Medicaid and Medicare are both health insurance programs of the federal government, however, Medicaid is run by the state, using federal and state money. Medicare is typically available for any US citizen or permanent resident over 65, as well as some people with disabilities who are under 65. Medicaid is an assistance program for individuals and families who meet the income and resource eligibility requirements.
Medicare coverage is made up of several parts. The Parts of Medicare are:
Medicare Part A: Pays for inpatient hospital services
Medicare Part B: Pays for outpatient care, like doctor visits, lab and x-ray services, and durable medical equipment
Medicare Part C: Is a private alternative to Original Medicare, and covers all Part A and Part B services, typically also including prescription drug coverage, dental care, vision care, and hearing care, for a lower monthly premium. Part C plans are also known as Medicare Advantage Plans
Medicare Part D: Assists with prescription drug coverage
Like private insurance plans, Medicare has deductibles, coinsurance, and copayments for certain services. Medicare often covers part-time home health care and hospital stays, but does not cover nursing home care beyond the first 100 days.
Each state Medicaid program will differ in its benefits, but Medicaid coverage usually offers benefits that Medicare does not, such as care in a skilled nursing facility and personal care services. Medicaid eligibility is limited to those with limited income and limited resources. Users of Medicaid services usually do not have to pay anything for their care, although occasionally there will be an out-of-pocket cost for certain items or services.
When a person is eligible for both Medicare and Medicaid, this is known as dual eligibility. In these cases, Medicare pays medical costs first, with Medicaid picking up the remainder. According to Medicare.gov, approximately 12 million people are dually eligible enrollees who use both services for their health coverage.