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Medicaid

• Who is Eligible: Medicaid covers low-income and financially needy people, including those over 65 who are also on Medicare.
• Who Administers the Program:Medicaid is administered by the 50 states; rules differ in each state. Medicaid information is available at your local county social services, welfare, or department of human services office.
• Coverage Provided:
  • Medicaid provides comprehensive inpatient and outpatient health care coverage, including many services and costs Medicare does not cover, most notably, prescription drugs, diagnostic and preventive care, and eyeglasses. The amount of coverage, however, varies from state to state.
  • Medicaid can pay Medicare deductibles and 20% portion of charges not paid by Medicare. Medicaid can also pay the Medicare premium.
• Costs to Consumer: In some states, Medicaid charges consumers small amounts for certain services.

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Medicare

• Who is Eligible: Medicare covers almost everyone 65 or older, certain people on Social Security disability, and some people with permanent kidney failure.
• Who Administers the Program:Medicare is a federal program whose rules are the same all over the country. Medicare information is available at your Social Security office.
• Coverage Provided:
  • Medicare hospital insurance (Part A) provides basic coverage for hospital stays and posthospital nursing facility and home health care.
  • Medicare medical insurance (Part B) pays most basic doctor and laboratory costs, and some outpatient medical services, including medical equipment and supplies, home health care, and physical therapy.
  • Medicare prescription drug coverage (Part D) pays some of the costs of prescription medications.
• Costs to Consumer: You must pay a yearly deductible for both Medicare Part A and Part B, and make hefty copayments for extended hospital stays. Under Part B, you must pay the 20% of doctors' bills Medicare does not pay, and sometimes up to 15% more. Part B also charges a monthly premium. Under Part D, you must pay a monthly premium, a deductible, copayments, and all of your prescription drug costs over a certain yearly amount and up to a ceiling amount, unless you qualify for a low-income subsidy.