What are the differences between Medicare and Medicaid?

We’re often asked what the differences are between Medicare and Medicaid. We’ve taken a few minutes here to try and provide some of the top differences.

Medicare

Who it serves: Primarily for people 65 and older, or under 65 with certain disabilities or end-stage renal disease (ESRD).
Federal program: Administered entirely by the federal government.
Funding: Funded through federal taxes (e.g., payroll taxes), premiums, and general revenues.
Coverage types:
- Part A: Hospital insurance
- Part B: Medical insurance (doctor visits, outpatient care)
- Part C (Medicare Advantage): Alternative plans offered by private insurers
- Part D: Prescription drug coverage
Costs: Most people pay premiums, deductibles, and copays. Part A is often premium-free if you’ve paid into Social Security.

Medicaid

Who it serves: For low-income individuals and families, including children, pregnant women, elderly adults, and people with disabilities.
Joint federal and state program: Run by individual states under federal guidelines.
Funding: Jointly funded by federal and state governments.
Coverage: Covers a broader range of services than Medicare in many cases, including long-term care and home health services.
Costs: Often free or low-cost to enrollees, with minimal premiums or cost-sharing depending on income level.