Medicare and Medicaid are two very different insurance programs; however, they are often mixed up. They are often confused probably because they are both government funded and their names are so similar. For those unfamiliar with the difference between Medicare and Medicaid there is a simple description to remember. To put it very basic but not totally accurate, Medicare is for the elderly and Medicaid is for those with low income.

Medicare is a federal government run benefit which pays for some medical services. Medicare covers people age 65 and over and sometimes the disabled. Medicare is considered an entitlement program and is not social welfare and so the benefits are more restrictive than Medicaid. Medicare provides a basic program of hospital insurance, visits to doctors, other health-care bills and a drug benefit program.

Medicaid is national health insurance program that is available to people of all ages who meet low income guidelines. Medicaid is a social welfare program funded jointly by the federal and state government, and is managed by the states. Medicaid provides a broader range of services than Medicare and pays for physician visits, prescriptions, home care, hospital services nursing home care, and other services. Those eligible for Medicaid are low-income parents, children, people with disabilities and seniors.

Labels: health insurance, medicare