Unfunded mandates – Programs that the Federal government requires States to implement without Federal funding.

Entitlements – Programs such as unemployment insurance, disaster relief, or disability payments that provide benefits to all eligible citizens.

Means-tested entitlements – Programs such as Medicaid and welfare under which applicants must meet eligibility requirements based on need.

Public assistance - Aid to the poor; “welfare.”

Social insurance – Programs in which eligibility is based on prior contributions to government, usually in the form of payroll taxes.

Social Security – A combination of entitlement programs, paid for by employer and employee taxes, that includes retirement benefits, health insurance, and support for disabled workers and the children of deceased or disabled workers.

Medicare – National Health Insurance program for the elderly and disabled.

Medicaid – Federal program that provides medical benefits for low-income persons.

Health maintenance organization (HMO) – Alternative means of health care in which people or their employers are charged a set amount and the HMO provides health care and covers hospital costs.

Medical savings account – Alternative means of health care in which individuals make tax-deductible contributions to a special account that can be used to pay medical expenses.