Help Paying for Medicare: Extra Help, Medicare Savings Programs and SHIP
Learning goal: Know the programs that help people with limited income pay Medicare costs, how to apply, and where to get free, unbiased Medicare counseling.
Short answer
If your income and resources are limited, two programs can help. Extra Help lowers Part D drug costs, and while you get it you won't pay a Part D late penalty. Medicare Savings Programs, run by states, can pay Part B premiums and sometimes deductibles and coinsurance. Your State Health Insurance Assistance Program (SHIP) gives free help applying.
Read to the end to complete this lesson.
On this page
The Fuller Picture
Some people get Extra Help automatically, for example if they have Medicaid or a Medicare Savings Program; others apply through Social Security. You can apply for both at the same time. Medicare.gov encourages applying for a Medicare Savings Program even if you don't think you qualify, because states can count income differently.
Key Takeaways
- Medicare.gov: Extra Help "is a Medicare program to help people with limited income and resources pay" drug plan costs.
- You won't pay a Part D late enrollment penalty while you get Extra Help.
- Medicare Savings Programs can pay Part B premiums, and some pay deductibles, coinsurance and copays.
- Medicare.gov: "Even if you don't think you qualify, you should still apply."
- Your local SHIP can help you apply, for free.
Real-World Example
Maria
Maria lives on Social Security of about $1,400 a month. Her SHIP counselor helps her apply for a Medicare Savings Program through her state and for Extra Help at the same time. The program starts paying her Part B premium, and Extra Help lowers her prescription costs, so she keeps more of her check each month.
Common Mistakes
- Assuming you earn too much without applying.
- Not knowing Extra Help removes the Part D late penalty while you have it.
- Paying for help that SHIP gives for free.
- Not reapplying or reporting changes when asked.
Interactive Exercise
Check Whether You Can Get Help
Work through these with your SHIP or on your own.
Tick each step as you do it. Your checklist is saved in this browser.
Knowledge Check
Question: Which program can pay your Part B premium if your income and resources are limited?
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Questions to explore next
Questions readers often ask next about this topic:
- Do I qualify for Extra Help?
- How do I apply for a Medicare Savings Program in my state?
- How do I find my local SHIP?
- Will Extra Help change my drug plan?
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The factual claims on this page were checked against these sources. Rules and figures change, so check the source itself if you need to confirm the current version.
- medicare.govHelp with drug costs (Extra Help) · Medicare.gov (U.S. Centers for Medicare & Medicaid Services)
- medicare.govMedicare Savings Programs · Medicare.gov (U.S. Centers for Medicare & Medicaid Services)
Educational information, not advice: This lesson is for general education only, not legal, financial, or insurance advice. Actual coverage, discounts, and requirements depend on your policy’s wording, your insurer, and the laws of your state. Confirm specifics with your own insurer or a licensed agent before making a decision. Insurpedia does not sell insurance and does not recommend specific insurers. Rules and 2026 figures are from Medicare.gov. Figures change each year, and your situation may differ. For personal help, contact your State Health Insurance Assistance Program (SHIP) or Social Security. Educational information, not advice.