As you get older you need health insurance on your budget to protect your financial future and family.
The health care insurance system can be difficult to navigate. Many people have heard the terms Medicare and Medicaid without knowing what they mean or if they qualify.
This post breaks down the differences between Medicare and Medicaid to make the best health insurance decision for you or your loved ones.
Difference between Medicare and Medicaid
Medicare and Medicaid both provide health insurance to seniors. The difference is their eligibility requirements and differing levels of coverage:
- Medicare is a standard health insurance program for seniors divided into several parts, allowing customers to only pay for what coverage they want.
- Medicaid is a joint federal-and-state funded program that provides free health insurance to people whose household income is below the Federal Poverty Line.
Medicare Eligibility and Coverage
Medicare is health insurance for people aged 65 or older, though it is also for younger people who live with a disability. The program is divided into several parts:
- Part A (Hospital Insurance): Covers hospital stays, nursing care and home health-care services. Seniors are enrolled in Part A for free if they paid Medicare taxes while still employed.
- Part B (Supplementary Insurance): Covers doctor’s visits, lab tests, preventative care, and medical equipment. Customers pay for this coverage.
- Part C (Medicare Advantage): Private health coverage that includes Part A and B, while also providing access to HMO or PPO services.
- Part D (Extended Prescription Drug Plan): Better prescription drug coverage including vaccinations.
To learn more about what each part of Medicare covers, visit our homepage.
Medicaid Eligibility and Coverage
Medicaid is a federal-and-state-funded health insurance plan for Americans who are low income and are unable to work due to disability, pregnancy, being a full-time parent/caretaker or are elderly. This includes seniors over 65.
Every state has its own requirements for Medicaid eligibility. Some are more flexible, but the leanest plans only cover those whose household incomes fall below the Federal Poverty Level. In some states, you may be eligible for Medicaid if you earn up to twice the Federal Poverty Level and can not work.
Federal Poverty Level 2019
| Family Size | Federal Poverty Level |
| 1 | $12,140 |
| 2 | $16,460 |
| 3 | $20,780 |
| 4 | $25,100 |
| 5 | $29,420 |
| 6 | $33,470 |
| 7 | $38,070 |
| 8 | $42,380 |
Read this guide by PolicyGenius to see your home state’s requirements for Medicaid.
Combined Medicare and Medicaid
If you are covered under both Medicare and Medicaid, you are considered a dual eligible beneficiary. Medicaid will pay for some medical expenses not covered by Medicare including deductibles on hospital stays and drugs.
Medicaid will also help you pay for services not covered in Part A or Part B of Medicare such as dental, transportation to and from the doctor, glasses, physical therapy, in-home care or nursing home care.
How Do I Get The Best Medical Coverage For my Budget?
Having good health insurance is the key to having a secure future and avoid being a burden on your family. If you need intensive medical care down the line, basic Part A Medicare coverage may not be enough.
At Call4SeniorSavings, we will provide you with quotes from some of the top Medicare providers in the U.S. With our service you can find health insurance that suits your budget and needs all in one place.
For free advice and quotes on Medicare coverage, call us at 1-888-474-8350.