The $14.40 copay
Extra Help's 2027 drug costs are set, and your premium stays at $0
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WHAT CHANGED?
Medicare has posted its 2027 Extra Help costs for people with limited income and resources who have Part D drug coverage. The program will still keep the plan premium and deductible at $0, but the most you may pay at a participating pharmacy will rise to $5.80 for a covered generic drug and $14.40 for a covered brand-name drug.
In 2026, those maximums are $5.10 and $12.65. That makes next year's increase 70 cents per generic fill and $1.75 per brand-name fill. After total covered drug costs reach $2,400 in 2027, each covered prescription costs $0 for the rest of the year.
WHO IS AFFECTED?
You get Extra Help automatically if you have full Medicaid, receive Supplemental Security Income, or your state helps pay your Part B premium through a Medicare Savings Program.
You may qualify after applying if your 2026 income is no more than $23,940 for one person or $32,460 for a married couple, and your resources are within Medicare's limits.
The limits are higher in Alaska and Hawaii, and some income and resources do not count. Do not rule yourself out from a quick screen based only on money in the bank.
WHAT DOES IT MEAN?
A person filling one brand-name prescription every month could pay up to $21 more over 2027 than under this year's maximum. Three monthly brand-name prescriptions could add up to $63 more. Your actual amount may be lower because these are ceilings, not guaranteed prices.
The larger point is protection, not the increase. Extra Help still removes the plan premium and deductible, can prevent a Part D late-enrollment penalty while you qualify, and caps covered prescriptions. If you also have full Medicaid and the Qualified Medicare Beneficiary program, Medicare says your 2027 copay will be no more than $4.90 per covered drug.
My honest read: notice the higher copays, but do not give up a benefit that can save far more than the increase. The costly mistake is assuming a past denial—or last year's income—means you should never check again.
WHAT TO DO
Check whether Extra Help fits you now. If you already receive it and Medicare sends no change notice, you keep the help and your current plan for next year. If your income or resources fell, apply through Social Security; you may apply at any time. Gather bank and retirement-account statements first so the application does not stall. A new application is worth trying even if you were denied before.
If you want the cost limits, screening steps, and state help contacts together, The Medicare Cost & Coverage Protection Kit includes an Extra Help screening and a 51-state Medicare cost-help pack. It is a one-time $34 purchase from RetireShield.
SOURCE: Medicare's 2027 Extra Help cost page.
Written by Ellen Marsh
Retirement Money Brief is educational information only — not financial, tax, or legal advice. We will never ask you for an account number, Social Security number, password, or payment.