Glossary
Extra Help (Low-Income Subsidy / LIS)
A federal program that helps pay Part D premiums, deductibles, and copays for beneficiaries with limited income and resources.
Also known as: LIS, low income subsidy, Part D Extra Help
Quick answer
Extra Help, administered by SSA, dramatically reduces Part D drug costs for qualifying beneficiaries. Under the Inflation Reduction Act (effective January 1, 2024), the previous 'partial' subsidy tier was eliminated — every enrollee who qualifies now receives the full Low-Income Subsidy: $0 Part D plan premium (up to the regional benchmark amount), $0 deductible, and low fixed copays for generic and brand-name drugs that CMS adjusts each year. Once you reach the Part D out-of-pocket cap ($2,100 in 2026), covered drugs are $0 for the rest of the year.
Why it matters
Even though most TFL beneficiaries do not need Part D, those who choose to enroll (often because of an MA-PD plan) can save substantially if they qualify.
When you'll encounter it
Anytime income and resources fall within SSA's limits — application is free and can be filed online with SSA.
Impact on Medicare
Reduces Part D premiums, deductibles, and copays; provides one full-subsidy level to all who qualify.
Impact on TRICARE For Life
Does not affect TFL directly, but layered with TFL's pharmacy benefit it makes any rare Part D fill very inexpensive.
VA Healthcare considerations
Extra Help uses the same SSA income-counting rules as SSI and Medicare Savings Programs. Base VA disability compensation and base VA pension are generally counted as unearned income (subject to the applicable general income exclusion). Any portion of a VA compensation payment identified as Special Monthly Compensation, Aid & Attendance, or Housebound allowance is excluded under the federal SSI methodology, as are UME-driven portions of a VA pension. VA educational payments designated for tuition, books, fees, tutoring, or other necessary educational expenses are generally excluded; other portions may be countable depending on how the payment is designated.
Common misconceptions
- "You have to be on Medicaid to get Extra Help." — Many people qualify based on income and resources alone, without being Medicaid-eligible.
- "There's a partial Extra Help and a full Extra Help." — As of 2024, the partial subsidy was eliminated. Everyone who qualifies now gets the same full subsidy.
What should I do?
- 1Apply through SSA — application is free and can be done online.
- 2When comparing your assets to SSA's resource limit, remember SSA excludes your home, one vehicle, and up to $1,500 per person set aside for burial expenses.
- 3Reapply yearly if your finances change.
- 4Pair with a state Medicare Savings Program for maximum help.
Continue learning
— suggested by the knowledge graph- Enrolling in Medicare: timing, methods, and the military-specific rulesWhen and how to sign up for Medicare Parts A and B — and the timing that protects your TRICARE For Life activation.
- Prescription drug coverage under TRICARE For LifeWhy TFL beneficiaries use TRICARE Pharmacy (Express Scripts), not Medicare Part D — and how the four pharmacy options compare.
- Brand-Name DrugsFDA-approved drugs sold under a manufacturer's proprietary name — middle copay tier on the TRICARE formulary.
- Coverage DecisionA formal decision by a Medicare Advantage or Part D plan about whether — and how — it will cover a service, item, or prescription.
- Creditable CoverageNon-Medicare coverage that CMS deems at least as good as a standard Medicare Part D plan — TRICARE Pharmacy qualifies, so TFL beneficiaries don't need Part D.
- Creditable Drug CoveragePrescription drug coverage that CMS certifies is at least as good as standard Medicare Part D — including TRICARE Pharmacy and VA Pharmacy.
- Expedited AppealA fast-track appeal for situations where standard timeframes could seriously jeopardize the beneficiary's health or ability to regain function.
- Express ScriptsThe pharmacy benefit manager that administers the TRICARE Pharmacy Program, including TFL home-delivery and retail-network prescriptions.
- Generic DrugsChemically identical, FDA-approved equivalents of brand-name drugs — the lowest copay tier under TRICARE Pharmacy.
- What is Extra Help and do I need it on TFL?Extra Help (LIS) lowers Part D drug costs for low-income beneficiaries. TFL beneficiaries usually don't need it because TRICARE Pharmacy is already very low cost — unless you also enroll in a Part D plan.
- What are the TRICARE Pharmacy copays for retirees?MTF pharmacy: $0. Home Delivery (90-day): low. Retail network (30-day): higher. Non-network: highest and requires a paper claim. Exact amounts adjust annually.
- How much does Medicare Part B cost?Most people pay the standard Part B premium (roughly $202.90/month in 2026). Higher-income retirees pay IRMAA on top. Lower-income retirees may qualify for help paying it.
- Should I enroll in Medicare Part D?No, for almost every TFL beneficiary. TRICARE Pharmacy (Express Scripts) is creditable coverage and cheaper than most Part D plans. Adding Part D usually costs more without adding benefit.
- Should I enroll in a Medicare Advantage plan that includes Part D (MAPD)?Only if the MA plan otherwise makes sense for you. The Part D piece duplicates TRICARE Pharmacy — but you keep TRICARE Pharmacy as a fallback. Don't enroll just for the drug coverage.
Related glossary terms
Related Official Resources
Continue learning straight from the source. Every link below goes to an official government or DoD resource.
Last reviewed January 2026 against the 2026 Medicare & You and TRICARE For Life handbooks.