Medicare

What Is Medicare? 

Medicare is a federally funded health coverage program for individuals who are 65+ and for individuals under 65 with a qualified condition. Traditionally, Medicare pays part of the cost, and the covered individual pays their share for hospital (Part A) and medical coverage (Part B) with the option to add on coverage for medications (Part D). Bulking all of these together under a Medicare Advantage plan (Part C) can also partially support hearing, dental, and vision coverage.

How Does Medicare Work?

Individuals who qualify for Medicare will pay a portion of their health care coverage through premiums, deductibles, and coinsurance. The federal government, through the Centers for Medicare and Medicaid Services (CMS), will often pay the larger portion of healthcare costs for qualified appointments, tests, and medical supplies.

What Is the Difference Between Medicare and Medicaid?

While both government programs support health care coverage for qualified individuals, Medicare is a federal program while Medicaid is a state program with federal financial support. Additionally, Medicare eligibility is based on age (65+) or health condition (for those under 65). Since Medicaid is a state program, eligibility thresholds vary depending on where the individual lives, but the criteria is generally based on income, assets, and need. Individuals may qualify for both programs to offset their medical costs.