Both Medicare and Medicaid are forms of government-provided healthcare. Medicare benefits adults over the age of 65, while Medicaid serves those with limited incomes and resources. Some individuals are eligible for both Medicare and Medicaid, due to a combination of their age and income level.
Medicare is a federal health insurance program that covers a wide range of services to keep you healthy as you age. Medicare is generally intended for older Americans, but some younger people with certain disabilities can also receive this benefit. Medicare enrollees share the costs of coverage through monthly premiums, co-pays, and deductibles.
A federal agency called the Centers for Medicare & Medicaid Services runs Medicare. Because it’s a federal program, Medicare has set standards for costs and coverage. This means a person’s Medicare coverage will be the same no matter what state they live in.
Medicare is an umbrella term that includes four different categories: Medicare Part A (hospital insurance, or inpatient care); Medicare Part B (medical insurance, or outpatient care); Medicare Advantage Part C (voluntary private insurance); and Part D (private prescription drug coverage). Together, Parts A and B are often called Original Medicare.
Medicaid is a public health insurance program for people with limited income and resources, regardless of age. Because Medicaid is a joint program of the federal government and individual states, it can have a different name depending on where you live. Generally speaking, Medicaid enrollees have minimal or no out-of-pocket costs for covered healthcare expenses.
Actually, there are two core differences: who administers the program and who can enroll.
Medicare is managed by the federal government, and eligibility is based on age or disability.
Medicaid is managed by each individual state, and eligibility depends on income.
In a word, yes. If you are 65 or older, you qualify for Medicare. However, Medicare isn’t free, and the costs can quickly mount—especially if you have limited income. In this situation, you may also qualify for Medicaid. This is called being “dual eligible.” Medicaid can help you pay for the out-of-pocket costs associated with Medicare, which can be a crucial lifeline.
Through our Advice Line, Buckeye Hills offers no-cost, personalized Medicare guidance to help you find which option might best meet your healthcare needs and lifestyle. We can help you understand:
