How to Lower Your Medicare Drug Costs: Extra Help and Savings Programs in 2026
Prescription drugs are one of the biggest out-of-pocket costs for people with Medicare. If you have a limited income and limited savings, several government programs can dramatically lower — or even eliminate — what you pay for your medications and your Medicare premiums in 2026. This guide explains the two main types of help: the Part D Low-Income Subsidy (Extra Help) and the four Medicare Savings Programs (MSPs), and how the rules differ in Alabama, Florida, Mississippi, and Georgia.
The Part D Low-Income Subsidy (“Extra Help”)
Extra Help is a federal program run by the Social Security Administration that lowers the cost of Medicare Part D prescription drug coverage. It can reduce or eliminate your Part D premium and deductible and cap what you pay at the pharmacy counter. In 2026, people who qualify pay no more than $12.65 for each covered drug.
How it works: Your eligibility is based on your income and resources (savings, investments, and other assets — your home and car generally do not count). You can apply at any time, before or after you enroll in a Part D plan. Many people who qualify for a Medicare Savings Program are automatically enrolled in Extra Help, so it is worth applying for both.
2026 Federal LIS / Extra Help Income & Resource Limits
| Who | Income (Single) | Income (Couple) | Assets (Single) | Assets (Couple) | What You Pay |
|---|---|---|---|---|---|
| Full LIS (apply via SSA) |
$2,015/mo ($24,180/yr) | $2,725/mo ($32,700/yr) | $16,590 ($18,090 w/ burial) | $33,100 ($36,100 w/ burial) | $0 premium (up to benchmark), $0 deductible; copays ≤$5.10 generic / $12.65 brand; $0 after $2,100 OOP cap |
| Auto-enrolled | Anyone with Medicaid, an MSP (QMB/SLMB/QI), or SSI — no application needed. | Full duals ≤100% FPL pay lower copays: $1.60 generic / $4.90 brand ($0 if institutionalized or on HCBS waiver). | |||
LIS income limit = 150% FPL + $20/mo disregard; same nationwide (higher in AK/HI). Assets exclude home, one vehicle, and $1,500/person burial allowance.
Apply or learn more:
- Apply online with Social Security: ssa.gov/medicare/part-d-extra-help
- Extra Help overview on Medicare.gov: medicare.gov/basics/costs/help/drug-costs
- Call Social Security: 1-800-772-1213 (TTY 1-800-325-0778)
Medicare Savings Programs (MSPs)
Medicare Savings Programs are run by each state’s Medicaid agency and help pay your Medicare Part A and/or Part B premiums, and sometimes your deductibles, coinsurance, and copayments. If you qualify for an MSP, you also automatically get Extra Help for your drugs. There are four programs, each with different income limits:
- Qualified Medicare Beneficiary (QMB): Helps pay Part A and Part B premiums, deductibles, coinsurance, and copayments.
- Specified Low-Income Medicare Beneficiary (SLMB): Helps pay the Part B premium.
- Qualifying Individual (QI): Helps pay the Part B premium (you must reapply each year; approved first-come, first-served).
- Qualified Disabled & Working Individual (QDWI): Helps pay the Part A premium for certain working people with disabilities.
State-by-State 2026 MSP Income & Asset Limits: AL, FL, MS & GA
The federal government sets the baseline, but each state administers its own Medicare Savings Programs and some raise the income limits or waive the asset test. Each state’s 2026 monthly limits are shown separately below.
| Program | Income (Single) | Income (Couple) | Asset Limit | What It Pays |
|---|---|---|---|---|
| QMB | $1,350 | $1,824 | No limit | Part A & B premiums + all cost-sharing |
| SLMB | $1,616 | $2,184 | No limit | Part B premium ($202.90) |
| QI-1 | $1,816 | $2,455 | No limit | Part B premium ($202.90) |
No asset test in AL. Standard $20 income disregard included.
| Program | Income (Single) | Income (Couple) | Asset Limit | What It Pays |
|---|---|---|---|---|
| QMB | $1,350 | $1,824 | $9,950 / $14,910 | Part A & B premiums + all cost-sharing |
| SLMB | $1,616 | $2,184 | $9,950 / $14,910 | Part B premium ($202.90) |
| QI | $1,816 | $2,455 | $9,950 / $14,910 | Part B premium ($202.90) |
Federal asset limits (single / couple). $20 income disregard included.
| Program | Income (Single) | Income (Couple) | Asset Limit | What It Pays |
|---|---|---|---|---|
| QMB | $1,380 | $1,854 | No limit | Part A & B premiums + all cost-sharing |
| SLMB | $1,646 | $2,214 | No limit | Part B premium ($202.90) |
| QI | $1,846 | $2,485 | No limit | Part B premium ($202.90) |
No asset test in MS. Limits higher than federal — MS uses a $50 income disregard.
| Program | Income (Single) | Income (Couple) | Asset Limit | What It Pays |
|---|---|---|---|---|
| QMB | $1,350 | $1,824 | $9,950 / $14,910 | Part A & B premiums + all cost-sharing |
| SLMB | $1,616 | $2,184 | $9,950 / $14,910 | Part B premium ($202.90) |
| QI-1 | $1,816 | $2,455 | $9,950 / $14,910 | Part B premium ($202.90) |
Federal asset limits (single / couple). $20 income disregard included.
All programs: Enrollees in QMB, SLMB, or QI automatically qualify for full Part D Extra Help (LIS). QI is first-come, first-served and cannot be combined with full Medicaid. If only one spouse is on Medicare, the applying spouse uses the single limit but combined income must stay under the couple limit (AL rule; similar elsewhere). QMB = Qualified Medicare Beneficiary (≤100% FPL) • SLMB = Specified Low-Income Medicare Beneficiary (100–120% FPL) • QI = Qualifying Individual (120–135% FPL).
Sources: NCOA MSP Eligibility & Coverage chart (Mar 2026); NCOA Part D LIS chart (Feb 2026); CMS CY2026 LIS Resource Limits memo (Oct 2025); SSA POMS HI 00815.023 (Feb 2026); Alabama Medicaid Form 207 (2026); Mississippi Division of Medicaid; Florida DCF; Georgia Medicaid. Verify with the state Medicaid agency before enrolling — limits update each spring with the new FPL.
How to Take Action
- Apply for Extra Help with Social Security at ssa.gov/medicare/part-d-extra-help or call 1-800-772-1213.
- Apply for a Medicare Savings Program through your state Medicaid agency (see the chart above).
- Even if you think you earn too much, apply anyway — your state may not count all of your income or resources.
- Free personalized help: Contact your State Health Insurance Assistance Program (SHIP) at shiphelp.org or call 1-800-MEDICARE (1-800-633-4227).
This article is for general educational purposes and reflects 2026 federal figures. Program rules and limits are updated regularly — verify current amounts and eligibility with the official sources linked above before applying.