Medicare and Medicaid are both government programs designed to assist people with medical bills. These programs are key to your retirement plan no matter your financial situation; however there are key differences between these programs that you should know about.
Medicare is an insurance program paid for by funds paid into by those who are covered. It is a run by the federal government and thus, has the same rules and regulations no matter where you live in the U.S. Since Medicare is a type of insurance, co-pays may be required for certain services. Like private insurance companies, There are different types:
● Part A – Covers hospital care.
● Part B – Covers medical insurance.
● Part D – Covers prescription drugs.
Who is eligible?
Medicare is available to anyone over the age of 65 who have paid into the system. If you are a W-2 employee, Medicare taxes are automatically taken out of your paycheck. Those with certain diseases or disabilities may qualify as well, even if they are under 65.
Medicaid is an assistance program, so it doesn’t behave as an insurance program like Medicare. It is used to pay medical bills of those with low-income. Though it depends on the state, recipients generally do not pay any part and it is funded entirely from federal, state and local taxes. It is run by both federal and state governments, so rules and regulations vary. The Affordable Care Act recently expanded the Medicaid program, but this is optional for each state.
Who is eligible?
Since Medicaid is both a federal and state program, requirements vary. Eligibility typically depends on income level and family size, but not always. In fact, there are many myths when it comes to Medicaid Planning, so if you are unsure, please speak to an estate planning attorney. With proper planning, you do not need to be impoverished to qualify for Medicaid. If a parent does not qualify, children may be eligible for coverage under the Childrens Health Insurance Plan.
Both Medicare and Medicaid are designed to assist you with medical coverage in your old age. At Wilson Law, P.A., we are committed to helping your plan for your future. If you need assistance with your retirement plans, please contact us for a FREE consultation.