How to Lower Your Medicare Costs in 2026

1. See if you qualify for Extra Help (LIS)

Extra Help, also called the Low-Income Subsidy (LIS), helps pay Part D prescription drug costs — including premiums, deductibles, and copays — for people with limited income and resources. Many who qualify do not realize it. If you are close to the income limits, it is worth applying through Social Security, because the savings on medications can be substantial.

2. Look into Medicare Savings Programs

Medicare Savings Programs are state-run programs that can help pay your Part B premium and, depending on the program, other cost sharing. Eligibility is based on income and resources, and the thresholds vary by state. Qualifying for one of these programs can also automatically qualify you for Extra Help, so it is often worth checking both at once.

3. Review your plan every year during AEP

Plans change their premiums, drug formularies, and networks each year. The Annual Enrollment Period (October 15 to December 7) is your chance to compare your current plan against the alternatives. A plan that was a great fit last year may cost more or drop a medication this year, so a yearly review helps you avoid overpaying out of habit.

4. Compare Part D drug formularies

Two drug plans with similar premiums can cover your specific medications very differently. Compare each plan's formulary, the tier your drugs fall into, and any prior-authorization rules. Sometimes a slightly higher premium plan dramatically lowers your total drug spending — and sometimes the reverse is true.

5. Choose the right Medigap vs Advantage path

Medicare Supplement (Medigap) and Medicare Advantage take different approaches to cost. Medigap usually means a higher monthly premium with very predictable out-of-pocket costs, while Advantage often means a lower or $0 premium with copays as you use care. The lower-cost choice depends on how much care you expect to use, so weigh both rather than assuming one is cheaper.

6. Use generics and preferred pharmacies

Ask whether a generic or lower-tier alternative is available for your prescriptions, and check whether your plan has preferred pharmacies that charge less than standard ones. Mail-order options can also reduce costs for maintenance medications. These small changes add up over a year.

Get a personalized cost review

The biggest savings usually come from matching the right plan and programs to your exact situation. A licensed advisor can check your eligibility for assistance and compare plans side by side at no cost to you.

Ready to find savings? Start with a free Medicare review.