As you approach retirement age or face a health challenge, you may find yourself in need of health insurance coverage. Two popular healthcare programs offered by the United States government are Medicare and Medicaid. These programs can help alleviate the high costs of healthcare, but which one is right for you? Read on to find out.
Medicare and Medicaid are separate programs with different eligibility requirements, but they share the same goal of providing healthcare coverage to individuals who cannot afford private insurance or have special needs.
Medicare is a federal health insurance program designed for people aged 65 or older, people under 65 with certain disabilities, and people of any age with End-Stage Renal Disease (ESRD) or Lou Gehrig’s disease. Medicare provides coverage in several parts: Part A covers hospital stays, Part B covers doctor visits, diagnostic tests and preventive services, Part C provides Medicare Advantage, Part D covers prescription drugs.
Medicaid, on the other hand, is a joint federal and state program designed for low-income individuals and families. States have the option to expand Medicaid up to 138% of the federal poverty level (FPL). Medicaid provides coverage for a wide range of services, including hospital stays, doctor visits, laboratory tests, and long-term care.
Medicaid is the better choice for individuals who do not qualify for Medicare but are struggling to pay for healthcare costs. To qualify for Medicaid, you must meet certain income and asset requirements. Those who do not qualify for Medicaid may be eligible for a state-run health insurance exchange under the Affordable Care Act (ACA).
If you are 65 or older, Medicare is the best choice for you. It is important to note, however, that Medicare does not cover all healthcare costs. Medicare beneficiaries are usually responsible for paying deductibles, co-payments, and coinsurance.
It is also common for individuals to have both Medicare and Medicaid coverage. This is known as dual eligibility. Being eligible for both programs allows beneficiaries to have comprehensive healthcare coverage with fewer out-of-pocket costs.
In conclusion, the healthcare program that is right for you will depend on your age, income, and health needs. Don’t hesitate to seek advice from a healthcare professional, social worker or your state’s Medicaid office to help you explore your options and apply for coverage.