Two programs can lower Medicare premiums, deductibles and prescription costs for eligible Iowans with limited income and resources.
Updated Oct. 6, 2026.
Iowans with limited income and resources may qualify for two programs that can reduce Medicare costs: Medicare Savings Programs and Extra Help. The programs cover different expenses and have separate 2026 income and resource guidelines.
Medicare Savings Programs, or MSPs, can help with Medicare Part A and Part B costs. Depending on the program, assistance may cover the Part B premium alone or also premiums, deductibles and coinsurance.
Extra Help focuses on Medicare Part D prescription drug costs. It can reduce or eliminate a drug plan premium and lower prescription copays for eligible beneficiaries.
The programs can also work together. People who qualify for a Medicare Savings Program automatically qualify for Extra Help with Medicare prescription drug costs.
Extra Help has higher income and resource limits in 2026
Extra Help, also known as the Low-Income Subsidy, helps people with limited income and resources pay Medicare Part D costs.
For 2026, Iowa SHIIP uses the following income and resource amounts when screening people for Extra Help:
- Single person: monthly income under $2,015 and resources under $18,090.
- Married couple: combined monthly income under $2,725 and resources under $36,100.
Resources can include checking and savings accounts, retirement accounts, stocks and bonds. A primary home, personal belongings and one vehicle generally are not counted under Extra Help resource rules.
Social Security also excludes certain amounts intended for burial expenses when calculating resources. That exclusion is included in the higher resource figures commonly used for Extra Help screening.
Extra Help can reduce prescription copays to $5.10 or $12.65 in 2026
For people who qualify for Extra Help in 2026, covered prescription costs generally are no more than $5.10 for a generic drug and $12.65 for a brand-name drug at participating pharmacies.
Extra Help can also reduce Medicare Part D premiums and deductibles. The exact cost depends in part on the drug plan selected and the beneficiary’s circumstances.
People automatically qualify for Extra Help if they receive full Medicaid benefits, get help from a Medicare Savings Program paying their Medicare Part B premium, or receive Supplemental Security Income, or SSI.
People who do not qualify automatically can apply for Extra Help through the Social Security Administration. Applications can be submitted at any time of year.
Medicare Savings Programs can help pay Part A and Part B costs
Iowa’s Medicare Savings Programs are administered through Iowa Health and Human Services and include several eligibility categories. The amount of assistance depends on income, resources and the specific program for which a person qualifies.
For general screening in 2026, Iowa SHIIP lists an upper monthly income guideline of $1,816 for a single person and $2,455 for a married couple, with resources of no more than $9,950 for an individual or $14,910 for a couple.
Those figures do not mean every applicant receives the same coverage. Iowa HHS uses countable income and program-specific eligibility rules to determine which Medicare Savings Program applies.
QMB can cover more Medicare costs than other MSP categories
The Qualified Medicare Beneficiary program, or QMB, can help pay Medicare Part A and Part B premiums, deductibles and coinsurance for eligible beneficiaries.
Other Medicare Savings Program categories, including SLMB and Iowa’s Expanded SLMB program, generally focus on paying the Medicare Part B premium rather than deductibles and other cost sharing.
Iowa HHS also administers a program for certain disabled people who returned to work and lost premium-free Medicare Part A.
People approved for a Medicare Savings Program also receive Extra Help with Medicare prescription drug costs.
Income and resources are calculated under program rules
The dollar amounts used for Medicare assistance programs are not always the same as a person’s total bank balance or gross monthly deposits.
For Medicare Savings Programs, resources can include bank accounts, stocks, bonds, certificates of deposit and retirement accounts. A primary home and primary vehicle are generally excluded.
Income can include Social Security, pensions, wages, annuities, Veterans benefits and Railroad Retirement benefits, although program rules may exclude or disregard some income when eligibility is calculated.
Because those calculations can affect eligibility, people slightly above a published screening amount may still want to have their circumstances reviewed rather than assuming they do not qualify.
Iowans can apply for MSP through Iowa HHS
Applications for Medicare Savings Programs are handled through Iowa Health and Human Services. Residents can use the Iowa Medicare Savings Program information and application resources to review the program and access the HHS Benefits Portal.
Iowa SHIIP-SMP can also help residents understand the programs and complete applications. Counseling is free, confidential and available in English and Spanish.
SHIIP-SMP can be reached at 1-800-351-4664. The TTY number is 1-800-735-2942.
Extra Help applications remain available year-round through Social Security, while Medicare Savings Program applications are handled by Iowa HHS. Income and resource limits are updated periodically, so the figures in this guide apply to 2026.
Related: Iowa Benefits 2026: SNAP, WIC, Medicaid and more
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