Medicare vs. Medicaid – WHAT'S THE DIFFERENCE?

Medicare and Medicaid. Both are government programs, both relate to healthcare, both are in the news much of the time…and both begin with the letter M.

It’s easy enough then to confuse the two programs. But that’s the extent of the similarities. For the most part, each program provides benefits to a different segment of the population, though there can be overlap between the two under certain circumstances.

For the most part, Medicare is a health insurance program, but one provided by the US federal government. Throughout your life you pay into the system through payroll taxes that are split between you and your employer, and when you are eligible for benefits, you will also pay a monthly premium — a relatively small one — for participating in the medical services and prescription drug portions of the program.

If you have paid payroll taxes into the program for at least 40 quarters (10 years), you will not be required to pay premiums for the hospital portion of the plan. But if you have paid in for less, there is a sliding scale on premiums, and they can be substantial.

And just as is the case with most other health insurance plans, you will have co-payments and deductibles that you will pay for medical services.

The program is primarily for people who are 65 years old and older, but it also extends to younger people who are deemed to be disabled.

Medicaid is a healthcare assistance program. It is also a government program, but one in which funding for the plan is shared between the