When one government program just isn't generous enough ... build another. On the federal level, we have Medicare, which (allegedly) serves everyone on the basis of age. States are free to step in and offer additional programs. Alaska has SeniorCare, which pays premiums and deductibles involved with the new Medicare prescription benefit.
The program is means-tested, but expect those limits to rise over time. The news across the state this week is the failure of the legislature to come up with a new budget for SeniorCare. (The Juneau Empire has information; registration required.)
As part of the program, some 7,000 people also get checks for $120 each month. Those funds are set to run out at the end of the month, but the Governor Sarah Palin says she will rummage through the state budget and find money to fund the program for an extra month (see her announcement, PDF) while legislators get ready for a special session to resolve differences.