In 2021, around 27.2 million, or 8.3 percent of people didn’t have health insurance. Health insurance is important to be able to access quality healthcare and protect people from financial ruin.
Deciding to get health insurance is a great step. With this, you won’t have to worry too much in case you are faced with a health problem.
Medicare and Medicaid are two types of health insurance options in the United States. They provide coverage to different groups. However, you may not be quite familiar with these two.
Continue reading so that you will be able to understand the difference between Medicare and Medicaid.
Overview and Eligibility Requirements
Medicare and Medicaid are two federal government programs that are designed to help cover medical costs. Do you know that they offer different types of coverage?
Medicare is a federal health insurance program. This is primarily for individuals who are 65 and over and certain people with disabilities. Those eligible include U.S. citizens and legal permanent residents who have paid Medicare taxes for at least 10 years.
On the other hand, Medicaid is a joint federal and state program. This is designed to provide health insurance for individuals with low incomes. It is also for those with limited resources. Eligibility requirements for Medicaid vary from state to state.
Generally, this includes all citizens of the United States with limited income and financial resources. This is also for pregnant women, children, and people with disabilities who meet certain income guidelines.
Services Covered by Medicare and Medicaid
Medicare provides coverage for hospital and medical care. This includes doctor visits and preventive services.
On the other hand, Medicaid covers most medical expenses not covered by Medicare. This includes nursing care services, prescription drugs, and home health care. It also includes mental health services provided in a state-licensed facility.
Medicaid benefits may also cover other services such as vision, dental, and personal care. Medicare and Medicaid can provide complementary coverage. This is to ensure all individuals have access to medically necessary health care.
Medicare does not pay for long-term care. But, Medicaid pays for nursing home care and assisted living when the person’s income and resources meet certain levels.
Cost Considerations
Cost considerations for Medicare and Medicaid vary greatly. Medicare premium and co-payment costs are the responsibility of the individual. But, Medicaid costs are typically either free or have greatly reduced co-payments associated with their program.
Additionally, while Medicare may not cover the entire cost of services rendered, Medicaid is typically the payer of last resort. It will often pay for the remainder of services not covered by other sources. Ultimately, when deciding between Medicare and Medicaid, it is important to compare costs and consider eligibility requirements for each program.
Discuss what you need with a Medicare and health insurance agent. This will help you widen your knowledge about the different types of health insurance and choose the right one for you.
Choose the Best by Knowing the Difference Between Medicare and Medicaid
Medicare and Medicaid are both healthcare coverage options for people with limited income and assets. They have key differences, such as who is eligible for the coverage and the types of services each covers. Knowing the difference between Medicare and Medicaid helps you choose the best health insurance.
It is very important to get to know the Medicaid and Medicare policies before you make a selection.
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