Medicare vs. Medicaid

Different Health Insurance Programs; Some Qualify for Both

Medicare and Medicaid are often confused and largely unrelated. Many do not know the difference between them! Both programs are a way to pay for medical bills, but they serve different groups of people.

However, some people do qualify for both, known as dual-eligible beneficiaries.

What Is Medicare?

Medicare is a federally administered system of health insurance. It covers people who are 65 years of age and over, certain people with disabilities, and those with End-Stage Renal Disease.

Medicare is paid for through two trust fund accounts—which is primarily funded through payroll taxes and other sources, such as income taxes paid on Social Security benefits.

What Is Medicaid?

Medicaid is a jointly administered federal-state health insurance program. In other words, it is jointly funded by the federal government and states.

Medicaid covers low-income people, children, and the aged, blind, and/or disabled folks who are eligible to get federally assisted income maintenance payments. With Medicaid, your age doesn’t determine your eligibility.

Do I Need Medicare or Medicaid?

This depends on your age, health, and finances.

If you are over age 65, you probably need Medicare rather than Medicaid. Though, if you have a low income, you might qualify for both. This can make health care services more affordable than ever. This is especially true for individuals who join a Dual Special Needs Plan that offers unique benefits for people who qualify for both programs. 

Medicare vs. Medicaid: Costs to Expect

Medicare is usually more expensive than Medicaid because there will always be premiums, deductibles, and coinsurance with Medicare. Medicaid, on the other hand, passes little to no cost on to the plan members.

Find Out What You Qualify for

Many people do not know they are eligible for certain programs that make health care coverage more affordable. At Overton Agency, we offer a free consultation to discuss your needs. Then, we’ll help you enroll in the program that fits—so you can protect your health and wallet. Call today!