Medicare Versus Medicaid What's the Difference

Medicare and Medicaid may sound alike, but they serve different purposes. Each is valuable on its own — like peanut butter and chocolate. But when they come together, they can create something even better.

Medicare: The Peanut Butter

Medicare is federal health insurance for:

• People age 65 and older

• Younger people with certain disabilities or medical conditions

It comes in parts:

• Part A (hospital coverage)

• Part B (medical coverage)

• Part D (prescription drug coverage)

• Part C (Medicare Advantage) — a private option that bundles coverage and may include extras like dental, vision, and hearing

On its own, Medicare is reliable and widely used, but it doesn’t cover every cost. That’s why many people add a Supplement or an Advantage plan.

Medicaid: The Chocolate

Medicaid is a federal and state program based on income, not age. Eligibility and benefits can vary by state, but Medicaid can help with:

• Premiums

• Deductibles

• Copays

• Coinsurance

For those with limited income, it provides an essential layer of financial protection.

Dual Eligible: Peanut Butter Meets Chocolate

Some people qualify for both Medicare and Medicaid. These “dual eligible” beneficiaries get the best of both worlds:

• Medicare provides the core health coverage

• Medicaid helps pay the costs Medicare doesn’t cover

• Special Dual Advantage Plans can add extra benefits like grocery allowances, help with utilities, or transportation assistance

That’s when the two programs come together, like a peanut butter cup — a stronger, more complete combination.

Medicare Versus Medicaid