Medicare vs Medicaid

While Medicare is a federal government-sponsored healthcare program primarily for seniors, Medicaid is for low-income families and is managed by both the state and federal governments.  Medicare and Medicaid are different in terms of who they cover and how they are funded and governed.

Medicare is a federal insurance program.  Medical bills are paid from trust fund which those covered have paid into.  It serves people over 65 primarily, whatever their income; and serves younger disabled people and dialysis patients.  Patients pay part of the costs through deductibles for hospital and other costs.  Small monthly premiums are required for non-hospital coverage.

Medicaid is a federal-state assistance program.  Medicaid bills are paid from federal, state and local tax funds.  It serves low-income people of every age.  Patients usually pay no part of costs for covered medial expenses.  Sometimes, a small co-payment is required. 

Peter Madine - Financial Consultation
  Here are some important facts for Medicare vs Medicaid:
  Medicare vs Medicaid


Medicaid is a social health care program for families and individuals with low income and resources. The Health Insurance Association of America describes Medicaid as a "government insurance program for persons of all ages whose income and resources are insufficient to pay for health care. Medicaid is the largest source of funding for medical and health-related services for people with low income in the United States. It is a means-tested program that is jointly funded by the state and federal governments and managed by the states, with each state currently having broad leeway to determine who is eligible for its implementation of the program. States are not required to participate in the program, although all currently do. Medicaid recipients must be U.S. citizens or legal permanent residents, and may include low-income adults, their children, and people with certain disabilities. Poverty alone does not necessarily qualify someone for Medicaid.

Low Income Subsidy (LIS)

Medicare beneficiaries may also qualify for Extra Help with their Medicare prescription drug plan costs. The Extra Help is estimated to be worth about $4,000 per year. To qualify for the Extra Help, a person must be receiving Medicare, have limited resources and income, and reside in one of the 50 States or the District of Columbia.  These Medicare Savings Programs help people with limited resources and income pay for their Medicare expenses. The Medicare Savings Programs may also help pay for your Medicare Part B (medical insurance) premiums. For some people, the Medicare Savings Programs also may pay for Medicare Part A (hospital insurance) premiums, if any, and Part A and B deductibles and co-payments.  Further advice is available on these programs.