Question

1. Differentiate between Medicare and Medicaid. Who is covered under each plan? Who funds each plan?

Answer 1

Ans) Medicare is a federal program that provides health coverage if you are 65+ or under 65 and have a disability, no matter your income. Medicaid is a state and federal program that provides health coverage if you have a very low income. They will work together to provide you with health coverage and lower your costs.

- Medicaid provides a broad level of health insurance coverage, including doctor visits, hospital expenses, nursing home care, home health care, and the like. Medicaid also covers long-term care costs, both in a nursing home and at-home care. Medicare does not provide this coverage.

- Medicare Part A covers hospital stays, and Part B covers doctors' services and outpatient care. Medicare Advantage plans provide both medical and drug coverage through a private insurer, and they may also provide additional coverage, such as vision and dental care.

- The Medicaid program is jointly funded by the federal government and states. The federal government pays states for a specified percentage of program expenditures, called the Federal Medical Assistance Percentage (FMAP).

- Medicare costs about $277 billion per year, roughly 13 percent of the total federal budget. Funding comes partially from payroll taxes, through provisions of the Federal Insurance Contributions Act. FICA deductions from Americans' paychecks finance Social Security and Medicare.