Medicaid and Medicare are both federal assistance programs that provide certain healthcare-related benefits to eligible individuals. While Medicaid is designed for low-income people, however, almost anyone 65 years or older can apply for Medicare.
Due to this essential discrepancy, the first program is considered need-based, and the latter falls under the umbrella of entitlement programs. In the case of Medicare, recipients have the right to receive benefits because their past wages and/or self-employment tax payments contributed to the program.
Eligibility
There are no age restrictions for Medicaid. To qualify, an individual must either meet financial guidelines or be a member of the "categorically eligible" group, which includes pregnant women, children and people with certain disabilities, such as blindness or permanent renal disease (kidney failure) requiring dialysis or a transplant. The criteria for both kinds of applicant are established by a combination of federal and state law.
In general, a person must be 65 or older in order to receive Medicare. Yet, the program does assist younger people who suffer from Lou Gehrig's disease (amyotrophic lateral sclerosis), permanent renal disease requiring dialysis or a transplant, or certain disabilities covered by social security.
Overlap
It's possible for a person to receive Medicaid and Medicare coverage at the same time if they meet the separate eligibility requirements for both programs. One benefit of having such dual coverage is that Medicaid meant for low-income recipients will pay for some medical expenses that Medicare will not, such as various prescribed medicines.
Administrators
Although Medicare and Medicaid are both federal assistance programs, Medicaid is administered by each state independently. Consequently, while the rules and benefits relevant to Medicare are basically the same across the United States, Medicaid has different stipulations and coverage determined on a state-by-state basis. People applying for Medicare should contact a social security office and those interested in Medicaid should consult their local welfare or social services department.
Coverage
The Medicare program is divided into three sections: Part A, hospital insurance, helps offset the cost of hospital-related expenses and home healthcare; Part B, medical insurance, applies to some basic medical expenses, including doctor visits, medical equipment, lab work, and outpatient services; Part D partially covers prescription drugs. Medicaid applies to many of the same medical services and expenses that Medicare does and, depending on the state, some that Medicare doesn't, such as eyeglasses.
Costs
Parts A, B and D of Medicare all require the covered individual to make some form of payment. Part A has no premium, but co-payments kick in for longer hospital stays. Parts B and D obligate recipients to pay up to 35 percent of the bill for doctor visits and up to 25 percent for prescription medications, in addition to monthly premiums.
Medicaid, on the other hand, typically doesn't require any co-payments, and it also may cover the monthly premiums and 20 percent payments required by Medicare. As a result, people who receive Medicare should also apply for Medicaid if needed and possible.
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