What is the difference between Medicare and Medicaid?

Medicare is health coverage for older individuals. Most people qualify for Medicare when they turn 65. Medicare Part A covers hospital stays, nursing facility stays, and hospital procedures. Medicare Part B is medical insurance that pays for doctor visits, labs, medical equipment used in your home, and some types of therapies. Medicare Part D pays certain costs related to prescriptions.

Medicaid is health coverage for individuals who have low income and few assets. Medicaid is funded by the federal government but is administered by the states. Accordingly, the administration of Medicaid varies from state to state. Medicaid covers inpatient and outpatient treatment, prescriptions, and the cost of vision and dental care for children. Other services may be covered, depending on the state. To qualify for Medicaid, an applicant must meet certain income-based requirements. Individuals with certain disabilities or medical conditions, including pregnancy, may qualify for Medicaid without meeting income or asset requirements. States have the ability, with limitations, to recover funds paid to a Medicaid beneficiary after he or she passes away. Accordingly, a state may try to recover Medicare funds paid for a Medicaid beneficiary's long-term care, such as nursing home care.

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