How to Use Medicare Extra Help to Pay Less for Generic Prescriptions

If you’re on Medicare and take generic medications, Medicare Extra Help could cut your monthly drug costs by 90% or more. For many people, it turns a $30 copay into just $4.90 - and wipes out your monthly premium and deductible entirely. Yet, nearly 4 out of 10 eligible seniors don’t enroll. Why? Because the system is confusing, and the rules feel like a maze. This isn’t about guessing. It’s about knowing exactly how Extra Help works for generics, who qualifies, and how to keep it - even if your income changes.

What Medicare Extra Help Actually Covers for Generic Drugs

Medicare Extra Help, officially called the Part D Low-Income Subsidy, doesn’t just give you a discount. It removes almost all the costs that make prescriptions unaffordable. In 2025, if you qualify, you pay:

• $0 for your Medicare Part D plan premium
• $0 for your annual deductible
• Up to $4.90 for each generic prescription
• Up to $12.15 for each brand-name drug

That’s it. No hidden fees. No surprise bills. No waiting to hit your deductible. Even if your generic drug costs $50, you pay $4.90. If it’s $100, you still pay $4.90. The program caps your out-of-pocket cost at that amount, no matter how expensive the drug is.

There’s one exception: if you also get Medicaid and your income is below 100% of the Federal Poverty Level, you pay only $1.60 per generic. That’s less than the cost of a coffee. For someone taking five generic drugs a month, that’s $96 a year instead of over $700.

Who Qualifies for Extra Help in 2025

Eligibility isn’t based on how sick you are - it’s based on how much money you have and how much you earn. The limits are strict, but they’re clear.

For 2025, you qualify if your yearly income is:

• $23,475 or less if you’re single
• $31,725 or less if you’re married and living with your spouse

Your resources - what you own - also matter. You can have up to:

• $17,600 in resources as an individual
• $35,130 as a married couple

Resources include bank accounts, stocks, bonds, mutual funds, and IRAs. But your primary home, one car, household items, and personal belongings don’t count. You also get a $1,500 allowance for burial expenses that doesn’t count against your limit.

Here’s what doesn’t count as income: housing assistance, food stamps, Medicaid payments, or tax refunds. Social Security, pensions, and wages do count. If you’re unsure, the Social Security Administration has a free online tool that walks you through it step by step.

Why Extra Help Beats Standard Part D for Generics

Without Extra Help, you’re stuck with the standard Part D structure:

• A deductible of up to $595 (you pay 100% until you hit this)
• Then 25% coinsurance on generics during the initial coverage phase

Let’s say you take four generic prescriptions a month, each costing $40. That’s $1,920 a year in drug costs. Without Extra Help:

• You pay $595 deductible first
• Then $10 per prescription (25% of $40) for 12 months = $480
• Total out-of-pocket: $1,075

With Extra Help:

• No deductible
• $4.90 per prescription × 48 doses = $235.20
• Total out-of-pocket: $235.20

You save $840 a year - just on generics. Add in the $0 premium and you’re saving even more. For people with five or six prescriptions, the savings often top $1,200 annually.

How to Apply - and What to Avoid

You don’t need a lawyer. You don’t need to pay a consultant. The application is free and available in three ways:

1. Online at ssa.gov (the fastest option)
2. By phone: call 1-800-772-1213
3. In person at your local Social Security office

If you already get Supplemental Security Income (SSI), Medicaid, or a Medicare Savings Program, you’re automatically enrolled. No paperwork needed.

But here’s the trap: many people think they don’t qualify because they’re “a little over the limit.” That’s a mistake. The income and resource limits are exact, but there are ways to reduce what counts. For example:

• If you have a large bank account, consider paying off debt or prepaying medical bills before the application date
• Don’t cash out retirement accounts - those count as resources
• Keep records of all your income sources - Social Security statements, pension letters, bank deposits

Applications take 3 to 6 weeks to process. Apply early. Don’t wait until your prescription runs out.

What Happens When Your Income Changes

This is where people get caught. Every August, you get a letter from Social Security asking you to reapply. It’s not optional. If you don’t return the form by the deadline, your Extra Help ends on January 1.

Even a small increase in income - like a $50 raise in your Social Security benefit - can push you over the limit. One Reddit user shared: “I made $500 over the limit. Lost Extra Help. My $200/month generic meds jumped to $1,200 a year in premiums plus $748 in copays. I had to skip pills.”

But there’s a way out. If you’re denied because you went over the limit, you can appeal. Call 1-800-MEDICARE and ask for a “reconsideration.” Sometimes, if you can prove your expenses are high (like for medical equipment or home care), they’ll give you an exception.

Also, if you’re just barely over the limit, you might still qualify for a Medicare Savings Program. These state-run programs can help pay your Part B premiums and sometimes your Part D costs too. Contact your State Health Insurance Assistance Program (SHIP) for help - they’re free and local.

How to Keep Extra Help Active

Once you’re approved, you’re not done. You need to stay on top of three things:

1. Return your annual review form by the deadline - usually in August
2. Update your address with Social Security if you move
3. Call 1-800-MEDICARE if your income or resources change significantly

You can change your Part D plan once a month if you have Extra Help. That’s a big advantage. If your current plan doesn’t cover a drug you need, or if a new plan offers a lower copay, you can switch. Use the Medicare Plan Finder tool to compare options - Extra Help users can filter by “$4.90 generic copay” to find the best match.

Real Stories - The Good, the Bad, and the Ugly

People who get Extra Help say it’s life-changing. One woman in Ohio, 78, takes six generics for diabetes, heart disease, and arthritis. Before Extra Help, she spent $600 a year on copays alone. After, she paid $295. She said: “I didn’t have to choose between my meds and my heating bill anymore.”

But others struggle. A man in Florida lost his Extra Help after his wife passed away. His income dropped, but his resource limit was still exceeded because he hadn’t changed the title on their joint bank account. He didn’t know he had to report the change. He went without his blood pressure meds for three months.

That’s why free help exists. Every state has a SHIP - State Health Insurance Assistance Program. They’ll sit with you, help you fill out forms, and explain what counts as income. They don’t sell anything. They don’t charge anything. Just call 1-800-MEDICARE and ask for your local SHIP.

What’s Coming Next

The Inflation Reduction Act capped insulin at $35 a month for all Medicare beneficiaries in 2025 - good news for Extra Help users, since they already pay less than that. But the bigger change might be coming: the Biden administration proposed expanding Extra Help to people with incomes up to 175% of the Federal Poverty Level. That would raise the limit to about $28,500 for a single person - potentially helping over a million more seniors.

Right now, Extra Help covers 15.2 million people - nearly 3 out of 10 Medicare Part D enrollees. Experts say it’s the most effective prescription assistance program in Medicare. But it’s also underused. If you’re on fixed income and take generics, you’re likely eligible. Don’t assume you’re not. Don’t wait until you can’t afford your pills. Apply now.