Do the different types of health insurance plans confuse you? In our Medicare vs Medicaid guide below, we’ll discuss these differences and more.
Did you know that 29% of Americans lost their health insurance coverage in 2020? Most of the affected population were Gen Z and Millennial generations. It’s a big problem and one that needs fixing as soon as possible.
Are you planning on getting medical health insurance again soon? Before you do, learn all you can about the various healthcare insurances and coverage. Keep reading to learn what they are below and which one will suit you best.
What Is Medicare?
Medicare is a healthcare insurance program funded by the federal government. This program covers adults aged 65 and older, as well as people with disabilities. You can also apply for it if you have end-stage renal disease or permanent kidney failure.
Other than the age requirements and condition, Medicare is an individual-only program. It offers different types of coverage to the individuals who enroll in the program. The names of the different types of insurance coverage are Part A, B, C, and D.
When you apply for Medicare, you need to reach 65 years of age. There is also a limited time to enroll, often from January to March every year.
What Is Medicaid?
Medicaid is the program that the US state and federal governments join in funding. Because federal and state both work on it, Medicaid has varying coverage for every state. You may count as an eligible enrollee for Medicaid in one state and then lack qualification in the next.
The focus of Medicaid insurance is the income of the individuals or groups that use it. The ones it aims to help are the people and families with limited finances and can’t afford healthcare. Another Medicaid-specific feature is that you don’t need to wait for a specific time or to reach an age to enroll.
Medicare vs Medicaid: Where They Differ
As you can see, the key differences between Medicare and Medicaid lie in the people they aim to help.
Medicare offers insurance for those who are 65, have disabilities, or kidney failure. In contrast, Medicaid helps out individuals or groups with only a small income.
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On coverage, the Medicare program offers four different parts. For example, Medicare Part A offers hospital insurance, and Part B covers services, too. In contrast, Medicaid coverage will differ for each state.
Importance of Insurance
Before we end this Medicare vs Medicaid guide, let’s talk about why you need health insurance. When you get put in the hospital or the care of medical professionals, you’ll often face high fees. If you have health insurance, it covers a part of the total cost of your medical expenses.
Pick the Right Health Insurance for You
If you invest in a good health insurance plan, you’re also investing in your health. Before you can pick from the Medicare vs Medicaid debate, you should know what each one is for. We hope you enjoyed reading about the differences between the most popular health insurance plans in the country.
If you have questions about Medicaid or Medicare, don’t hesitate to get in touch.