Part D Low-Income Subsidy: What It Covers and Who Qualifies

When you're on Medicare Part D, the prescription drug coverage plan for people enrolled in Medicare. Also known as Medicare drug plan, it helps pay for medications—but costs can still add up. That’s where the Part D low-income subsidy, a federal program that reduces out-of-pocket costs for eligible Medicare beneficiaries. Also known as Extra Help, it steps in to make drugs affordable. If your income and resources are limited, this program can slash your monthly premiums, eliminate your deductible, and cap what you pay for each prescription—sometimes to just a few dollars.

The Part D low-income subsidy, a federal program that reduces out-of-pocket costs for eligible Medicare beneficiaries. Also known as Extra Help, it isn’t just for people living below the poverty line. Many qualify with incomes up to 150% of the federal poverty level. For example, a single person earning under $22,590 a year (in 2024) and with resources under $17,220 could get full benefits. Even if you don’t qualify for full help, partial assistance is available. The program covers all Part D plans, so you can keep your current pharmacy or switch without losing support. It also protects you from the coverage gap—commonly called the donut hole—so you never pay more than a set amount for your meds, even when you hit that stage.

People on Medicaid, a joint federal and state program that helps with medical costs for those with limited income. Also known as state health assistance, it usually get the subsidy automatically. The same goes for those getting Supplemental Security Income (SSI). But many others don’t realize they qualify because they think they make too much or own too much—like a car or a small savings account. The rules are more flexible than most assume. You don’t need to be broke to get help. And applying is simple: you can do it online through Social Security, over the phone, or in person. Once approved, the savings roll back to when you first qualified, so you won’t miss out on past savings.

What you save isn’t theoretical. People using this subsidy often pay under $5 per prescription instead of $50 or more. That’s huge for those taking multiple meds for diabetes, high blood pressure, or heart conditions—exactly the kind of drugs covered in posts here about perindopril erbumine, ezetimibe, or metformin. If you’re managing chronic illness on a fixed income, this subsidy isn’t just helpful—it’s essential. And it’s not just about the price tag. Lower out-of-pocket costs mean fewer people skip doses or split pills to make their meds last. That’s why this program directly ties into the real-world challenges discussed in posts about medication adherence, drug interactions, and long-term treatment safety.

There’s no catch. No waiting period. No hidden fees. And you don’t have to reapply every year unless your situation changes. The government automatically checks your eligibility each year based on your tax and benefit data. But if you think you qualify and haven’t applied, you’re leaving money on the table. The savings add up to hundreds—or even thousands—of dollars a year. That’s money you can use for groceries, transportation, or other health needs. The posts below cover everything from how drugs work in your body to how to save on prescriptions. This subsidy is one of the most powerful tools you have to make those meds actually affordable. If you’re on Medicare and struggling with drug costs, this is where you start.