Do you have Medicare, Medicaid, or both, and what is the difference? A lot of people do not know the difference between Medicare and Medicaid. Both programs begin with the letter “M.” Both are health insurance programs run by the government. Some people can even qualify for both.
What is Medicare?
Medicare is the Federal Health Insurance program for Americans aged 65 or older or those with certain disabled. Most workers qualify by paying into Medicare throughout their working years. Medicare has four parts; Part A, B, C and D. In-patient hospital services is covered by Part A. General medical, such as doctors visits and labs, is covered under Part B. Prescription drugs are covered under Part D and are plans provided by private insurance companies. Part C is Medicare Advantage, which are plans that combine Part A and Part B into a single managed plan. They generally include Part D as well as additional benefits. Medicare Advantage plans are also offered by private insurance companies that contract with Medicare.
The Centers for Medicare & Medicaid Services publishes Medicare and You available online at their website. This publication is a user’s manual for Medicare.
What is Medicaid?
Medicaid is a state-run program that helps cover medical costs for some people with limited income and resources. Medicaid is medical insurance that covers hospital, general medical, and prescription drugs. While Medicaid does not require a work history like Medicare, it does have guidelines about how much income and resources you can have to qualify. People of any age can qualify for Medicaid, but it is generally for people with low income. Since each state runs its own Medicaid program, eligibility requirements and benefits can vary by state. Also, the names of the Medicaid programs can vary by state. For instance, Medicaid in Arizona is called AHCCCS (Arizona Health Care Cost Containment System).
Medicare and Medicaid are two of the major insurance programs that provide healthcare to the American public. Understanding each program, as well as how the two programs differ, can help you and those you care about find the right healthcare program.
