What’s the Difference Between Medicaid and Medicare?

Introduction

Medicaid and Medicare are two of the most important government-funded medical assistance programs in the United States. Many people have a basic understanding of what each program does, but may not be aware of the differences between them. In this article, we will explain the key differences between Medicaid and Medicare, and how these programs impact individuals and families.

Explaining the Differences Between Medicaid and Medicare

In order to understand the distinction between Medicaid and Medicare, it is important to first define each program. Medicaid is a health care program that provides medical coverage for certain groups of people who meet low-income and other eligibility criteria. Medicare is a federal health insurance program that covers people age 65 and older, as well as those with certain disabilities or end-stage renal disease.

The main difference between Medicaid and Medicare is the eligibility requirements. Medicaid is generally available to those with limited incomes, while Medicare is only available to those who are 65 and older, certain disabled people, and people with end-stage renal disease. Additionally, Medicaid covers more services than Medicare, including long-term care, home health care, and prescription drugs. Medicare, on the other hand, only covers hospitalization, doctor visits, preventive care, and some prescription drugs.

Another key difference between Medicaid and Medicare is the cost. Medicaid is funded jointly by the federal government and individual states, so the cost of coverage varies from state to state. Medicare is funded primarily by the federal government and premiums paid by beneficiaries, and the cost of coverage is the same nationwide. Additionally, Medicaid beneficiaries may have to pay co-payments or deductibles, while Medicare beneficiaries do not.

Impact of Medicaid and Medicare on Individuals and Families

The history of Medicaid and Medicare is intertwined with the civil rights movement, when access to quality healthcare was not a right for all Americans. In 1965, the Social Security Act was amended to include the Medicare program, which provided access to health care for seniors over 65. The following year, the Medicaid program was established to provide access to health care for low-income individuals, regardless of age.

Today, Medicaid and Medicare remain important programs for providing healthcare access to vulnerable populations. Medicaid is the primary source of health insurance for low-income individuals and families, covering approximately 74 million people in 2019. Medicare, on the other hand, covers nearly 60 million seniors and people with disabilities, making it one of the largest health insurance programs in the country.

Conclusion

Medicaid and Medicare are both important government-funded programs that provide access to healthcare for vulnerable populations. While both programs provide access to healthcare, there are several key differences between them. Medicaid is available to those with limited incomes, while Medicare is available to seniors, certain disabled individuals, and those with end-stage renal disease. Additionally, Medicaid covers more services than Medicare and is funded differently, with Medicaid funded at the state level and Medicare funded at the federal level. Understanding the differences between these two programs is essential for ensuring access to quality healthcare for all Americans.

Resources

For more information about Medicaid and Medicare, visit the Centers for Medicare & Medicaid Services website: https://www.cms.