Medicare
Medicare is a federal health program for US citizens aged 65 or older to help cover medical expenses. The program is also open to individuals under 65 who have certain health conditions or disabilities.
There are four parts associated with Medicare, which includes:
Part A
Part A covers inpatient care such as skilled nursing facility care, hospice care, some home healthcare services, and hospital insurance. If you have worked and paid up to 40 quarters (ten years) in taxes, you qualify for premium-free Part A.
Part B
Medicare Part B covers outpatient care, doctor visits, medical supplies, and preventive services. When Medicare Part A and B are combined, they create Original Medicare.
Part C
Medicare Part C is known as Medicare Advantage and is offered by private insurance companies. These plans provide the same benefits offered by Original Medicare, in addition to extra benefits such as prescription drug, dental, hearing, and vision coverage.
Part D
Medicare Part D is a standalone prescription drug plan. Each Part D plan has what is known as a formulary, which provides the plan members with a list of the prescription drugs that are covered. Each formulary will vary among plans.
Medicaid
Medicaid is a combined program by the state and federal government to help low-income households cover their healthcare expenses such as hospitalizations, treatments, and routine medical care. This program is open to low-income adults, children, and people with disabilities.
Unlike Medicare, Medicaid eligibility is primarily based on income. People with an income within the federal poverty level can enroll in the program. The benefits covered by Medicaid vary by state but usually include inpatient and outpatient services, dental services, health screenings, etc. Most people with Medicaid pay very little for Medicaid benefits, such as a low copayment. In some cases, it is possible to qualify for both Medicare and Medicaid. People in this category are called dual-eligible.