your income and resource information, you can get more support, but other times, nothing will change. Returning the form within 30 days is important so your coverage doesn’t lapse. Your Extra Help will likely stay the same for the year until this review happens again.
Many people with limited incomes and resources can get financial relief through Extra Help, which allows them to get their needed medications without sacrificing basic necessities or depleting their savings.
FAQs about Who Qualifies for Extra Help Medicare
FAQ 1: What is the Income Limit for SSA Extra Help 2024?
In 2024, the annual income limit for Extra Help for an individual is $22,590. For married couples living together, the income limit is $30,660.
FAQ 2: How Do You Qualify for $144 Back From Medicare?
This refers to the Low-Income Subsidy “giveback” benefit, which can reduce Part B and/or Part D premiums for individuals enrolled in a Medicare Savings Program. The amount can vary, and the qualification depends on meeting specific income and asset criteria, so contact the Social Security Administration for guidance.
FAQ 3: Does Medicare Extra Help Expire?
Extra Help doesn’t have an expiration date, but your eligibility will be reviewed annually, usually around August, to make sure your financial situation still qualifies you. You must fill out and return a review form each year to maintain the benefits.
FAQ 4: When Did Medicare Extra Help Start?
Extra Help was implemented in 2006 as part of the Medicare Modernization Act of 2003. This law brought significant changes to Medicare, including Medicare Part D and the Extra Help program, to make prescription drug coverage more accessible and affordable.
Conclusion
Extra Help is an incredibly helpful program that makes prescriptions more affordable. Whether you are automatically qualified through other government programs like Medicaid or need to apply based on income and resources, Extra Help can save you hundreds—if not thousands—on your prescriptions yearly.
There are multiple ways to apply, so check out the eligibility guidelines. Apply if you think you or a loved one might be eligible. It may be a true game-changer in affording necessary medications. Don’t let the stress of prescription costs overshadow your health. Take a step toward getting the support you deserve.