Medicare and Medicaid are two programs started in 1965. These are federally funded programs that
offer medical benefits to citizens.
While their names are almost identical, the programs are vastly
different in eligibility, benefits, and cost.
This article will take the two programs and break them down into easy to
understand terms.
Medicare is a federally funded program for the elderly and
disabled. You are eligible regardless of
income or assets. Certain disabilities
are covered, while others are not.
Medicare has four parts, A, B, C, and D.
Medicare part A is for hospitalization coverage, Medicare part B is for
outpatient coverage, Medicare part C is a supplemental insurance which is
purchased by the user, and Medicare part D is for prescription drugs. Anything that Medicare doesn’t cover may be
covered by purchasing a private insurance policy known as Medigap. The monthly fee for Medicare varies on which
parts you purchase. Medicare part A is
free, as you’ve paid into it with taxes throughout your life. If you are self-employed, however, you may
have to pay for part A. Part B pricing
is on a sliding scale. The average subscriber
paid 99.90 in 2012. However, if you have
a higher income, your price will increase.
Medicare Part C is run by private companies, so your price will
vary. Medicare part D varies by region,
but most will pay a $38 fee monthly, plus a yearly deductible of $320,
depending on your region. You will also
have to pay co-pays for your prescriptions.
All of the premiums may be deducted from your social security check.
Medicaid is a jointly funded program by the federal and
state governments. This program offers
health benefits to low income individuals and families, along with offering
benefits to individuals with certain disabilities. Each state has different eligibility
requirements, as the Medicaid program is administered on the state level. Most states, however, offer coverage to adults
with children at most income levels. In
2014, Medicaid will enroll any individual under 65 with an income of up to
$15,000. Medicaid is often used for
long-term care, or other services not covered by Medicare or private insurance
policies.
Individuals with disabilities are eligible in every
state. In some states you are enrolled
automatically if you receive Social Security Income (SSI). Other states may offer enrollment based on
your income. Some states offer
“Buy-ins”, which allow people with disabilities who exceed the enrollment
income cap to enroll in Medicaid. Children with disabilities can qualify for
Medicaid either under these disability-related rules, or based on household
income.
Medicaid is designed to be affordable, so the costs are
minimal, and vary by state. If you have
questions, contact your local Medicaid office by finding local contact numbers
at Medicaid.gov.
Medicare and Medicaid are both wonderful systems to provide
for those in need of medical assistance in our society. Hopefully these systems will continue to serve
us for generations to come.
Megan Wilson
is a stay at home mom, blogger, and freelance writer. She is also passionate about social
initiatives like Homeless Shelter Software.
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