Medicare Part D

Low-Income Subsidy trims Medicare drug bills in Williamsport

Williamsport, Pa. — If you take prescription drugs and live on a modest income, there's a Medicare program that could quietly take a big weight off your budget. It's called Extra Help, and many people who qualify never sign up simply because no one told them about it.

Here's what Extra Help is, who can get it, and how to apply without making the common mistakes.

What Extra Help actually is

Extra Help — sometimes called the Low-Income Subsidy, or LIS — is a federal program run by Social Security and Medicare. It helps people with limited income and savings pay for their Medicare Part D prescription drug coverage.

If you qualify, Extra Help can lower or eliminate your Part D premium and deductible, and it caps what you pay at the pharmacy counter at small, set amounts for covered drugs. As of 2024, Extra Help was expanded so that everyone who qualifies now gets the full benefit — there's no longer a partial version.

That matters heading into 2027. The Part D annual out-of-pocket cap is $2,100 in 2026 and $2,400 in 2027, and the Part D maximum deductible is $615 in 2026 and $700 in 2027. Extra Help sits on top of those protections and pushes your costs down even further.

Who qualifies in 2027

Extra Help has two tests: an income test and a resource (savings) test. Both are set by the federal government, not by Pennsylvania.

To qualify, you generally need to:

• Have Medicare Part A and/or Part B,
• Live in one of the 50 states or D.C., and
• Have income and resources under the federal limits.

For 2025, the income limit is about 150% of the federal poverty level, and resource limits are around $17,600 for an individual and $35,130 for a married couple living together. The 2026 and 2027 figures are updated each year — always check medicare.gov or ssa.gov for the current numbers before you decide you don't qualify.

Important: many people assume they make too much or have too much in the bank. The rules leave out some things you might expect to count, like your home, your car, and household items. Don't rule yourself out based on a guess.

You're automatically enrolled in Extra Help if you have Medicare and also have Medicaid, get Supplemental Security Income (SSI), or are in a Medicare Savings Program. If that's you, you don't need to apply — but you should still check your mail for the notice Medicare sends.

Common mistakes to avoid

A few missteps trip people up every year:

• Not applying because you "probably won't qualify." The only way to know is to apply. It's free, and there's no penalty for asking.
• Confusing Extra Help with a Medicare Savings Program. They're different. Extra Help pays for drug costs; Medicare Savings Programs (run through your state) help pay Part A and Part B costs. Many people qualify for both.
• Forgetting to pick a Part D plan. Extra Help lowers costs inside a Part D drug plan or a Medicare Advantage plan with drug coverage. You still need to be enrolled in one. If you don't choose, Medicare may auto-enroll you in a plan that isn't the best fit for your prescriptions.
• Not updating your information. If your income, marriage status, or household changes, tell Social Security. Your benefit could change too.

How to apply

You can apply for Extra Help in three ways, and it's free every time:

1. Online at ssa.gov/extrahelp — this is usually the fastest. 2. By phone at 1-800-772-1213 (Social Security) to request a paper application or apply over the phone. 3. In person at your local Social Security office.

You do not need a lawyer, an agent, or a paid service. If anyone asks you to pay to apply, that's a red flag.

After you're approved, you'll get a letter explaining your benefit. You can then use Medicare's Plan Finder at medicare.gov to compare Part D options — Extra Help works with any Part D plan in your area.

What this looks like in Williamsport

Williamsport is in Lycoming County, where Medicare beneficiaries have a range of stand-alone Part D drug plans and Medicare Advantage plans that include drug coverage to choose from during the Annual Enrollment Period (Oct. 15 – Dec. 7, 2026) for coverage that starts Jan. 1, 2027. The 2027 lineup is laid out in each plan's Annual Notice of Change and on Medicare.gov's Plan Finder. Extra Help doesn't limit which plan you can choose — it lowers your costs inside whichever plan you pick.

Pennsylvania also runs PACE and PACENET, state programs that help older residents with prescription costs. These are separate from Extra Help, and in some cases you can use them together. Your local State Health Insurance Assistance Program (SHIP) counselor — in Pennsylvania it's called APPRISE — can walk you through what fits your situation, at no cost.