What Is The Difference Between Medicare And Medicaid Insurance?
All American Seniors should know the difference between Medicare and Medicaid Insurance
People are often confused about the difference between Medicare and Medicaid insurance. The similar spelling can be confusing for some. Both of these government programs that are intended to help people with the costs of healthcare were launched in 1965 and are funded by taxes. However, Medicare and Medicaid insurance are notably different from one another and have distinct requirements for eligibility.
What Is Medicare?
One of the differences between Medicare and Medicaid insurance is that Medicare is a federally-sponsored program that is attached to Social Security benefits. It is available to senior Americans who are 65 or older as well as people who have particular disabilities. Medicare is available no matter what the person’s income. There are four parts to Medicare, each covering a different aspect of healthcare costs:
1. Part A covers hospitalization
2. Part B is basic medical insurance
3. Part C is supplemental insurance that can be purchased separately Medicare recipients. This supplemental insurance provides other services.
4. Part D is coverage for prescription drugs.
What is Medicaid?
Medicaid is a program funded by both the federal government and individual state governments. This program was created to provide financial aid for low-income people of all ages or who do not have their own health insurance. It is based entirely on need and the person’s income. In some cases the recipients don’t pay any costs for medical expenses that are covered by Medicaid and in other cases patients must pay a co-pay. Each state has its own requirements.
Other differences between Medicare and Medicaid insurance is that Medicaid covers a broader range of medical costs than what Medicare does. While income is the determining factor for eligibility, people who request Medicaid coverage must also fall into one of the following categories:
• People over 65
• People with a disability
• Women who are pregnant
• Parents of children