Medicare 2026

Purple, Yellow or Green Letter From Medicare? How Automatic Extra Help Works

If a color-coded envelope from Medicare lands in your mailbox, don't toss it. Purple, yellow and green notices are how the Centers for Medicare & Medicaid Services (CMS) tells people they qualify automatically for Extra Help — the federal program that lowers what you pay for Part D prescription drugs. You don't have to apply; the letter itself is the signal that help is on the way. Here's how to read what you got and what to do next.

Who qualifies automatically

You get Extra Help with Part D drug costs automatically, without filling out an application, if any of these apply:

• You have full-benefit Medicaid.
• Your state helps pay your Part B premium through a Medicare Savings Program.
• You receive Supplemental Security Income (SSI).

If one of those is true, CMS or Social Security already has what it needs. The colored envelope is simply confirmation.

The purple letter: Deemed Status Notice

The purple notice (CMS Product No. 11166) is the "you're in" letter. It tells you that you automatically qualify for Extra Help, that you do not need to apply, and that Medicare will enroll you in a Part D drug plan so you actually receive the help. You're free to pick a different plan in your area yourself if you'd rather choose. And if you don't want the drug plan or Extra Help at all, you can call 1-800-MEDICARE to opt out.

The yellow letter: Auto-Enrollment Notice

The yellow notice (CMS Product No. 11154) goes to people who have Original Medicare and also have full Medicaid. It tells you Medicare has enrolled you in a specific Part D plan, shows what you'll pay, and reminds you that you can switch to a different plan if the one Medicare picked isn't a good fit for your medications or pharmacy.

The green letter: Facilitated Enrollment Notice

The green notice (CMS Product No. 11186) goes to people with Original Medicare who qualify for Extra Help (for example, through a Medicare Savings Program or SSI). It lays out three options: review available plans and pick one yourself, let Medicare pick a plan for you, or opt out of Medicare drug coverage entirely.

How Medicare chooses a plan if you don't

When CMS enrolls someone with Extra Help who hasn't picked a plan, federal rules require it to choose a stand-alone Part D plan in that person's area whose premium doesn't exceed the low-income premium subsidy amount. If more than one plan qualifies, people are assigned among those plans at random. The plan you're assigned may not be the one that best matches your prescriptions — which is why it's worth looking at the options on Medicare.gov and switching if another plan covers your drugs more favorably.

The yellow "retroactive" letter

If you have Original Medicare and automatically qualify for Extra Help for a past period — because you have full Medicaid or SSI — you may get a yellow retroactive notice (CMS Product No. 11429, or a "Retroactive ONLY" notice, No. 12053). This one is important: you can be paid back for part of what you spent on covered prescriptions during that retroactive period. Call Medicare's Limited Income Newly Eligible Transition (LI NET) program at 1-800-783-1307 (TTY 711) to start that process.

What if you have retiree drug coverage?

People with both Medicare and Medicaid who also have retiree drug coverage from a former employer or union qualify for Extra Help, but Medicare does not automatically enroll them in a Part D plan — because joining one could jeopardize the retiree coverage. If this is you, talk with your former employer's benefits office before making any change.

What Extra Help pays in 2027

For 2027, Extra Help copays are up to $5.80 for each generic drug and up to $14.40 for each brand-name drug covered by your plan. Separately, Part D has a $2,400 out-of-pocket cap in 2027 (it's $2,100 in 2026), and no Part D plan may charge a deductible higher than $700. The Part D base beneficiary premium — a national figure used to calculate the late-enrollment penalty — is $41.33 for 2027; actual plan premiums are set plan by plan.

CMS announces the 2027 Part B standard premium and deductible, along with the IRMAA income brackets, in the fall (usually November). Social Security has announced a 3.6 percent cost-of-living adjustment (COLA) for benefits payable beginning January 2027.

How long Extra Help lasts

Once you have Extra Help, it continues for the rest of the calendar year — through December 31 — even if your income or Medicaid status changes mid-year. Medicare or Social Security will mail you a notice about the next year only if you no longer qualify or are being moved to a different plan. No notice? Your Extra Help and your plan continue.

Changing plans when you have Extra Help

Since 2025, people with Medicaid or Extra Help have a monthly Special Enrollment Period to move to Original Medicare with a stand-alone Part D plan, or to switch from one stand-alone Part D plan to another. Full-benefit dual-eligible people can also join an integrated Dual Eligible Special Needs Plan (D-SNP) in any month.

Everyone else uses Medicare's Annual Enrollment Period — October 15 through December 7, 2026, for coverage that starts January 1, 2027 — to review Part D or Medicare Advantage choices.

A neutral word on your coverage path

Some people prefer Original Medicare paired with a stand-alone Part D plan (and, if they choose, a Medigap policy) for broader provider choice and predictable supplemental costs. Others prefer a Medicare Advantage plan that bundles medical and drug coverage, often with extra benefits, in exchange for using the plan's network. Neither is "better" — it depends on your doctors, your medications, your budget and how you like to get care. Extra Help works alongside either path.

Where can you get help with Medicare questions?

For plan details in your area, the plan finder, and official information on Extra Help, visit Medicare.gov or call 1-800-MEDICARE (1-800-633-4227), 24 hours a day, 7 days a week (TTY 1-877-486-2048). For questions about LI NET and retroactive reimbursements, call 1-800-783-1307 (TTY 711).

This article is educational only and is produced by an independent, privately owned Medicare education site. It is not affiliated with or endorsed by the federal government or any government agency.