Medicare is the federal health insurance program for people ages 65 and older as well as those under age 65 with certain disabilities, including end-stage renal disease (ESRD) and Lou Gehrig’s disease (ALS). It offers coverage for hospitalization (Medicare Hospital Insurance (Part A)), medical services (Medicare Medical Insurance (Part B)), as well as private insurance programs (Medicare Advantage Plans (Part C)) and prescription drugs (Medicare Prescription Drug Plans (Part D)), which are optional.
Medicaid is a joint federal-state program. It provides hospital, medical and drug coverage for poor people. Qualification is on the basis of income and financial assets. Each state has its own rules and regulations about who is eligible and who is covered. The general categories for eligibility under Medicaid are those ages 65 and older, the disabled, children under age 18, and pregnant women, all of whom must meet the income and asset test. Sometimes people are eligible for both Medicare and Medicaid; these people are called “dual eligibles.” Usually, dual eligibles are nursing home residents who are older than age 65.
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