If you are here reading this article then I am sure you are here looking for useful answers on what is the difference between Medicare and Medicaid. If yes, then read on.
What Is The Difference Between Medicaid And Medicare?
Medicaid and Medicare are government-sponsored schemes exclusively designed for helping citizens to cover their healthcare costs. Since these health schemes have identical names, people often get confused and this is when they wonder — what is the difference between Medicare and Medicaid? How these two programs actually work? What offers it? And what sort of coverage these 2 health schemes offer? Let me clear you each in detail below.
Well the government of United States in the year 1965 launched both these programs. Even though they sound same but have distinct eligibility requirements as well as coverage. Medicare is exclusively designed for people who need help care on long-term basis and is meant for elder or senior citizens whereas Medicaid also covers the healthcare costs but is for poor.
Note On Medicare
This basic federal program is attached to the Social Security. The Medicare health care plan is accessible to the entire citizens of United States of age 65 or even older. It covers people, who have some disabilities. This plan is accessible in spite of of individual’s income. It comprises of 4 parts:
- Part A = The hospitalization coverage
- Part B = The medical insurance
- Part C = Purchased privately supplemental insurance, which provides further services through which the entire Medicare services offered by Part A + Part B is accessed.
- Part D = This covers prescription drugs.
The parts A & B are actually paid for payroll taxes & deductions with Social Security earnings. Parts C & D are actually paid by the program participants from their pockets. In the year 2006, the Part D (covering prescription drugs) was appended to the plan in order to address growing concern of extreme drug costs.
Note On Medicaid
This is the joint plan offered by federal & state government. It helps the low-income families and individuals in paying off the cost related with medical & long-term custodial health care. Federal government actually funds to a maximum of 50% on cost of every state’s Medicaid plan. Unlike Medicare, the Medicaid plan is accessible to everyone. However, it has some strict eligibility needs. The rules differ by state but the plan is designed for helping the poor. Many states want the Medicaid receivers to have not more than few 1000 dollars as liquid assets. This is the primary criterion for a candidate to take part in the plan. There are even few income restrictions.
While this scheme is mandated federally for serving the poor, only being poor might not be sufficient to be eligible for Medicaid. The other eligibility necessities are there to make sure that the plan serves particular groups like families, children, pregnant women, the disabled, the elderly and caretakers of kids.
Services differ by state. Nevertheless, federal government commands coverage for following services:
- Laboratory services
- Doctor services
- Nursing services
- Family planning
- Nursing services for people over the age 21
- Medical & surgical dental service
- Home healthcare services
- Pediatric & family practitioner services (nurse)
- Clinic treatment
- Screening, diagnosis & treatment services to people under the age 21
- Midwife services
Every state has an option of incorporating further benefits like coverage of prescription drugs, optometrist services, medical transportation, eyeglasses, prosthetic devices, dental services and physical therapy. People covered with the Medicaid plan actually pay nothing.