Title: Medicare and Medicaid: What Are the Differences Part 1
1Medicare and Medicaid
What Are the Differences? (Part 1)
2Medicaid and Medicare are two important
healthcare programs available to citizens of the
United States
3They were created when the Social Security Act
was amended in 1965 and are managed by the
Centers for Medicare and Medicaid Services
4These programs effectively extended healthcare
coverage to almost all Americans age 65 or older
5and healthcare services to low-income children
without parental support and the relatives who
take care of them, the elderly, the blind and
individuals with disabilities
6Though these programs have similar purposes,
they are very different in terms of how the
programs are run, who can be eligible for
benefits and the limits on those benefits
7Medicare
8Medicare is essentially an insurance program
available to
9Through this program, patients pay a portion of
the costs for medical treatment through
deductibles and monthly premiums are required for
non-hospital coverage
10Medicare benefits are usually provided by private
companies that contract with Medicare to provide
those benefits
11Because Medicare is a federal program, it is
basically the same everywhere in the United States
12Medicare has several different parts that cover
specific kinds of services
13Medicare Part A
14Medicare Part A (Hospital Insurance) helps pay
for care in a hospital and skilled nursing
facility, home health care and hospice care
15Most people don't have to pay for Medicare Part A
because Medicare provides the coverage
16You have a choice of any doctor, hospital or
other healthcare provider that accepts Medicare
17You or your supplement insurance coverage would
be responsible for deductibles and coinsurance
(or copays)
18Medicare Part B
19Medicare Part B (Medical Insurance), which helps
pay for doctors, outpatient hospital care and
other preventive medical services
20Most people do pay for Medicare Part B
21With Part B, you can also choose any doctor,
hospital or other healthcare provider that
accepts Medicare
22You or your supplement insurance coverage would
be responsible for deductibles and coinsurance
(or copays)
23Medicare Part C
24Medicare Part C (Medicare Advantage Plans) are
offered by a private company that contracts with
Medicare to provide Part A and Part B benefits
25Medicare Advantage Plans include the following
26Coverage is provided by the private insurance
companies that are APPROVED BY MEDICARE
27You are required with most plans to use doctors,
hospitals and other providers who are within the
plan
28You are required to pay monthly premiums in
addition to any Part B premium that you pay,
along with deductibles and copays
29Medicare Part D
30Medicare Part D (prescription drug coverage)
adds prescription drug coverage to Medicare
Parts A and B, some Medicare Cost Plans, some
Medicare Private-Fee-for-Service Plans, and
Medicare Medical Savings Account Plans
31If you want this coverage, you should join a
Medicare Prescription Drug Plan and pay the
monthly premium
32These plans are run by Medicare-approved
companies
33Some Medicare Advantage Plans offer prescription
drug coverage
34If they do not, you can join a Medicare
Prescription Drug Plan
35What do you do about gaps in your healthcare
coverage?
36If there are any gaps in your healthcare
coverage, you can obtain what is known as a
Medicare Supplement Insurance or Medigap policy
through a private company
37However, if you have a Medicare Advantage Plan,
you cannot use a Medigap policy to pay for any
out-of-pocket costs
38In fact, if you already have a Medicare
Advantage Plan, you cannot be sold a Medigap
policy
39Who is eligible for Medicare?
40You are generally eligible for Medicare if
41If you are not 65, but you have a disability or
End-Stage Renal disease requiring dialysis or a
kidney transplant, you may also qualify
42Learn More About Medicare in Arkansas
43Deborah Sexton Law Office
www.arkansas-estateplanning.com
(479) 443-0062