Medicare vs. Medicaid While Medicare is a federal government sponsored healthcare program primarily for seniors, Medicaid is for low-income families and is managed by both state and federal governments. Medicare and Medicaid differ in terms of who they cover, and how they are funded and governed. Both Medicare and Medicaid were created when President Lyndon B Johnson signed amendments to the Social Security Act on July 30, 1965.
Medicare is a Federal health insurance program for people who are 65 or older and certain disabled people. This pays for the hospital and medical care needed for the elderly and disabled.
The program consists of four parts. Part A – covers hospital stays, care in a skilled nursing home and it covers some home health care. Part B – covers doctors services, outpatient services, medical supplies, home health care costs. This does have a monthly premium and you have an annual deductible that you have to meet before your coverage begins. Part C – is an advantage plan that is offered by private insurance companies that work with Medicare to provide you with part A and B. The advantage plan also costs extra. Part D – adds 75% prescription drug coverage to your plan. This also requires you pay a premium and deductible.
Medicare is paid by collecting taxes through FICA. Usually paid by the employee or employer. Moneys are set aside in a fund that the government uses to pay doctors, hospitals and insurance companies. It also collects funding from copays, premiums and deductibles.
Medicaid is a joint federal and state program that helps with medical costs for people with limited income. The program is geared towards people with low income but you can also qualify based on age, pregnancy status, disability status and citizenship. Medicaid also covers nursing home and personal care services that are normally not covered by Medicare.
Medicaid eligibility guidelines…