Medicaid vs Medicare - Difference and Comparison

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Medicare and Medicaid are government sponsored programs to provide health insurance in the United States.

1 Differences between Medicare and Medicaid
2 Related Articles
3 References

[edit] Differences between Medicare and Medicaid

[edit] Beneficiaries of Medicare vs. Medicaid

Medicaid is a health program for individuals and families with low incomes and resources. Medicare is a social insurance program that provides health insurance to people age 65 or older, people under age 65 with certain disabilities, and people of all ages with end stage renal disease. The Medicare Program provides a Medicare part A which covers hospital bills, Medicare Part B which covers medical insurance coverage, and Medicare Part D which covers prescription drugs.

In comparison, Medicaid is a needs-based social welfare or social protection program rather than a social insurance program. Eligibility is determined by income. The main criterion for Medicaid eligibility is limited income and financial resources, a criterion which plays no role in determining Medicare coverage. Medicaid covers a wider range of health care services than Medicare.

Some individuals are eligible for both Medicaid and Medicare (also known as Medicare dual eligibles).[8] In 2001, about 6.5 million Americans were enrolled in both Medicare and Medicaid.

[edit] Funding for Medicaid vs. Medicare

Medicaid is jointly funded by the states and federal government, and is managed by the states. States provide up to half of the funding for the Medicaid program. In some states, counties also contribute funds. On the other hand, Medicare is funded entirely at the federal level.

[edit] Benefits coverage in Medicare vs. Medicaid

Medicare hospital insurance (Part A) provides basic coverage for hospital stays, post-hospital nursing facility stays and home health care. Medicare medical insurance (Part B) pays most basic doctor and laboratory costs, and some out-patient medical services, including medical equipment and supplies, home health care, and physical therapy. Medicare prescription drug coverage (Part D) pays some of the costs of prescription medications.

In many states, Medicaid covers services and costs Medicare does not cover, including prescription drugs, diagnostic and preventive care, and eyeglasses.