Everyone deserves to have access to reliable health insurance, but it is important for you to make sure you have the right health coverage. Insurance companies offer a wide variety of plans, and two forms of health coverage that people have probably heard of include Medicare and Medicaid. Even though they sound similar, these government health coverages vary significantly in terms of their benefits, their eligibility requirements, and who is responsible for orchestrating the health coverage When it comes to Medicare and Medicaid for people over 65, what do you need to know?
A Quick Overview: Medicare vs. Medicaid
Medicare and Medicaid are both programs that are sponsored by the US government to provide health coverage to specific populations of American citizens. They were established in 1965, and the programs are funded by taxpayer dollars.
What is the difference in Medicare and Medicaid?
Medicare is a program that is run at the federal level for people who are aged 65 years or older. In addition, people who are under the age of 65 can qualify for Medicare coverage if they have specific types of disabilities. Apart from these disabilities and income requirements, there are no other eligibility requirements that have to be met. Medicare is also a program that is generally operated at the federal level.
Medicaid has a similar name, but it has a different set of eligibility requirements. Medicaid is designed for people with limited income. For individuals who do not otherwise have access to affordable health insurance, Medicaid can assess them. The eligibility requirements for Medicaid can vary from state to state, as Medicaid is a program that is generally operated at the state level.
Medicare Is a Program That Has Four Parts
As mentioned above, Medicare is a health insurance program that is designed for people who are age 65 or older. A lot of people in the United States get health insurance from their employers. When people retire, they may no longer be employed, and they need another source of health insurance. Medicare provides health insurance for them.
The four parts of Medicare include:
- Part A: Medicare part A is hospitalization coverage. To qualify for Medicare part A, you must have worked for at least 10 years and paid Medicare taxes during those years. As an alternative, your spouse could have met these requirements to make you eligible for Part A. In general, there is no premium required for Part A, but you may be responsible for deductibles or co-insurance.
- Part B: If you are eligible for Part A, you also qualify for Part B. This coverage helps pay for medically necessary services and equipment. This includes preventative care visits, lab visits, and imaging requirements. There is usually a premium for Part B coverage, and it can be deducted from your Social Security benefits.
- Part C: If you are eligible for Parts A and B, you are also eligible for Part C. This is also called a Medicare Advantage plan, and it is typically offered by private companies that have been approved by Medicare. Medicare Advantage plans can provide additional coverage for prescription drugs, dental care, and vision care.
- Part D: Medicare Part D provides additional prescription drug coverage. You should only think about enrolling in Part D if the plan you get from Medicare Advantage does not provide appropriate prescription drug coverage.
Everyone is in a slightly different situation, so you need to think carefully about which of the Medicare plans above is right for you.
What About Medicaid?
Medicaid is a plan that is orchestrated by the federal government but is administered by the state. Therefore, every state has slightly different eligibility requirements regarding Medicaid covered. This is a program that has been designed to help people with a low income cover their medical costs. In general, individuals who have incomes that are 130 percent of the federal poverty level or lower should qualify for Medicaid, but this line can vary from state to state.
Medicaid is a joint federal and state program that provides free or low-cost health coverage to millions of Americans, including some low-income people, families and children, pregnant women, the elderly, and people with disabilities.
Individuals who are covered by Medicaid generally do not pay anything for their services. Because the program has been specifically designed to help people who do not have a lot of resources, the requirements are generally strict. Medicaid coverage can pay for doctor visits, hospital stays, lab work, images, and other types of basic medical necessities. Additional benefits might be added, but they vary from state to state.
Understand the Differences Between Medicare and Medicaid
This is a brief overview of the differences between Medicare and Medicaid. When it comes to Advantage Plans Medicare vs Medicaid, there are a lot of differences to understand. Just remember that Medicare plans are meant for people who are older and Medicaid plans are meant for people who do not have a lot of resources at their disposal. Rely on a professional who can help you find the right health insurance plan to meet your needs.