I often hear someone using the wrong terminology for explaining a Medicare or Medicaid benefit, so I would like to offer an explanation. While I will not attempt to provide all of the specific benefits of either program, suffice it to say they are two separate and distinct programs offered by the government.
Medicare is a purely federal program that is administered by the government for individuals who are 65 and older or disabled.
- Medicare Part D is the most familiar to most individuals, since it has been in the limelight in the past couple of years. It provides specifically for prescription drug and related expenses.
- Part A of Medicare covers hospitalization expenses, which are basically in-patient care costs.
- Part B pays for physician services as well as other related medical supplies and expenses.
- Part C of Medicare is what is known as Medicare Advantage, which works similar to a Health Maintenance Organization (HMO,) where you choose to obtain benefits such as Medicare Parts A and B from a specific organization that provides these services.
Medicaid is the federal program that is administered separately by each state. The U.S. government and the state each share the cost for the program, which is basically for individuals in need of medical care, hospitalization, and all types of medical services, but who are usually low income with nominal financial assets.
A person who qualifies for one program may not qualify for the other. In addition, Medicare is a program within which everyone has a right to obtain benefits once they meet the age requirements, but in order to obtain Medicaid benefits, you must meet financial requirements.
An easy way to remember the difference between Medicaid and Medicaid is that MediCARE attends to your care for medical expenses, and with MedicAID, you qualify only when all investments are depleted and you can no longer afford to pay for your own care.
by: Hyman G. Darling, Esq.
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