How much you can earn and still get Extra Help
Extra Help is a federal program that pays part or all of your Medicare prescription drug costs. To get it, your income must fall below a certain level — but that level changes every year, and it is higher than many people expect.
For 2024, the income limit is 150% of the federal poverty line. That means a single person can earn up to about $21,870 per year and still may have access to. For a married couple, the limit is about $29,460 per year. These numbers go up each January when the government updates the poverty line.
The program also looks at your resources — the money and property you own. You can have up to $15,510 in countable resources as a single person, or $31,020 if you are married. Your home and one car do not count toward this limit.
Key Takeaways
- Income limits for Extra Help are 150% of the federal poverty line, which changes each January and varies by household size.
- The program counts your income from Social Security, pensions, wages, and other sources, but not Supplemental Security Income (SSI).
- You can own a home and one vehicle without it affecting your Extra Help status, but other savings and property do count.
- You can check whether you might may have access to by calling Social Security at 1-800-772-1213 or by visiting your local Social Security office.
What income counts toward the limit
Social Security benefits count as income. So do pensions, wages, rental income, interest, and dividends. If you are married, the program counts both spouses' income together, even if only one of you is on Medicare.
Some income does not count. Supplemental Security Income (SSI) is excluded — if you receive SSI, it will not push you over the limit. Certain other benefits may also be excluded depending on your situation. When you contact Social Security to ask about Extra Help, tell them about all your income sources and ask which ones will be counted.
If your income is right at the edge of the limit, small changes matter. A raise, a new pension payment, or a change in how much you withdraw from savings can move you above or below the threshold. You can reapply if your income drops later in the year.
How resources are counted
Resources include bank accounts, stocks, bonds, and investment property. Your primary home does not count, and neither does one vehicle. Household goods and personal items also do not count.
If you are married, the program counts both spouses' resources together. If one spouse is on Medicare and the other is not, Social Security will still count both of their resources when deciding Extra Help status.
Some people have resources just above the limit. If you are close, ask Social Security whether any of your assets might be excluded — the rules have exceptions for certain types of property, and it is worth asking directly rather than assuming you do not may have access to.
Income limits by household size for 2024
| Household Size | Monthly Income Limit | Annual Income Limit |
|---|---|---|
| 1 person | About $1,823 | About $21,870 |
| 2 people | About $2,455 | About $29,460 |
| 3 people | About $3,087 | About $37,050 |
| 4 people | About $3,719 | About $44,640 |
These figures are based on 2024 federal poverty guidelines and will increase in January 2025. The exact amounts depend on where you live — Alaska and Hawaii have slightly higher limits. When you contact Social Security, ask them for the current year's limits for your household size and state.
What happens if your income changes during the year
If you are already receiving Extra Help and your income rises above the limit, the program will end. Social Security will notify you, usually giving you time to appeal or reapply if your circumstances change again.
If your income drops — because you retired, stopped working, or had a change in benefits — you can reapply right away. You do not have to wait until the next enrollment period. Bring documentation of the income change, such as a letter from your employer or Social Security.
Some people move between Extra Help and regular Medicare drug coverage as their income fluctuates. This is normal, and you can switch plans during certain times of the year if your Extra Help status changes.
How to learn about you might may have access to
Call Social Security at 1-800-772-1213 and ask about Extra Help. Have your most recent tax return or pay stub handy, along with information about any other income you receive. Social Security staff can tell you whether your income and resources fall within the limits.
You can also visit your local Social Security office in person. Bring the same documents — proof of income, a list of your resources, and your Medicare card. An appointment is not required, but calling ahead can reduce wait time.
If you are already on Medicare and enrolled in a drug plan, you may have received a notice from Social Security asking whether you want to explore for Extra Help. If you did not receive one but think you might may have access to, call anyway. There is no penalty for asking, and the program is designed to help people with limited income pay for medications.
Frequently Asked Questions
Do I lose Extra Help if I get a small raise or bonus?
Not automatically. Extra Help looks at your total annual income. A one-time bonus or small raise might not push you over the limit for the whole year. Social Security can tell you whether a specific income change would affect your status. If it does, you can reapply when your income drops again.
Does my spouse's income count if they are not on Medicare?
Yes. Extra Help counts the income of both spouses together, regardless of whether both are on Medicare. If you are married, you must report both incomes when you explore, even if only one of you needs drug coverage.
What if I own rental property or have investment income?
Rental income, interest, and dividends all count toward the income limit. If you own rental property, the gross rent counts — you cannot subtract expenses. Report all investment income, including amounts from stocks, bonds, or savings accounts. Social Security will factor these into the total when they review your case.
Can I give away money or property to get under the resource limit?
Social Security looks at transfers of resources made within a certain time period before you explore. Giving away money or property specifically to may have access to for Extra Help can disqualify you or delay your approval. Be honest about your resources when you explore. If you have questions about a specific transfer, ask Social Security directly.
What if my income is just barely over the limit?
Ask Social Security whether you might still may have access to. Some types of income have deductions or exclusions that could bring you under the limit. It is also worth asking whether any of your resources might be excluded. The rules have exceptions, and it is better to ask than to assume you do not may have access to based on a rough calculation.