Medicare vs Medicaid
Medicare vs Medicaid
For many people, Medicare vs Medicaid are often used interchangeably with the assumption that both provide the same coverage. However, while the two plans are funded by the government they don’t share many similarities in the coverages they provide or who the intended beneficiary is. In order to make sure you select the best plan for your current situation, it is important to understand exactly what Medicare and Medicare are.
Understanding Medicare
Medicare is a government-funded policy that was created to assist U.S. citizens over the age of 65 covers the costs of medical care and treatments. By providing support to these seniors and their families, the financial burden left behind by medical costs is lessened tremendously. There are also special enrollments available for those who are under 65 years old and have qualifying disabilities. For example, those with final stage kidney disorders are able to gain coverage with Medicare.
Enrollment in the Medicare program is based on age and typically occurs during a 7-month stretch around the applicant’s 65th birthday. Anyone who decides to enroll in the Medicare program is expected to still pay for part of the cost of care through various vehicles such as deductibles, premiums, and copayments.
Coverage under Medicare is split into four different parts that provide benefits to policyholders. The first two parts, Part A and Part B, form Original Medicare and provide inpatient and outpatient coverage. Medicare Part C is a private healthcare alternative and a great way to add additional benefits such as routine dental, vision, and hearing care. Lastly, Medicare Part D is the prescription drug portion of the plan that helps with the cost needed for medicine.
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Understanding Medicaid
Medicaid is similar to Medicare in that it is also a government-funded plan, however, it wasn’t created to help a certain age demographic. Instead, Medicaid was created in an effort to assist low-income households with paying healthcare expenses. Included in the coverage are usually major hospitalizations, treatments, and routine medical care. The main goal of the plan is to make medical care affordable to those who are unable to obtain coverage because of strained finances.
One major benefit of the Medicaid program is that it typically doesn’t require beneficiaries to pay for any of the covered expenses. There are, however, special cases that may result in a small copayment. The qualification process for Medicaid is based largely on income. More specifically, to be eligible for benefits the applicant must have an income that is lower than 133 percent that of the poverty level.
While Medicaid does provide coverage for major hospitalizations and routine care, it is important to check with an agent for state-specific plans. No matter where you live you will have access to the following:
- Nursing facility services
- Inpatient and outpatient hospital services
- Surgical dental services
- Health screenings and applicable medical treatments
- Lab and X-ray services
Medicare, Medicaid, or Both?
Choosing Medicare vs Medicaid as an insurance plan is a big step in a person’s life and it is important to make the right decision. Selecting a plan that doesn’t provide the right coverages can leave you and your family vulnerable to major expenses should anything happen. Our team of expert agents are happy to answer any questions you have and help guide you through the enrollment process. To get started, give us a call today at 816-476-8191 for a free consultation.