How Do I Lower My Medicare Costs? (2026)

If Medicare feels expensive, the biggest savings come from federal and state programs most people never claim. Extra Help cuts drug costs to near zero, worth about $5,700 a year. The Medicare Savings Programs pay the $202.90 monthly Part B premium, and QMB also covers deductibles and copays. Full Medicaid, state drug programs, and $0 preventive care fill the rest. Every one is free to apply for, and the income limits are higher than most people expect.

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What are the main ways to lower Medicare costs in 2026?

The largest, most reliable savings are the income-based programs: Extra Help for prescriptions (about $5,700 a year), the Medicare Savings Programs that pay your $202.90 Part B premium, and full Medicaid at lower incomes. Below those sit state drug programs, $0 preventive services, and help with food and utility bills, all free to apply for.

The common thread is that none of these are sold by a salesperson and none cost anything to apply for. They are run by the Social Security Administration, your state Medicaid office, or Medicare itself. The reason so much money goes unclaimed is not fraud or complexity, it is that people assume they earn too much and never check. The limits are higher, and the rules more forgiving, than the reputation suggests.

What is Extra Help and how much does it save?

Extra Help, also called the Part D Low-Income Subsidy, lowers Medicare prescription drug costs to a $0 premium, $0 deductible, and small copays, a benefit worth roughly $5,700 a year in 2026. In 2026 the income limits are about $23,940 for a single person and $32,460 for a married couple, with countable resources under $18,090 or $36,100.

Extra Help is a single federal application through Social Security, and your home and one car never count toward the resource limit. Because some income and savings are excluded, it is worth applying even if you look slightly over the line. Full detail, including what counts, lives in our guide to Extra Help.

What do the Medicare Savings Programs pay for?

The Medicare Savings Programs pay your Part B premium, $202.90 a month in 2026. The QMB level goes further and covers your Medicare deductibles, coinsurance, and copays, and QMB members cannot legally be billed for those costs. Monthly income limits run to roughly $1,350 (QMB), $1,616 (SLMB), and $1,816 (QI) for a single person, higher for couples.

There are three programs, sorted by income: QMB, SLMB, and QI. Applying for any of them also enrolls you automatically in Extra Help for drugs. You apply through your state Medicaid office or with a free counselor at 1-800-MEDICARE. Our Medicare Savings Programs guide walks through each level and the 2026 limits.

Do my savings disqualify me from these programs?

Often not. The federal resource limit for the Medicare Savings Programs is $9,950 for a single person and $14,910 for a couple, not counting your home or one car. And 13 states plus D.C. have eliminated the asset test entirely, so in those states only your income is counted, no matter how much you have in the bank.

This is the single most common reason people skip applying: they assume a modest nest egg makes them ineligible. In much of the country it does not. If you live in one of the no-asset-test states, savings never enter the calculation. Everywhere else, the limits are higher than most people guess, and only countable resources apply.

What if my income is very low?

At lower income levels you may qualify for full Medicaid alongside Medicare, known as being dual-eligible, the most complete and affordable coverage available. Medicaid then wraps around Medicare, paying premiums, deductibles, and copays, and covering services Medicare does not, most notably long-term care that Medicare largely excludes.

Dual eligibility usually starts with a Medicare Savings Program and can extend to full Medicaid depending on your state's rules. It can turn a stack of medical bills into almost nothing. Our dual-eligibility guide explains how the two programs fit together and how to check where you stand.

What other help exists beyond the big programs?

Beyond the headline programs, 15 states run State Pharmaceutical Assistance Programs that lower drug costs even without Extra Help, Medicare covers many preventive services at $0, and people who qualify for the programs above usually also qualify for SNAP for groceries and LIHEAP for utility bills. A free counselor can point you to each.

These smaller programs add up. Medicare fully covers a yearly wellness visit, many screenings, and recommended vaccines, so skipping them leaves paid-for value on the table. For the non-Medicare pieces, search your state's name plus "pharmaceutical assistance program," and ask a State Health Insurance Assistance Program counselor about food, utility, and property-tax relief.

How do I apply for these programs without paying anyone?

Never pay an agent, none of these programs charge to apply. Extra Help goes through Social Security online or at 1-800-772-1213. The Medicare Savings Programs and Medicaid go through your state office. A free SHIP counselor at 1-800-MEDICARE can screen you for all of them at once and help you file.

The safest path is to start with a single eligibility check that covers every program together, then apply for the ones you match. Applying for a Savings Program automatically triggers Extra Help, so you often unlock two benefits with one form. Avoid any caller or ad that offers to "sign you up" for a fee, legitimate help is always free.