People seem to have difficulty understanding the differences between Medicare and Medicaid. Although both are government funded, there are significant differences between the two healthcare programs. Much like the differences between Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI), this can also be difficult for people to differentiate.
Medicaid
Assistance from the Centers for Medicare and Medicaid Services allow each state to operate its own Medicaid program, rather than the federal government doing so. Medicaid is a program, much like SSI, for those in need who lack certain financial resources. Also like SSI, Medicaid provides medical coverage for the elderly and disabled, as well as some families with children. The federal government establishes eligibility rules for Medicare, but eligibility for Medicaid is determined by each individual state and eligibility can be different depending on what state a person lives in. Each state also decides the specific coverages of Medicaid and the services provided. To look at a state-by-state comparison of Medicaid programs click here.
Medicare
Medicare is much like SSDI because it is an earned benefit program. Eligibility for Medicare begins at age 65, or earlier if a disabled worker meets Social Security’s disability rules. Just like SSDI, workers pay into Medicare through payroll taxes from employment. There are different parts to Medicare, including parts A and B. Medicare Part A is hospital insurance, and Part B is regular medical coverage provided by Social Security. Additionally, there are two other parts of Medicare, Part C and D. Part C is called Medicare Advantage and Part D is a prescription drug plan to supplement regular Medicare coverage. Social Security also administers a program named Extra Help, to assist low-income and low-resource people pay for Medicare premiums and other healthcare costs.
All of these different types of programs can be confusing to navigate, but help understanding options for Medicare can be obtained by visiting the Medicare help site.
