Difference Between Medicare and Medicaid

The high cost of hospitalization has increased the need for medical insurance.  Both the federal government and the states have been pushed to look at this problem seriously and the outcome is the different insurance schemes that have been launched to support the citizens who cannot afford to pay the exorbitant medical bills. This article focuses on this aspect and on Medicare advantage Plans 2021.

The US government has sponsored a couple of schemes to alleviate the problems faced by people who are unable to pay the high medical bills. In the year 1965, the federal government launched these two programs, Medicare and Medicaid, with funds generated by the collection of taxes.

Medicare is a health coverage program for anyone aged 65 and above, or who is below 65 years but is availing the government sponsored social welfare schemes for the disabled for a certain duration of time, or for those who are below 65 and are suffering from Kidney problems.

Medicaid is a health insurance program eligible for people of all ages, but who have no access to extra monetary resources to meet their medical bills. Medicaid cover does not entail any payment for the services covered. While every individual above 65 years of age is eligible to enjoy the benefit of Medicare, the eligibility criteria for Medicaid is very strict and may vary from one state to another.

The eligibility for this scheme depends on the amount available in the recipient’s account.  However, if the income is higher you may not be eligible for this scheme.  The amount may vary in each state.  If you are covered under Medicaid, you become eligible to claim insurance under Medicare once you reach 65 years.  You can also simultaneously enjoy the benefit of Medicaid. However, the coverage may vary in accordance with one’s income.  Individuals whose incomes are low will receive all the benefits without any change.

The benefits of Medicaid are:

• Hospitalization charges
• Laboratory Service charges
• Professional consulting services
• X-ray charges
• Family planning expenses
• Nursing resources and a few other services

The individual states have the right to add further benefits like services rendered by an optometrist, drug coverage, ambulance charges, physiotherapy charges, dental services, and cost of prosthetic devices.

Some people need funding for longer periods of time. In such cases, the Medicare program does not provide cover nor does any policies on offer by private insurers.

In such cases, Medicaid is used as it has provisions for covering medical care for longer duration. Medicaid is the largest program in the country to support health care funding of long duration. For people who have fully exhausted their savings by spending on health care, this program assists in taking care of the nursing cost.

These two programs have been a great asset for citizens all these years.