Medicare and Medicaid are health insurance programs for US citizens. Medicare offers health coverage for people over 65, people with disabilities, and end-stage renal disease. Medicare services include hospital coverage – Medicare Part A, health insurance – Medicare Part B, and prescription drug coverage – Medicare Part D (Medicare program, n.d.). Specifically, Medicare Part A helps pay for inpatient care in hospitals, hospices, and home health services. Medicare Part A discounts are often included in payroll taxes.
Next, Medicare Part B helps cover outpatient care, therapists, physical therapists, and some home services. Most often, consumers of the service pay a monthly premium for Medicare Part B. Finally, Medicare Part D provides coverage for prescription drugs. This portion of the plan is available to anyone with Medicare after the doctor approves the treatment plan. People usually pay for Medicare Part D through monthly premiums.
At the same time, Medicaid is an insurance program that pays for the medical costs of people with limited resources and offers benefits such as nursing home care or personal care services. Medicaid rules are different for each state. Notably, some states allow for a cost-cutting process by deducting medical expenses from the consumer’s income to ensure participation in the program if the income level exceeds the participation threshold (Medicaid, n.d.). In this case, the patient is designated as medically needy. In general, Medicare is the primary source of health insurance coverage, and Medicaid can only cover services that Medicare does not cover. There are Original Medicare and Medicare Advantage Plans.
References
Medicaid (n.d.).