Medicare and Medicaid have similar-sounding names. They’re also both government-sponsored programs designed to help Americans cover healthcare costs for US citizens. Thanks to these similarities, many people get these two confused.
The two similarities above, however, are where it ends. When comparing Medicare vs. Medicaid, it’s essential to know these are two very different programs. Most people will only qualify for one or the other (with a few exceptions).
Ready to learn the differences between these two government healthcare programs? Continue reading below.
Who They Cover
Medicare is a program designed only for seniors and those with long-term disabilities. Almost everyone over the age of 65 is eligible for this government-sponsored program. People who have been told they can’t work because of their disability by their doctor are also qualified.
On the other hand, Medicaid is designed explicitly for low-income people and has significantly stricter guidelines on qualifying. The qualifications are based on household income. Based on the number of related people living in a home, a person must be within a certain percentage of the state’s poverty level.
Available Plans
Medicare is broken down into four different parts, each assigned a letter. Each part covers a different part of potential healthcare costs. They are as follows:
- Medicare Part A – covers hospitalization costs
- Medicare Part B – basic medical insurance coverage
- Medicare Part C – advantage plans (dental, ear, eye, or additional medical coverages)
- Medicare Part D – covers prescription costs
Many people with Medicare find they need additional healthcare coverage beyond what the plan offers. Due to this, many seniors struggle to get the best Medicare supplement leads.
Medicaid, on the other hand, has plans hosted by various state or national health insurance companies. The coverage includes full health benefits and may include other things like eye care, dental, and more.
Costs
Medicare programs have both deductibles and copays that vary based on your income and the plan you choose. Medicaid generally doesn’t have either and provides full health insurance coverage. People in a certain income bracket may have small copays they’ll need to pay.
Coverage
The coverage offered by Medicare varies wildly, based on which part you have. People with multiple parts (such as both basic medical coverage and prescriptions) may have more coverage but will end up paying more. Most people require a Medicare supplement plan to have their health needs reasonably covered.
The coverage offered by Medicaid is generally comprehensive. The program covers all essential healthcare needs for both adults and children, including pregnant women. The tradeoff is that almost everything beyond routine yearly checkups will require authorization from the insurance company the plan is through.
More Questions About Medicare vs. Medicaid?
Both Medicaid and Medicare are government-sponsored healthcare programs. The two are very different in their costs, coverage, and who is eligible for them.
Do you have more questions about Medicare vs. Medicaid?
Browse our other posts. You’ll find many blogs on related topics to help you learn even more on the subject of Medicare, Medicaid, and other health insurance options.
