Medicare vs. Medicaid: What's the Difference?

When it comes to health insurance options, there can be a lot of confusion. Many of us have heard of Medicare and Medicaid but do not know the details of the programs or who qualifies for coverage. Knowing the details of health insurance coverage can help to ensure that you know what options are available to you and your family.

Medicare and Medicaid are both programs initiated by the U.S. Government which help to provide health care to those who qualify. While the names are similar, these are two different programs with different initiatives serving different populations.

The Basics of Medicare

Medicare provides health insurance to elderly individuals age 65 or over and disabled individuals. Therefore the main determinants for who qualifies for Medicare are age and physical condition, not income level. Medicare includes both hospital insurance and medical insurance. Hospital stays, medical treatments, medical equipment, and some medications are either partially or fully covered under Medicare.

The Basics of Medicaid

Unlike Medicare, Medicaid is a health program that specifically targets low-income families for health care. Since Medicaid includes families and individuals with low incomes or resources, the elderly and disabled may qualify for both Medicare and Medicaid. In fact, as of 2001, approximately 6.5 million Americans qualified under both programs.

Another difference between Medicare and Medicaid is that while Medicare is completely funded at the federal level, Medicaid is a jointly funded program between the U.S. Government and the states. It is not considered an insurance program but is instead classified as a social welfare program, because the primary eligibility criterion is income level.

Contact Us

For more information on Medicare and Medicaid eligibility and advice on selecting a Texas health insurance plan that is right for you, contact Option 1 Health Insurance today.