Medicare

Extra Help (Low-Income Subsidy)

Extra Help (also called the Low-Income Subsidy or LIS) dramatically lowers prescription drug costs for Medicare beneficiaries with limited income and resources.

Last reviewed: May 2026 · Editorial methodology

Definition

Extra Help, formally known as the Low-Income Subsidy (LIS), is a federal assistance program that reduces Medicare Part D prescription drug costs for beneficiaries with limited income and financial resources. Full Extra Help eliminates the Part D premium (up to a benchmark amount), eliminates the Part D deductible, and caps copayments at approximately $4.90 for generics and $12.15 for brand-name drugs in 2026. Partial Extra Help reduces (but does not eliminate) premiums and provides a reduced deductible. The 2026 income eligibility limit for full Extra Help is approximately $22,590 for an individual and $30,660 for a married couple, with resource limits of $17,220 (individual) and $34,360 (couple). Automatic qualification for Extra Help occurs for individuals enrolled in Medicaid, Medicare Savings Programs (QMB, SLMB, QI), or Supplemental Security Income (SSI). Others can apply directly through the Social Security Administration or their State Medicaid agency. Extra Help beneficiaries also receive special enrollment periods to switch Part D plans mid-year, giving them the flexibility to access the most cost-effective plan for their medications.

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Glossary definitions are educational. Always check your own policy language — insurers can define common terms differently from one another. When in doubt, request a written explanation from your agent.

Related terms

Medicare Part DMedicare Part D covers prescription drugs and features a $2,100 out-of-pocket cap in 2026, ending the coverage gap that previously left beneficiaries with full costs.QMB (Qualified Medicare Beneficiary)QMB status eliminates virtually all Medicare out-of-pocket costs for qualifying beneficiaries and providers cannot bill QMB-enrolled patients for cost-sharing.SLMB (Specified Low-Income Medicare Beneficiary)SLMB covers the monthly Part B premium for qualifying low-income Medicare beneficiaries whose income exceeds the QMB limit but remains below 120% of FPL.Dual EligibleDual-eligible beneficiaries receive Medicare for primary coverage and Medicaid for cost-sharing assistance, long-term care, and services Medicare does not cover.Medicare Savings ProgramsMedicare Savings Programs can eliminate Part B premiums and reduce other Medicare cost-sharing for qualifying low-income individuals.Donut Hole (Part D Coverage Gap)The Part D coverage gap (donut hole) was effectively closed by the Inflation Reduction Act, which capped out-of-pocket drug costs at $2,000 in 2025, rising to $2,100 in 2026.

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Source: Cover Forge USA editorial team|Last verified: May 2026|Methodology
Definitions are educational and may be simplified. Always refer to your policy contract and consult a licensed agent for terms that affect coverage decisions.
CF

Cover Forge USA Editorial Team

Editorial Lead

This article was researched and written by the Cover Forge USA editorial team against federal sources (NAIC, CMS, FEMA, DOL, SSA, state DOIs) and standard policy forms. Bylines organize content by topic — they do not assert individual licensure. See our editorial-policy for details.

Reviewed June 2026

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