Medicare Part D

Brookline Medicare readers: how the Low-Income Subsidy works in 2027

Brookline, Mass. — If prescription costs are stretching a fixed income thin, there is a federal program that quietly does a lot of heavy lifting for Medicare drug coverage. It is called the Low-Income Subsidy, or LIS — most people know it as "Extra Help." The Part D annual out-of-pocket cap on covered drugs is $2,100 in 2026 and $2,400 in 2027, and Extra Help works alongside it.

Medicare Part DBrookline, MA

Brookline is in Norfolk County, where Medicare Part D and Medicare Advantage plans with drug coverage are sold. Extra Help follows the person, not the plan, so any Part D enrollee in town who qualifies can use it.

What Extra Help actually pays for

Extra Help is a federal subsidy for Medicare Part D — the part of Medicare that covers prescription drugs. If you qualify, it can reduce or eliminate your Part D monthly premium (up to a benchmark amount), lower or wipe out your yearly deductible, and cap what you pay at the pharmacy counter for each covered prescription.

It does not pay for Part B premiums, doctor visits, or drugs given in a hospital. Those are separate. For help with Part A and Part B costs, Massachusetts residents can look at the Medicare Savings Programs, which are run through MassHealth.

Who qualifies in 2027

Extra Help uses two tests: income and resources.

• Income: Generally, your annual income must be at or below 150% of the federal poverty level. Social Security updates the exact dollar figures each year, and some income (like a portion of earnings from work) is not counted.
• Resources: Things like money in checking and savings accounts, stocks and bonds count. Your home, one car, burial plots and personal belongings do not.

If you already have full Medicaid (MassHealth), get help from a Medicare Savings Program, or receive Supplemental Security Income (SSI), you are automatically enrolled in Extra Help. You do not need to apply.

What changed recently

Before 2024, Extra Help had two levels: a full subsidy and a partial one. The Inflation Reduction Act expanded the full benefit to everyone who qualifies under the 150% income limit. That means more people now get the strongest version of the help, and the paperwork is simpler.

For 2027, Part D also has:

• A $2,400 annual out-of-pocket cap on covered drugs for every enrollee in 2027 (up from $2,100 in 2026).
• A maximum deductible for standard Part D plans of $615 in 2026 and $700 in 2027 (many plans set theirs lower).
• The Medicare Prescription Payment Plan, which lets you spread your drug costs across the calendar year in monthly bills instead of paying large amounts at the pharmacy.

The old "donut hole" coverage gap was eliminated in 2025, so Part D now has three phases instead of four.

How to apply from Brookline

There are three straightforward ways to apply:

1. Online at ssa.gov/extrahelp. 2. By phone at 1-800-772-1213 (Social Security). 3. In person at a Social Security office, or with free help from Massachusetts SHINE, the state's SHIP counselor program.

You can apply at any time — you do not have to wait for the Annual Enrollment Period (Oct. 15–Dec. 7) or the Medicare Advantage Open Enrollment Period (Jan. 1–March 31). If you are approved, you can also use a special enrollment opportunity to pick or switch a Part D plan.

A quick word on income and IRMAA

Extra Help is aimed at lower incomes. On the other end, higher earners pay an Income-Related Monthly Adjustment Amount (IRMAA) surcharge on Part B and Part D. For 2026, IRMAA begins above $109,000 in income for a single filer. Most Brookline residents will fall somewhere between the two, paying the standard Part D premium without either program applying.