What is Medicaid

What is Medicaid?

Many people confuse Medicaid and Medicare. But they’re not the same.

Medicaid & Medicare

Medicaid Overview & How It Differs from Medicare

Medicaid is a joint federal–state health insurance program that provides coverage for people with low income and limited resources. Unlike Medicare (age/disability-based), Medicaid eligibility is based on financial need and rules vary by state.

Key Features of Medicaid

Comprehensive Coverage

Hospital, doctor visits, preventive services, labs, and in many states, long-term care (nursing home or in-home support).

Low or No Cost

Most enrollees pay little to nothing for covered services; some states charge small copays or premiums.

State-Administered

Funded by federal and state governments but run by states, so eligibility, benefits, and costs vary by where you live.

Medicare vs. Medicaid: Key Differences

Quick Tip: Think of Medicare as age/disability-based insurance and Medicaid as income-based insurance. Some people qualify for both (“dual eligible”).
Comparison of Medicare and Medicaid by eligibility, costs, coverage, and administration
Feature Medicare Medicaid
Who Qualifies Primarily people 65+, and younger individuals with certain disabilities or conditions (ESRD, ALS). People of all ages with low income and limited resources (rules vary by state).
Type of Program Federal program – same nationwide. Joint federal & state – varies by state.
Costs Premiums, deductibles, coinsurance (e.g., Part B premium, Part D drug costs). Usually low or no cost; some states charge small copays/premiums.
What It Covers Hospital (Part A), medical (Part B), prescriptions (Part D), or Medicare Advantage (Part C). Comprehensive care, often including hospital, doctor, preventive, prescriptions, and long-term care.
Long-Term Care Limited (short-term skilled nursing/rehab after a hospital stay). Primary payer of long-term care (nursing homes, in-home assistance).
Administration Run by the federal government. Run by states within federal guidelines.
Can You Have Both? Yes — “dual eligible” beneficiaries. Medicaid may help pay Medicare premiums and out-of-pocket costs. Yes — coordinates with Medicare to cover costs/services Medicare doesn’t.