Medicare Part D

Extra Help Could Cut Your Rx Costs in Schaumburg

# Lowering Medicare prescription costs through the Low-Income…

SCHAUMBURG, Ill. — For many people on Medicare, the monthly cost of prescriptions is the part of the budget that hurts most. A federal program called Extra Help — also known as the Low-Income Subsidy, or LIS — is built to ease that pressure. And in 2027, more people than ever may qualify.

What Extra Help actually does

Extra Help is run by the Social Security Administration and the Centers for Medicare & Medicaid Services (CMS). If you qualify, it can lower or eliminate your Part D drug plan premium and deductible, and it caps what you pay at the pharmacy counter for covered generic and brand-name drugs.

As of 2024, Extra Help was expanded so that everyone who qualifies gets the full subsidy — the old "partial" tier is gone. That change stays in place for 2027.

Who qualifies in 2027

To get Extra Help, you must have Medicare and meet income and resource limits set each year by the federal government. As a general guide:

• Your income must fall below 150% of the federal poverty level.
• Your resources (things like money in the bank, stocks, and bonds) must fall under the annual limit. Your home, one car, and personal belongings don't count.

Limits are updated each year, so check the current numbers at ssa.gov/extrahelp before assuming you don't qualify. Many people who think they earn too much actually come in under the line, especially once certain income is excluded.

If you already have full Medicaid, a Medicare Savings Program, or Supplemental Security Income (SSI), you're automatically enrolled in Extra Help — you don't need to apply.

How Extra Help fits with 2027 Part D changes

Part D looks different in 2027 than it did just a few years ago:

• The out-of-pocket cap on covered drugs is $2,100 in 2026 and $2,400 in 2027.
• The maximum Part D deductible is $615 in 2026 and $700 in 2027.
• The old coverage gap (the "donut hole") is gone; Part D now has three simpler phases.
• The Medicare Prescription Payment Plan lets anyone with a Part D plan spread their drug costs into monthly installments instead of paying big bills at the pharmacy.

Extra Help sits on top of all of this. If you qualify, your costs are lower still — often much lower than the standard cap.

Local resources in Schaumburg

Schaumburg is in Cook County, where a wide range of stand-alone Part D and Medicare Advantage plans that include drug coverage are offered each year. That's a lot to sort through, and Extra Help works with any Part D plan you choose, so picking the right plan still matters.

For free, one-on-one help — with no sales pitch — Illinois residents can contact the Senior Health Insurance Program (SHIP), part of the Illinois Department on Aging. SHIP counselors can walk you through an Extra Help application, compare drug plans using your medication list, and explain how Medicaid or a Medicare Savings Program might also apply.

How to apply

You can apply for Extra Help any time of year — you don't have to wait for Medicare's Annual Enrollment Period (Oct. 15 – Dec. 7). There are three easy ways:

1. Online at ssa.gov/extrahelp 2. By phone at 1-800-772-1213 (TTY 1-800-325-0778) 3. In person at your local Social Security office

If you're approved, Social Security will send a letter explaining your benefit. You can then join or switch to a Part D plan using a Special Enrollment Period tied to Extra Help.