Medicare vs. Medicaid: What’s the difference?

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.

 

Medicare

Medicaid

Federal Insurance Program

Federal & State Assistance Program

Funded by Payroll Taxes

Paid for with Federal, State, & Local Taxes

One Program Nationwide

Program differs State by State

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

The Differences Between Medicare and Medicaid

3 Ways to Save Money on Your Health this Fall


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