Medicare vs. Medicaid: What's the Difference?

Medicare and Medicaid are both government funded programs that help provide health insurance for people in need. What is the difference between the two?

Medicaid and Medicare are both government funded programs that help provide health insurance for people in need. Medicare is not available to everyone, but medicaid is open to anyone who meets the requirements. Let's discuss the differences between these two federal programs, including eligibility requirements and what each program covers.

What is Medicare?

Medicare is a federal health insurance program for people who are 65 years old or older or younger adults with certain disabilities. There are four different parts to Medicare: Part A covers hospital care, Part B helps pay doctors' bills, Part C is a private plan you can buy instead of Parts A & B (sometimes called "Medicare Advantage"), and part D which covers drug prescriptions.

Who does Medicare typically cover?

Medicare is available for people over the age of 65 and younger adults with qualifying disabilities.

Individuals must be U.S. citizens or legal residents in order to qualify for Medicare coverage (with certain exceptions). However, individuals who are not legal resident aliens may qualify for limited benefits under Part A if they have lived in the United States for a minimum of five years. The individuals must have been a lawful permanent resident for at least five consecutive years, and the combined length of the residence in the U.S. before applying for Medicare cannot be less than three-quarters of an "equated" qualifying time period (not necessarily all in one stretch).

What is Medicaid?

Medicaid is a state-run health insurance program that provides medical services to those who otherwise would not be able to afford them. Medicaid eligibility requirements vary from state to state, so be sure to look into your own state's requirements to see if you qualify.

Who does Medicaid typically cover?

Medicaid normally covers low-income families, the disabled, and senior citizens. In some states, pregnant women may also receive coverage through Medicaid.

What is the difference between Medicaid and Medicare?

The difference between Medicaid and Medicare is that Medicaid is a health insurance program that helps those who are low-income or have disabilities afford their medical needs. Medicare, on the other hand, can either be purchased privately or through your employer if they offer coverage to employees and family members.

Can I be on both Medicare and Medicaid?

Yes, there are situations where adults may have both Medicare and Medicaid coverage, or "dual eligible." Eligibility for both insurance options require that you be eligible for one and then meet certain requirements for the other. For instance, if you are 65 or older and your income or disability qualifies for Medicaid in your state.

What are dual health plans?

Dual health plans have been created for those who qualify for both Medicare and Medicaid. Medicare Advantage Plans offer additional benefits such as dental and vision coverage. These types of plans also typically include services like wellness programs, transportation assistance, hearing aids, and part-to-full reimbursement for other prescriptions besides the ones covered under your core Medicare plan.

Medicare and medicaid are different, but it's possible to qualify for both

Medicaid and Medicare are different programs with different eligibility requirements. While Medicare is generally for those 65 and older, it is possible to be covered by it if you have certain disabilities. Eligibility for Medicaid depends on your income and assets. If you make under a certain amount or if you have no savings, then it's possible that you'll qualify for this program. Medicaid is more like an insurance policy whereas Medicare is more of a social contract between the government and its citizens with healthcare provided as part of the deal. If you're still confused, find a financial advisor who is an expert in the field and can help you plan for future medical costs.

Related Articles

• 4 Ways to Financially Prepare Yourself for New Medical Challenges
• Planning for Healthcare Costs in Retirement is a Personalized Process
• Save on Healthcare: Take Advantage of Preventative Care
• Top Healthcare Cost Your Retirement Plan Should Address