Medicare Part D

Extra Help & Part D in Mobile, Alabama 2027

MOBILE, Ala. — If prescription costs are stretching your budget, there's a federal program you may not be using: Extra Help, also called the Low-Income Subsidy (LIS). It's run by Social Security and Medicare, and it can dramatically lower what you pay for Part D drug coverage — including your monthly premium, your deductible, and what you pay at the pharmacy counter.

Mobile seniors, here's what Extra Help actually does

Mobile is in Mobile County, where Part D plan choices are set at the county level. But Extra Help itself is a national program with the same income and resource rules everywhere. If you qualify, it follows you into whichever stand-alone Part D or Medicare Advantage drug plan you choose.

Why Extra Help matters more than ever in 2027

Medicare's drug benefit changed in a big way. As of 2025, the old "donut hole" coverage gap is gone, and Part D now works in three simpler phases. According to CMS:

• The annual out-of-pocket cap for Part D is $2,100 in 2026 and $2,400 in 2027.
• The maximum Part D deductible is $615 in 2026 and $700 in 2027.
• Anyone on Medicare can also opt into the Medicare Prescription Payment Plan, which spreads drug costs across the calendar year in monthly installments instead of paying a large bill at the pharmacy.

Extra Help sits on top of all this. For people who qualify, it pushes drug copays down to just a few dollars per prescription and can wipe out the Part D premium and deductible entirely, depending on the level of subsidy.

Who qualifies for Extra Help in 2027

Extra Help is based on two things: income and resources (savings and certain assets — not your house or car).

In general, to qualify you must:

• Have Medicare Part A and/or Part B,
• Live in one of the 50 states or D.C., and
• Have income and resources below the federal limits Social Security updates each year.

As of the most recent guidelines from the Social Security Administration, you may qualify with an income at or below 150% of the federal poverty level. Resource limits are separate and higher than many people assume — retirement accounts, a home, one vehicle, and burial funds up to certain amounts are not counted.

You are automatically enrolled in Extra Help if you:

• Have both Medicare and full Medicaid,
• Get help from a Medicare Savings Program, or
• Receive Supplemental Security Income (SSI).

If that's you, you don't need to apply. Everyone else has to file an application — and many people who would qualify never do.

How to apply from Mobile

There is no cost to apply, and applying will not affect any other benefits.

• Online: ssa.gov/extrahelp
• By phone: Social Security at 1-800-772-1213 (TTY 1-800-325-0778)
• In person: at a local Social Security office. Mobile has Social Security field offices serving the metro area; call first to confirm hours or set an appointment.
• Free local help: Alabama's State Health Insurance Assistance Program (SHIP), run through the Alabama Department of Senior Services, offers free, unbiased Medicare counseling. You can also contact the Area Agency on Aging serving Mobile County through the South Alabama Regional Planning Commission.

If Social Security approves you, they'll send a letter explaining your subsidy level. You can then join a Part D or Medicare Advantage drug plan — or switch plans — using a Special Enrollment Period tied to Extra Help.

Enrollment periods to keep in mind

Even outside of Extra Help, mark these dates:

• Annual Enrollment Period: October 15 – December 7. This is when anyone with Medicare can join, switch, or drop a Part D or Medicare Advantage plan.
• Medicare Advantage Open Enrollment: January 1 – March 31, for people already in a Medicare Advantage plan who want to change.

People with Extra Help generally have more flexibility to change plans during the year, but it's still worth reviewing your coverage each fall — plan formularies and pharmacy networks change annually.

A quick note on higher-income Medicare

At the other end of the income scale, IRMAA surcharges kick in for Part B and Part D premiums when income exceeds $109,000 for a single filer (2026, based on 2024 tax returns). That won't affect most Mobile households, but it's worth knowing if your income changed recently — you can ask Social Security for a reconsideration if a life event, like retirement, has lowered your income.