What should you do if you can’t easily afford to pay for Medicare costs? Don’t worry – you have options. There are many federal and state programs available to provide financial assistance to seniors and others eligible for Medicare from low-income households who may need some support.

If you need help paying for Medicare premiums and other expenses, you can get assistance covering premiums, deductibles and coinsurance amounts across different parts of Medicare. Here’s how you can find and enroll in a Medicare assistance program that works for you.

Getting help paying your Part B premium

One of the most asked questions about Medicare financial assistance is “How can I get help paying for my Medicare Part B premium?” And it makes sense – Part B premiums change each year, and as a regular monthly payment, it can be hard to manage for those with an income limit. However, there are plenty of federal and state-run programs that can help, such as a Medicare Savings Program. You can even look into a dual-eligible special needs plan which combines your Medicare and Medicaid coverage in one place.

Getting help paying for Part D prescription drug plans

Unfortunately, Original Medicare doesn’t cover outpatient prescription drugs. To get prescription drug coverage, you must enroll in a separate Medicare Part D prescription drug plan.

But some of these plans can get costly – are there resources you can tap into for help? Absolutely. One option you can explore is a Medicare prescription drug assistance program. Some drug companies offer programs and benefits that will help you pay for medicines if you’re enrolled in Part D coverage, and Medicare makes it easy to find participating companies online. Also, select states run their own Part D assistance programs for prescriptions, drug plan premiums and other costs you may need help covering. In addition, you can look at programs run at the federal level, such as the Medicare Part D Extra Help program.

Programs for people who need help with Medicare costs

We’ve briefly touched on a few Medicare financial assistance options, but how do you know which one you should choose? How do you know if you qualify? Here are some of the most used programs to consider, how they help, eligibility criteria and how to apply.

The Extra Help program

Extra Help is a Medicare program run by the United States Social Security Administration (SSA) and the Centers for Medicare & Medicaid Services (CMS). Also known as the Low-Income Subsidy (LIS) program, Extra Help assists people from low-income households by paying for their Medicare drug coverage. This can include financial assistance covering premiums, deductibles, coinsurance and other costs.

Extra Help can be an impactful support option for people with limited resources or an income limit – but not many know about it. It’s estimated that around 3 million seniors and people with disabilities could benefit from enrolling in the Extra Help program.

Extra Help and Medicare Part D

Extra Help can help lower your Part D costs by paying for your Part D plan’s monthly premium, plus a significant amount of your prescription copays.

Does the Extra Help program cover Medicare Part B prescription costs?

While most prescription drugs are covered under Part D, some are covered under Part B of Medicare. The Extra Help program only helps with Part D costs, not any Part B costs you may be responsible for (including Part B monthly premiums). However, you might qualify for help with Part B costs through another program, like a Medicare Savings Program.

You can have Extra Help and a Medicare Advantage plan

Extra Help doesn’t just apply to standalone Part D plans – it can also apply to the portion of your Medicare Advantage plan that covers Part D prescription drugs. Medicare Advantage plans are private plans you can buy directly from an insurance company that cover Original Medicare (Parts A and B), Part D and extra benefits like vision, hearing and dental. Most Medicare Advantage plans include Part D drug coverage but not all. Make sure to check before enrolling.

Who qualifies for Medicare’s Extra Help program

To be eligible for Extra Help, you must meet certain income and resource requirements. Some people qualify for LIS automatically, and other people must apply.

You'll get Extra Help automatically if you already receive full Medicaid coverage, state-supported financial assistance for your Part B premiums or Supplemental Security Income (SSI) benefits.

You may be eligible for a low-income subsidy if:

  • You’re already enrolled in Original Medicare (Parts A and B)
  • You already have Part D coverage, like through a Medicare Advantage plan
  • You live in one of the 50 states or Washington, D.C.
  • Your combined assets (income and resources) are below a certain annual limit set by the IRS

Social Security Administration Extra Help income limits for 2025

As mentioned, the SSA sets financial requirements and income limits for Medicare’s Extra Help program. These limits can change each year, and they’re measured in two ways: income and resources. In 2025, these limits look like this for individuals and married couples currently living together.

Marital status Annual income limit Annual resource limit
Individuals $22,590 $17,600
Married couples $30,660 $35,130

What counts and doesn’t count as income

Your income is how much money you, and your spouse if you’re married, make in a calendar year. The following types of income are always counted:

  • Social Security benefits (including retirement and disability)
  • Wages and self-employment income
  • Pensions and annuities
  • Railroad Retirement benefits
  • Veterans benefits
  • Unemployment compensation
  • Alimony received
  • Rental income
  • Dividends and interest
  • Withdrawals from IRAs or 401(k)s (if taken as income)

For the Extra Help program, these things usually aren’t counted as income:

  • Disaster assistance
  • Earned income tax credit payments
  • Home energy assistance
  • Housing assistance
  • Medical treatment and drug assistance
  • Money received from others to pay your household expenses
  • Supplemental Nutrition Assistance Program (also known as SNAP or food stamps) benefits
  • Scholarships and education grants
  • Victim compensation payments

What counts and doesn’t count as resources

Resources (or assets) are the value of what you, and your spouse if you’re married, own. This includes:

  • Real estate (but not your primary residence)
  • Bank accounts, including checking accounts, savings accounts and certificates of deposit (CDs)
  • Stocks, bonds and mutual funds
  • Individual retirement accounts (IRAs)
  • Cash you have at home or elsewhere

For the Extra Help program, these things usually aren’t counted as resources:

  • Your primary residence
  • Your personal possessions
  • Your vehicle(s)
  • Things you couldn’t easily convert to cash, like jewelry or home furnishings
  • Property you use to support yourself, like rental property or land you use to grow produce for your home
  • Life insurance policies
  • Assets, and their earnings, you’ve set aside for burial expenses

Applying for Extra Help: Where to start

If you’re not automatically enrolled, you can apply for the Extra Help program by:

You can also check the status of your Extra Help enrollment in the above ways.

Medicare Savings Programs (MSP)

If you’re looking for help covering your Medicare Part A (hospital insurance) and Part B (medical insurance) premiums, you may be able to enroll in a Medicare Savings Program. An MSP is a state-run program that will help you pay for your premium costs. It’s funded through your state Medicaid program but does not mean you are enrolled in full Medicaid – although Medicaid itself will also help you cover premiums.

There are four different Medicare Savings Programs that help pay for Original Medicare costs. You may qualify based on your income, assets and whether you’re disabled. However, these guidelines can vary by state.

If you qualify, your state may help pay for all your Medicare Part A and/or B premiums. And not only that, but if you meet certain conditions, your state may also offer Medicare copay assistance or help paying for costs of Medicare deductibles.

You can apply for Medicare Savings Programs through your state, and when you do, your state determines which program(s) you qualify for. Even if you don’t think you qualify, it’s still a good idea to apply – it never hurts to make sure.

The four types of Medicare Savings Programs

As mentioned, there are four main types of Medicare Savings Programs. Each one serves a diverse range of people with different income levels and resources. All four MSPs have their own eligibility requirements based around federal poverty guidelines.

Here’s a brief overview of each program:

Qualified Medicare Beneficiary (QMB): Helps cover costs associated with Medicare premiums, deductibles, copays or coinsurance for Medicare beneficiaries with an income below 100% of the Federal Poverty Level (FPL).

Specified Low-Income Beneficiary (SLMB): Helps cover Medicare Part B premium costs for Medicare beneficiaries who have an income between 100% to 120% of the FPL.

Qualifying Individual (QI): Helps cover Medicare Part B premium costs for Medicare beneficiaries who have an income between 120% to 135% of the FPL.

Qualified Disabled Working Individual (QDWI): Helps cover Medicare Part A costs for working individuals with disabilities under age 65 who have an income below or at 200% of the FPL.

For more information on income and resource limits regarding each program, you can visit Medicare.gov.

The Elderly Waiver program

The Elderly Waiver (EW) program offers financial support and services to people living at home who need nursing home-level care. To be eligible, you must qualify for Medical Assistance (Medicaid). The EW program is specific to Minnesota, but there are many other states that have similar waiver programs covering home and community services like home health aides, home delivered meals and homemaker services.

Minnesota Senior Health Options (MSHO)

For those who are eligible, you may be able to keep your Medicaid coverage after you turn 65. In fact, some states have health plans that cover both Medicare and Medicaid and are at no or low cost. Medicare Dual Special Needs Plans (D-SNPs) are an option in some states, including Iowa, Minnesota, and Wisconsin. These plans are different than the Medicare Savings Programs we talked about above. In these Dual Special Needs Plans, private health insurance companies provide Medicaid benefits for seniors along with Medicare coverage for medical, dental and prescription drug coverage – all in one health care plan, plus extra benefits, often at no cost.

In Minnesota, the Minnesota Senior Health Options (MSHO) program is a Special Needs Plan for people aged 65 or older who are eligible for Medicaid and enrolled in Medicare Parts A and B. MSHO plan choices vary by county.