Wednesday, January 13, 2021

Medicare vs. Medicaid

What's the difference? Is Medicaid the worst and Medicare the 2nd worst?

MediCARE vs. MedicAID

Pronunciation and spelling are the first major differences. They are both government health insurance administered by the federal agency known as the Centers for Medicare and Medicaid Services (CMS).

Medicare is funded by payroll and self-employment taxes. Medicaid is funded by state and federal taxes.

Medicare is based on federal laws passed by Congress. The terms of how patients get care and doctors get paid is the same in all states. Private Medicare plans have to cover at least the same illnesses, treatments and services as Original Medicare.

Medicaid is legislated at the state level so every state Medicaid program is unique. This also means the terms of patient care vary among the different state plans. Also, you can only be in one state plan at a time. No doubling-up the benefits.

Now, many people can have both Medicare and Medicaid. In the insurance industry, this is referred to as Dual Eligible. When Medicaid coordinates with Medicare, the state picks up a lot of the costs that Original Medicare doesn't cover, like the Part B premium or the deductibles. 

In a future post, I will cover Medicare deductibles. Rest assured, there are options that make them non-issues. Thank you again for reading. Please follow.


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