Glossary
By: Source: AARP Bulletin Date Posted: 2005-11-15 10:22:00-05:00
Glossary
Catastrophic coverage: Medicare covers almost all your costs after you've spent $3,600 out of pocket in a year.
Copayment: The amount you pay toward each prescription.
Coverage: The amount your plan pays toward your drug costs.
Coverage gap ("doughnut hole"): The gap between initial and catastrophic coverage, a period in which you may pay 100 percent of your drug costs.
"Creditable" coverage: Drug coverage offered by others that is at least as good as standard Medicare coverage.
Deductible: The amount you pay each year before coverage kicks in.
Extra Help: A special program offering low costs and continuous coverage to people with limited incomes who qualify.
Formulary (preferred drug list): The drugs that a plan covers.
Generics: Drugs that have the same medical effect as brand-name drugs but usually cost less.
Initial coverage: The amount your plan pays prior to the coverage gap.
Late penalty: The extra amount you pay in premiums if you do not sign up for Medicare drug coverage when you first become eligible, unless you already have "creditable" coverage from elsewhere.
Medicare drug plans: Medicare-approved private insurance plans that offer drug coverage.
Medicare Part D: The official name of the drug program.
Medigap: Insurance that covers many out-of-pocket costs in Medicare.
Out-of-pocket spending: How much you pay for drugs from your own money.
Premium: What you pay a drug plan each month for coverage.
Standard Medicare drug coverage: The minimum required by law. Plans can offer better benefits and lower costs.
Total drug costs: What you pay plus what your plan pays for drugs.
Additional Related Links
Online Form
Share
preview