Medicare and Medicaid are two different government run programs that were started for the struggling older and/or low-income Americans to buy private health insurance. They are both social insurance programs that help alleviate medical bills.
Medicare is a federal program that provides health coverage if you are 65 or older, or have a disability. Medicaid is a state and federal program that provides health coverage if you have a very low income. You can be eligible for both Medicare and Medicaid (dual eligible) and they will work together to provide you with health coverage together.
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Medicare | Medicaid |
|
Federal Insurance Program |
Federal & State Assistance Program |
|
Funded by Payroll Taxes |
Paid for with Federal, State, & Local Taxes |
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One Program Nationwide |
Program differs State by State |
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For People 65 Years of Age & Older |
For People with Low Income |
| Beneficiaries Pay Deductibles & Part of Coverage |
Participants Pay Very Little to No Part of Coverage |
Medicare has 4 parts to it called Part A, B, C, and D. Medicare Part A is referred to as hospital insurance. Part A covers most hospital care, skilled nursing facility care, and nursing home care. Part B, AKA medical insurance, covers outpatient care and durable medical equipment. Part D is known as prescription drug insurance. Medicare Part C, or Medicare Advantage, provides Medicare through private health insurance companies.
Medicaid is only offered to low-income individuals, and when combined with Medicare, helps cover costs that Medicare doesn’t like dental care.
For more information, visit the medicaid.gov website or contact your local Social Security office.
Related Links
Medicare, Medicaid, and Dual Eligibility
4 Puzzling Medicare & Medicaid Stats You Should Know
