How do Medicare and Medicaid differ at a high level?

• A. Medicaid is funded only at the state level.
• B. Medicare is a federal program for people 65+ or certain disabled individuals.
• C. Medicare covers long-term care.
• D. Medicare is a federal program for people 65+ or certain disabled individuals; Medicaid is a joint federal-state program for low-income individuals.

Answer: (D)

Medicare and Medicaid serve different purposes and are organized differently. Medicare is a nationwide federal program that provides health coverage mainly for people aged 65 and older or for certain younger individuals with disabilities. It’s funded and administered by the federal government, so the rules are largely the same across the country. Medicaid, by contrast, is a joint federal-state program designed to help people with low income. It is funded by both the federal government and the states and is run by state governments within federal guidelines, which means eligibility and covered services can vary from state to state. A helpful nuance is that Medicaid often covers long-term care services (like nursing home stays) in many cases, whereas Medicare does not cover most long-term custodial care. So, the big difference is: Medicare is federal and age/disability-based; Medicaid is income-based and state-administered with federal support.