Prescriptions can be one of the scariest bills in retirement. The good news: there’s coverage for them, and there’s help to make it affordable. Let’s talk about Part D and a program called Extra Help.
Part D is Medicare’s prescription drug coverage. Original Medicare doesn’t cover most prescriptions on its own, so you add a private Part D plan (or get drug coverage through a Medicare Advantage plan). Everyone who has Medicare should have some drug coverage — going without it too long brings a lifelong late penalty. And here’s the relief so many of my clients waited years for: in 2026 there’s now a yearly cap on what you pay out of pocket for covered drugs (confirm the current amount at Medicare.gov).
Now the part too few people know about: Extra Help, also called the Part D Low-Income Subsidy. If your income is up to 150% of the Federal Poverty Level and your savings are under about $18,090 (or $36,100 for a couple) in 2026, Extra Help can lower — or completely erase — your drug plan’s premium, deductible, and copays (Source: SSA.gov). For many people it’s worth thousands of dollars a year.
And a lovely shortcut: if you already have Medicaid, SSI, or a Medicare Savings Program (QMB, SLMB, or QI), you automatically get Extra Help — no separate application needed. If you don’t, you can apply for Extra Help for free directly through Social Security. It never hurts to check; the income limits are more generous than people expect.
Ada’s Bottom Line
1. Part D is your prescription coverage — have it, or face a lifelong late penalty. In 2026 there’s a yearly out-of-pocket cap on covered drugs.
2. Extra Help can wipe out your drug-plan premium and copays if your income is up to 150% of the poverty level (Source: SSA.gov).
3. Medicaid, SSI, or a Medicare Savings Program automatically gets you Extra Help — otherwise apply free through SSA.
Extra Help’s limits surprise people — don’t assume you earn too much. To see what you personally qualify for — with your own numbers and state — use GoldieCircle’s free Benefits Checker (the “Find Benefits” option in Ask Goldie). For free, one-on-one help, your local SHIP counselor is wonderful (Source: Medicare.gov).
Ada spent more than 30 years as a SHIP benefits counselor helping seniors and families understand Medicare, Medicaid, and the programs that help pay for them. Confused by a letter, a form, or a bill? Ask Ada.
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