May 30, 2022 • Tony

Difference between Medicare and Medicaid programs

Medicare and Medicaid are both medical financial assistance programs, like health insurance, of the United States government. Since the two programs have similar names, many people get confused between the two programs, and thus often have a vague notion of the terms and benefits of the two programs.

Although both Medicare and Medicaid programs were established by the government in 1965 and funded by taxpayers’ money, the two programs are very different in terms of eligibility and benefits for beneficiaries.

The difference between Medicaid and Medicare is that Medicaid is administered by the states and is based on income. Medicare is administered by the federal government and is primarily age-based. However, there are special circumstances such as certain disabilities that may allow younger people to receive Medicare.

In a nutshell, Medicare is a program to help financially care for older adults (65 years of age). And Medicaid is a program that helps finance low-income health care. Here are the details about the two programs.


MEDICARE is health insurance for people over 65, or people under 65 who have been permanently disabled for more than 24 months.

Medicare has 5 parts: A, B, C, D and Medicare Supplement
Part A is free if you work and pay taxes for more than 40 quarters. This is the part that helps you pay for your hospital stay.

Part B you will pay a monthly fee. This section helps pay for medical expenses such as emergency, lab, doctor, nurse…

Part D you will also have to pay for and this is the part that helps you with the costs of your medications.

When you turn 65, you are required to have 3 coverages A, B and D to avoid penalties.

Because Parts A & B only covers about 80% of medical expenses, and there is no limit on the 20% patient contributions, most people with Medicare will need to enroll in an additional Part C plan. also known as Combined Medicare or Medicare Supplement to help them pay the rest of their costs.


Unlike Medicare, not everyone benefits from the Medicaid program. Each state has different requirements and regulations, but the main purpose of the Medicaid program is to help low-income people pay for medical expenses. In many states, to get Medicaid benefits, recipients must have no more than a few thousand dollars in the bank.

Although the Medicaid program was created to help the poor and low-income, poverty alone does not guarantee Medicaid.

This program has certain conditions that applicants must meet in order to be admitted. The reason is because the government wants the program to help the right people such as poor families, pregnant women, children, babysitters, people with disabilities, and the elderly. 

To learn more about life insurance, contact TMT Insurance to discuss a plan that meets your needs now and in years to come.

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