Medicare’s three plans each cover a different aspect of your health care, including hospitalization and prescription drugs. Carefully choose your plans when the time comes.
Not everyone uses Medicaid, but most of us will eventually be on Medicare. Despite the ubiquity of Medicare and Medicaid, few understand their differences. Check out this five-point list of comparisons that might help make this maze of health care a little bit easier to navigate.
1. The federal government funds Medicare while the state — along with the feds — bankrolls Medicaid. Both are considered entitlement programs to some degree, but Medicare is for anyone 65 years and older. Medicaid provides health care for low-income households, children in the foster-care system and people with disabilities.
2. Your age isn’t a big factor in Medicaid coverage, but your economic status is a major one. Medicaid is considered a “means-tested” program. Participants must apply and meet certain qualifications regarding health and financial status to be eligible. And just because you qualify for Medicare, doesn’t mean you qualify for Medicaid, and vice versa.
3. Medicare comes in three parts: Part A (hospital bills), Part B (medical insurance) and Part D (prescriptions). Medicaid generally covers a wider base of services than the federal Medicare program.
4. Wherever you live, Medicare is basically the same. Since it is a federal program, the same rules and regulations apply whether you live in Corpus Christi, Texas, or Albany, New York. It also works when you travel to other states.
5. Each of the 50 states handles its own Medicaid program but still must follow federal guidelines. Medicaid benefits, therefore, differ from state to state.
