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Medicaid and Medicare Compared

How Medicaid Works: Page 2

By , Caring.com Expert
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What's the difference between Medicaid and Medicare?

Their names are similar, but Medicaid and Medicare are two completely different programs. A person can qualify for both Medicaid and Medicare.

  • Medicare is for almost everyone ages 65 or older, and people with long-term disability, regardless of their income or assets.
  • Medicaid is only for people with low income and very few assets other than a home.

Is Medicaid valuable for someone who also has Medicare?

If someone qualifies for both Medicare and Medicaid, Medicare covers most of that person's medical services. But there are a number of medical services that Medicare doesn't cover, which a state Medicaid program might.

Also, Medicare leaves many of a person's medical bills unpaid, even for services Medicare does cover. This includes Medicare premiums, deductibles, and co-payments, as well as the cost of some prescription drugs not covered by a Medicare Part D prescription drug plan.

If Medicare Part A or Part B covers a medical service but leaves some part of the cost unpaid, Medicaid will pay that extra amount for someone who's enrolled in both programs. Someone with both Medicare and Medicaid must enroll in a Medicare Part D plan in order to get their prescription drugs covered, but Medicaid may cover some drugs not included in Medicare Part D plans.