Medicare and Medicaid are often confused by people. While they are both government-run health care programs, they are very different from one another and it is important to understand those differences. Some of those differences include the following:

1 - Medicare is a health insurance program - very similar to a traditional health insurance product that is sold by private insurance carriers.

2 - Medicaid is a health care assistance program based on need for individuals that do not have the ability to pay for their own health insurance or health care.

3 - Medicare is available for anyone age 65 and over and to certain individuals with disabilities.

4 – Medicaid is a need based program that is only available to those that meet certain asset and income requirements.

5 - Medicare has 4 parts. Parts A & B are like typical health insurance and cover things like hospitalization and doctor visits. These parts of Medicare are paid for using payroll deductions. Parts C & D are for special insurances and for prescription drug coverage. These parts are paid for using additional premiums from the users themselves.

6 – Medicaid covers all health care needs including long term care or nursing home care.

7 – Medicare only covers some nursing home care. This will include up to 100 days of rehabilitative care. Most of the time this will include a minimum of 20 days in a nursing home. The determination of how long the coverage will last is made by your doctor. When your doctor determines that your health is not improving and that you are now in a maintenance or custodial care situation, then the Medicare coverage will end.

8 – As noted before, Medicaid is a need based health care assistance program. This means that ever after Medicare stops coverage, Medicaid will continue to pay for your care as long as you meet the requirements. Once an individual is approved, then Medicaid will provide coverage for any healthcare costs, including custodial care, above the patient liability.

The requirements to qualify for Medicaid, the 5 year look back, asset and income requirements, and many other issues related to Medicaid will be covered in future videos. You can also learn more on our website (www.plansthatwork.net), and download a Free Special Report on “Understanding Long Term Care Planning in Ohio.” Just go to the “Special Reports” page on our website to get you free download.