Medicare and Medicaid are both healthcare programs of the government.

These programs were established in 1965 and are funded by tax. These two programs are often confused with each other because they have almost the same name.

Some people can’t tell how the programs work and what they cover. Though they have the same meaning,

these are different programs with different coverage and eligibility requirements.

Generally, Medicare is for long-term healthcare for the elderly, while Medicaid is for low-income individuals and families.

Medicare

• Medicare covers healthcare programs under the federal government.

• It connects to Social Security, and it is for U.S. citizens from 65 years old and above.

• It can also cover the healthcare costs of people with disabilities.
  

  People can avail this program regardless of their income.

• It has a four-part program that provides
  • hospitalization coverage,
  • medical insurance,
  • privately purchased insurance, and
  • prescription drug coverage.

Hospitalization coverage and medical insurance are pays through the payroll deductions for your Social Security.

Meanwhile

 the privately purchased insurance and the prescription drug coverage will be paid through your own expense as a program participant.

Added the prescription drug coverage in 2006 due to the increasing demand since drug cost is becoming prohibitive.

Medicaid

• Medicaid, unlike Medicare, is a joint program of the federal and state government.

• It aims to provide healthcare coverage for families and individuals with low-income.
  • The federal government will cover 50% of the costs covered by the state’s Medicaid.

• The support given by the federal government will vary depending on the affluence of each state, though.

• The eligibility requirements of Medicaid are strict.
  • The requirements will depend on the state.
  • But generally, one of the essential requirements is that a family or an individual should have liquid assets of less than a few thousand dollars to be part of the program.

• There are only 50 Medicaid programs in the country, one for each state.

If you are still unsure which of the following healthcare programs you should get, you can have legal consultation to get the appropriate coverage for your health costs.

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