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Medicare and Medicaid Difference Guide

Carly H. Cummings — Thu, 09 Jan 2020 17:50:31 +0000

Medicare and Medicaid Difference Guide

The Medicare and Medicaid Difference Guide helps you understanding both services, so you can make the best decisions for yourself and your loved ones.

The United States has two separate national health care systems: Medicare and Medicaid. The government created the two programs for two different kinds of people. However, they often overlap. Let’s look at both programs, including their similarities and difference. We will also look at who needs or qualifies for each program.

Let’s Start with Medicare vs Medicaid.

What is Medicare?

Medicare is the U.S. national health care program that provides seniors age 65 and older, and some disabled people, with health insurance.

The U.S. government started the program in 1966. The Centers for Medicare and Medicaid Services runs these programs. Medicare also covers people with end stage renal disease and amyotrophic lateral sclerosis.

Medicare does not cover all of the costs associated with health care. As a result, people with Medicare will also use a Medicare Supplement Insurance Plan (Medigap Plan) or a Medicare Advantage Insurance Plan to round out their care coverage.

Please read our Ultimate Guide article on “What is Medicare.“

What is Medicaid?

Medicaid is the United States National Health Care System that provides health coverage to over 64.7 Million People.

The program was created for people with low-incomes that cannot afford, or do not have access to, private healthcare insurance.

How are the programs similar?

The programs are both National Health Care Systems. In fact, they are the only two nationalized heath care systems the United States has. Many other countries around the world have much more extensive national coverage for their citizens. The U.S. has a limited program for specific age, income, and health groups, and the rest of the country relies on private health insurance.

In addition, both programs cover specific hospital services, doctor services, and other health care related services.

Medicare has four parts. First, Medicare Part A, also known as “Hospital Insurance,” helps with coverage regarding: inpatient care, home health care, nursing facilities, and hospice.

Second, there is Medicare Part B, also known as “Medical Insurance.” Part B helps with coverage related to doctor and other provider services, including: doctors visits, health care providers, outpatient, prevention services, and medical equipment. Medicare Beneficiaries pay for Part B.

Finally, Medicare has a Prescription Drug Program that is administered by private insurance carriers. Click here to lean more about What Medicare Covers and Medicare Parts A, B, C and D are.

Both Medicaid and Medicare Advantage Plans can be set up as managed care plans with networks of doctors and hospitals members have access to. If you would like to learn more about how these networks work, please read, HMO vs PPO – Which is Better?

How are the programs different?

One of the biggest differences between the two programs is who runs them. Medicare is run on a national level, by the Federal government. On the other hand, Medicaid is run by each state individually.

Of course, the biggest difference is the the different populations the programs serve:

Medicare – For Seniors over age 65, and some disabled people
Medicaid – For people with low income and few resources

Medicare and Medicaid Differences in Beneficiaries – Who Gets What Program?

The U.S. government created Medicare and Medicaid to take care of different “vulnerable” populations – the poor, the disabled, and the elderly. Let’s look at each program and population.

Who should get Medicare?

Anyone who is a citizen or qualified resident of the U.S. can enroll in Medicare when they turn 65 years old. There is a seven month window of time starting three months before turning 65, the month of your birthday, and then three months after your birthday month.

How do I Sign-up for Medicare?

First, you may be automatically signed-up if you are already receiving Social Security (SS) or Railroad Retirement (RRB).
Second, if you are not already receiving SS or RRB benefits, you must sign up for it when you turn 65 years old.
Conversely, if you are not ready for Medicare when you turn 65, you must notify the government that you want to delay your benefits. If you do delay, it must be because you have credible coverage in place. An example of this would be an employer plan.
Click here to read more about Medicare, including where to go to enroll.
From Our Article What is Medicare? A Guide to All Medicare Basics

Supplemental Medicare Insurance Options

Medicare picks up about 80% of the health care costs for its beneficiaries. For the other 20%, seniors turn to either Medicare Supplements (aka Medigap Plans) or Medicare Advantage Plans. Click here to read our article on Medicare Advantage vs. Medigap, or see the informational articles below.

Who should get Medicaid?

Medicaid is for people with limited income and resources. Medicaid is run on a state level, not on a federal level. As a result, in order to qualify for Medicaid, you will need to determine what your state defines as a qualifying income level.

How Do You Enroll in Medicaid?

Again, since Medicaid is run by State Governments, you will need to contact your state’s agency to start see if you qualify to enroll.

You can find a list of State Agencies here on the Medicaid.gov website.

Who Can Get Both Medicare and Medicaid?

People of any age who have certain qualified disabilities and people over 65, who are also below their states Medicaid income levels, can qualify for both Medicare and Medicaid.

For example, Henry is a 55 year-old disabled man who is also unemployed and living below the poverty level set by his state. Consequently, he would most likely qualify for both Medicaid (because of his income level) and Medicare (because of his qualified disability).

People that qualify for both programs are called “Dual Eligible.”

Who Can Help?

Navigating one (let alone both) of these systems can be confusing. But there is help available.

If you need help with Medicaid or need to enroll in Medicaid only, then contact your state agency directly.

If you need help enrolling in Medicare, then you can contact CMS and Social Security in the following ways:
- BY PHONE: If you need to sign-up for Medicare, you can call Social Security at 1-800-772-1213.
- ONLINE: Additionally, you can also visit CMS online at ssa.gov/benefits/medicare if you need to sign yourself up.
- RAILROAD: Finally, if you are on Railroad Retirement Benefits, you will need to notify the local Railroad Board (RRB) office before you turn 65 that you would like to sign-up for Medicare. You can sign-up 3 months before you turn 65 even if you are not planning on retiring at 65. You can read more about Railroad requirements in our article here.

Finally, if you need help finding a Medicare Supplement or Medicare Insurance Plan, or if you are dual eligible for both Medicare and Medicaid, then please contact an Insurance Agent. An Independent Medicare Insurance Agent will help you explore your options, and help you make the right choice for your unique situation.
- You can contact your author Carly Cummings here, for assistance if you live in Nebraska or Iowa.
- Or, if you live in all other 48 states, you can find an agent in your area here.

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The post Medicare and Medicaid Difference Guide appeared first on Medicare Life Health.

Medicare For All Explained

Carly H. Cummings — Wed, 25 Sep 2019 03:14:55 +0000

Medicare For All Explained

The Presidential Debates have started, and once again, the rising costs of health care is a hot topic. You will hear people (like Bernie Sanders and Elizabeth Warren among others) talking about “Medicare for All,” “Universal Medicare” and “Universal Health Insurance.” What exactly are they talking about? Let’s dive in, with Medicare for all explained.

What is Medicare?

We need to start off with some definitions. First, what is Medicare? It is the U.S. national health care system in place to cover the health care citizens over the age of 65 and those that are disabled. Hop on over to our “What is Medicare” post to learn the basics of our current system.

So, What Exactly is “Medicare for All”?

Medicare for All is the expansion of our current national Medicare system to include all citizens in the United States. According to PBS, 44 million Americans are uninsured, and 38 million more Americans are under-insured. Meaning, their insurance is not adequate enough to meet their heath care needs. Medicare for all aims to solve this problem by nationalizing health care and offering it to everyone.

Why is it a problem to have under insured or non-insured Americans?

According to PBS, some of the reasons it is problematic to have so many uninsured Americans is

People who forego preventative care cost the system more later when they get sick.
People who don’t visit the doctor when they first need to cost the system more later when their illness gets worse.
Mounting debt for consumers and non-payment of care to hospitals are just two examples of how unpaid Medical bills are a drain on our economy. The number one cause of bankruptcy in the in U.S. is medical debt.
Moreover, everyone else suffers when insurance premiums go up because of this cycle.

The Pros and Cons of “Medicare For All” Explained

Political opinions often weigh heavily on health care topics. For this discussion, try to think of health are as non-political and consider both the pros and cons of national health care.

The Positive Side

There is a lot of bloat in our current health care system. Private companies naturally try to make a profit, but the medical industries are known for inflated administrative costs and high executive pay/bonuses. A national system would divert this money away from compensation and into research and development or into lowering consumer costs.
I know we are staying apolitical, but Bernie Sanders (one of the biggest proponents for Medicare for All) does a good job of laying out our next point: we all have the right to good care. Sanders site says, We would be “joining every other major country on Earth and guaranteeing health care to all people as a right, not a privilege, through a Medicare-for-all, single-payer program.” The United States ranks far behind other countries in regards to health care, and this could be our chance to catch-up.
We could lower the cost of prescription drugs if the U.S. was the biggest payer and negotiator. Right now, the U.S. pays way more than other developed countries for certain drugs because of our privatized system. If you have not read about the sad cases related to inflated costs for insulin, that is a good example to start with.

The Negative Side

On the flip side, one argument against Medicare for All, is that national systems beneficiaries will use medical services more than they need to or should. The government has a “weaker incentive” than private companies to limit overuse since they are not profit driven.
The government is not as good at detecting and deterring fraud as private companies. This is because private companies spend more money in administrative costs to handle fraud, and the current Medicare program does not have a big enough budget for this.
Payments to providers would be less. Some of this would be countered by less admin costs. However, a lot of doctors and providers might be dissuaded from offering their services. We certainly can’t afford to loose good practitioners.

Going Forward

It doesn’t seem like a national health care system is in our near future. Even electing a pro “Medicare for All” candidate, it proponents would still have an uphill battle in congress. What is clear is that the current system is very costly and often ineffective in providing the “best” care. Tackling the problem from many different angles including prevention is an intermediary step we can at least continue with.

What are your thoughts on Medicare for all and the current state of our health care system? If you are a beneficiary of our current Medicare program, do you think it can be translated on a national scale?

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