Prescription drug costs are one of the biggest financial burdens for people on fixed incomes. But several programs exist to help reduce or eliminate what you pay at the pharmacy – including federal programs, state programs, manufacturer assistance, and discount cards available to anyone.
Here’s a breakdown of what’s available and how to access it.
Medicare Extra Help (Low Income Subsidy)
If you have Medicare and take prescription drugs, Extra Help – also called the Low Income Subsidy (LIS) – is the most valuable prescription assistance program available to you. It pays most of the cost of Medicare Part D drug coverage, including premiums, deductibles, and copays.
In 2026, Extra Help can save beneficiaries an average of $5,300 per year on drug costs. Copays for covered drugs are capped at around $4.50 for generics and $11.20 for brand-name drugs.
Income limits are about $22,590 for individuals and $30,660 for couples (2026). You can apply through Social Security at ssa.gov/extrahelp or by calling 1-800-772-1213.
Medicare Part D: Your Drug Plan Options
Medicare Part D is the standard drug coverage available through Medicare. If you don’t have Part D and you take regular medications, you’re likely paying more than you need to. Plans vary widely in which drugs they cover and at what cost.
Choosing the right Part D plan based on your specific medications can make a significant difference in your out-of-pocket costs. If you need help comparing plans, a licensed Medicare counselor can review your options at no cost.
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State Pharmaceutical Assistance Programs (SPAPs)
Many states have their own prescription assistance programs that work alongside Medicare to further reduce drug costs. These are called State Pharmaceutical Assistance Programs (SPAPs). They may help pay Part D premiums, copays, or costs for drugs not covered by your plan.
SPAPs vary significantly by state – some are well-funded with broad eligibility, others are limited or no longer active. Contact your State Health Insurance Assistance Program (SHIP) or your state’s department of aging to find out what’s available in your state.
Medicaid Prescription Coverage
If you have Medicaid, your prescription costs are typically very low or zero – most Medicaid programs cover a broad formulary with minimal copays. If you qualify for both Medicare and Medicaid (called “dual eligible”), you automatically qualify for Extra Help.
If you don’t have Medicaid but your income is limited, it’s worth checking whether you qualify. Eligibility expanded significantly under the Affordable Care Act, and many low-income adults who don’t realize they’re eligible can now enroll.
Manufacturer Patient Assistance Programs
Most major pharmaceutical manufacturers offer Patient Assistance Programs (PAPs) that provide brand-name medications free or at deeply reduced cost to people who meet their income requirements. These are separate from insurance and Medicare.
To find programs for your specific medications, visit needymeds.org or rxassist.org – both are free databases that list assistance programs by drug name. Your doctor’s office may also be able to help enroll you directly.
Prescription Discount Cards
For people without drug insurance – or for drugs not covered by your plan – prescription discount cards can provide significant savings. GoodRx, RxSaver, and similar services are free and don’t require enrollment. You simply present the card or coupon at the pharmacy.
Discounts vary by pharmacy and drug, but savings of 50-80% on generics are common. These work at most major pharmacy chains. Note: you generally can’t use a discount card and Medicare Part D at the same time – compare the prices to see which is lower.
Find Other Benefits You May Qualify For
Prescription assistance is often one piece of a larger picture. If you’re struggling with drug costs, you may also qualify for help with food, utilities, or other healthcare expenses.
See all programs you may qualify for.
Use the Benefits Finder tool to check prescription help, Medicare savings programs, food assistance, and more.
Money Instructor does not provide tax, legal, or investment advice. This material has been prepared for educational and informational purposes only. Program eligibility, benefit amounts, and plan availability change annually. Verify current information with SSA.gov, Medicare.gov, or your state agency.
Disclosure: We may receive a referral from Chapter if you choose to use their service. Chapter is a licensed health insurance agency and is not affiliated with or endorsed by Medicare or any government agency.