Medicare Vs. Medicaid – The Definitive Guide
From: quotewizard.com
Do you get Medicare and Medicaid confused? You’re not alone. Read our definitive guide to Medicare vs. Medicaid to find out the differences between the two, who’s eligible, and what each covers.
Every year, millions of Americans receive medical assistance through a pair of government funded programs: Medicare and Medicaid. Although they are often confused, they were created to help two separate groups in need of medical coverage.
Medicare provides health benefits to senior citizens. Those receiving care usually have to be at least 65 years old. Medicaid helps low-income families or children in need. Eligibility is generally based on income levels.
We’ll compare Medicare and Medicaid by looking at the history, eligibility, and benefits of both programs below.
History and Recent Changes
Medicare
The government created Medicare because senior citizens weren’t able to find quality healthcare at an affordable cost. President Lyndon B. Johnson signed the program into law on July 30, 1965. Initially, it only included Medicare Part A and Part B. This is why they’re sometimes referred to as “Original Medicare.”
Over the years, this federal program expanded to cover more people, including those who are disabled or have end-stage renal disease. In 2003, regulations were created to allow private insurance companies to provide Medicare Parts A and B. These are called Medicare Advantage plans. Part D, the prescription portion of Medicare, was added in 2006.
Medicare and Obamacare
Although Medicare is separate from the Health Insurance Marketplace, Obamacare did change many things about Medicare.
It added certain preventive services without charging a co-pay or deductible. These services include procedures like mammograms and a yearly wellness visit. Another benefit the Affordable Care Act (ACA) added is discounts on brand name drugs. Now those who are in the “donut hole” or coverage gap can save 55 percent on brand name prescriptions.
Medicaid
Although Medicaid was created the same year as Medicare, it was designed as a federal- and state-funded program. Because of this, Medicaid regulations differ from state to state. Medicare, on the other hand, is run by the federal government only.
Like Medicare, Medicaid has expanded over the years to allow more people into the program. According to the Centers for Medicare and Medicaid Services, Medicaid originally only provided medical coverage to those getting cash assistance. Now, others such as low-income families and the disabled are eligible.
