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 4. What’s the difference between Medicare and Medicaid?

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WHAT’S THE DIFFERENCE BETWEEN MEDICARE AND MEDICAID?


MEDICARE

Medicare is federal health insurance for people 65 or older, and some people
under 65 with certain disabilities or conditions. A federal agency called the
Centers for Medicare & Medicaid Services runs Medicare. Because it’s a federal
program, Medicare has set standards for costs and coverage. This means a
person’s Medicare coverage will be the same no matter what state they live in.

Medicare-related bills are paid from two trust funds held by the U.S. Treasury.
Different sources (including payroll taxes and funds that Congress authorizes)
fund the trust funds. People with Medicare pay part of the costs through things
like monthly premiums for medical and drug coverage, deductibles and
coinsurance.

For more information, visit Medicare.gov.


MEDICAID

Medicaid is a joint federal and state program that helps cover medical costs for
some people with limited income and resources. The federal government has
general rules that all state Medicaid programs must follow, but each state runs
its own program. This means eligibility requirements and benefits can vary from
state to state.

Medicaid offers benefits that Medicare doesn’t normally cover, like nursing home
care and personal care services. People with Medicaid usually don’t pay anything
for covered medical expenses but may owe a small co-payment for some items or
services. Find out if you qualify for your state's Medicaid program.

For more information, visit Medicaid.gov.

Posted in: Medicare and Medicaid


RELATED QUESTIONS

What is the Medicaid program?
Who’s eligible for Medicaid?
Who’s eligible for Medicare?
How do I enroll in Medicare?
What are the Medicare premiums and coinsurance rates?


SEARCH HHS FAQS BY QUESTIONS OR KEYWORDS:

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Content created by Digital Communications Division (DCD)
Content last reviewed December 8, 2022

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