What's the difference between Medicare and Medicaid?

 

While both Medicare and Medicaid are government-funded programs that help with healthcare costs, they have several key differences in eligibility, coverage, and funding:

Eligibility:

• Medicare: Primarily for individuals 65 years or older and some younger individuals with disabilities. Eligibility is based on work history and contributions to Social Security.
• Medicaid: For individuals with low income and limited resources, regardless of age. Eligibility is based on income and assets, varying by state.

Coverage:

• Medicare: Covers hospital stays, doctor visits, some preventive care, and prescription drugs through separate Part D plans. Out-of-pocket costs like deductibles and copays exist.
• Medicaid: Covers a wider range of services than Medicare, including long-term care, dental care, vision care, and home health care, often with little or no cost to the beneficiary. Coverage varies by state.

Funding:

• Medicare: Funded primarily by payroll taxes and contributions from beneficiaries.
• Medicaid: Funded jointly by the federal government and individual states, with the federal government paying a matching share of state spending.
• Medicare: Beneficiaries typically pay monthly premiums for Part B and Part D, and may also have deductibles, copays, and coinsurance for covered services.
• Medicaid: Beneficiaries generally pay little or nothing for covered services.
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