The Differences Between Medicaid and Medicare

This article provides a brief look at the difference between Medicaid & Medicare.

The first program is Medicare. Medicare is a social insurance program that is governed by the federal government and began in 1965. This plan pledges to provide individuals 65 years of age and older and young people with disabilities with health insurance. It is different from private insurance because it distributes the fiscal threat related to illness across the public to shield everyone. The second program is Medicaid. Medicaid is the largest health program that exists which was begun for individuals with low resources and low incomes, their children and persons with certain disabilities. The program provides health-related and medical services for people with restricted incomes who reside in the United States. It is financed by federal and state governments, but is administered by the states. The lack of money is not the sole qualification for Medicaid.

Medicaid & Medicare Enrollees

Medicaid & Medicare provide the participants with different services. Medicaid enrolls participants into managed care plans created by the federal government. These health plans receive a fixed monthly stipend from the state for care. The plan is then responsible for most or all of the individual’s health care requirements that are enrolled in the plan. Medicare offers all persons enrolled in the plan a distinct benefit. Care is segmented into two parts. Part A is hospital care and Part B is outpatient services. Medicare presents a choice of traditional service, which is an open network, single payer plan or a network plan where the government funds private healthcare that is Part C. Part D of the plan is the coverage of outpatient prescription drugs via exclusive prescription drug programs or Medicare Advantage program for prescription drugs.

Medicaid & Medicare Today

Medicaid & Medicare assist their clients every day with medical and health concerns. Medicaid participants are enrolled in managed care programs provided by state governments. This is approximately 70% of all people in the plan. Children that are poor and the parents of these children utilize this plan. Individuals that are disabled or aged take part in a payment structure in which services are paid for separately. Medicare provides health insurance to almost 50 million people. These people are the aged, ill and poverty stricken of society who could otherwise not afford health care. Medicare usually covers one half of the cost of health care for individuals. The enrolled individuals must pay for the remainder of the healthcare costs.

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