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Medicare Prescription Drug Coverage

Extra Help for People with Limited Incomes: Medicare Prescription Drug Coverage

Key Words with Definitions


Assets - The value of things you own, including real estate, bank accounts, stocks, bonds, mutual funds and cash.

Co-payment - A part of a prescription's cost that you pay out of your pocket. A fixed amount for each prescription.

Deductible - The amount you must pay each year for your medicine or medical treatment before your insurance starts to help pay your costs.

Income - Money you receive from Social Security, a job, retirement benefits, veterans' benefits, and other sources such as interest from investments.

Medicaid - A joint federal/state-funded program, run by your state, that provides medical coverage for families, older people, and people with disabilities. Note: the Medicaid program in your state may have another name.

Medicare Savings Programs - Programs to help people who are in Medicare (but do not qualify for full Medicaid benefits) pay for some of the costs of Medicare.

Premium - The amount you pay each month to receive insurance coverage.

State Health Insurance Assistance Program (SHIP) - A state program that offers free one-on-one counseling and assistance to people with Medicare and their families. The name for this program may vary from state to state.

Supplemental Security Income (SSI) - A federal income program that provides cash to meet basic needs for food, clothing, and shelter for aged, blind, and disabled people with limited incomes and assets.

Return to AARP's Medicare Rx page.

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