Medicare vs. Medicaid
Medicare and Medicaid are government programs that assist individuals in paying their healthcare costs. Despite this significant similarity, Medicare is mainly offered to senior citizens or those with disabilities, whereas, Medicaid is based on financial need.
What is Medicare?
Medicare is a federal health insurance program designed to provide health coverage for individuals younger than 65 with disabilities, individuals who are 65 or older, and individuals who have End-Stage Renal Disease (ESRD). The program is divided into four parts: A, B, C, and D.
The costs of Medicare are fixed and set by the plans each year. The plan will decide how much is paid for the services you receive.
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What is Medicaid?
Medicaid is the federal and state program that assists individuals who have a low income but keep in mind that the application process could take weeks or even months to be processed.
To know if you are eligible for Medicaid, you must be in one of the following categories:
- You’re pregnant and fit the income requirements
- You have a child under 18 and have financial need
- You’re a senior citizen, blind, or have a disability
- You don’t have a disability or a child under 18, but still receive low income
The cost of Medicaid is based on income and the eligibility guidelines put in place by each state.
What do they cover?
The four parts of Medicare provide coverage for different services. Parts A and B, or Original Medicare, provides coverage for inpatient and outpatient services. This includes hospitalization, medically necessary services, and equipment.
Part C, or Medicare Advantage, provides the same coverage offered by Original Medicare. It also offers additional benefits, such as hearing, vision, dental, or prescription drug coverage.
Part D offers coverage for prescription drugs. It can be offered with a Medicare Advantage Plan, or it can be bought as a standalone plan while enrolled in Original Medicare.
The benefits offered by Medicaid vary by state, but there are certain services that are required to be covered:
- Inpatient/outpatient services
- Nursing home care
- Home healthcare
- Laboratory and X-ray services
- Medical transportation
- Tobacco-cessation counseling (for pregnant women)
Custodial care and nursing home care are two types of care the Medicare does not offer.
For more information regarding Medicare and Medicaid differences, reach out to Senior Savings USA.
