6 frequently asked questions about Medicare and Medicaid

Health insurance is a program that protects an individual against the costs associated with medical as well as surgical expenses.

How can a person purchase health insurance?

• An individual can choose between different kinds of health insurance policies.
• In America, as per the statistics of the National Health Interview Survey, 65% of the individuals in the country aged below 65 years have private health insurance.

What is Medicaid?

• It is the largest health insurance program that pays for the medical expenses of low-income citizens of our country.
• The Health Insurance Association of United States of America defines Medicaid as a government health insurance program for individuals of all ages, whose resources and income are not sufficient to pay for the required medical services.
• As per the statistics of 2017, Medicaid has covered 74 million low-income persons as well as individuals with disabilities.
• It offers other benefits like personal care services and nursing care facilities.
• The Federal Government has designed this program, and the state governments administer it. Both these bodies jointly fund Medicaid.
• Initially, it began as a program that paid for the medical care of those people who were not in a position to work, offering blanket coverage to the blind, the disabled, the aged as well as families with single parents.

Who is eligible to apply for Medicaid?

• A person is eligible to apply for Medicaid if they meet the federal income as well as standard assets norms, and also fit into the specified eligibility criteria.
• Today, Medicaid covers pregnant women and children.
• Families with unemployed parents are also eligible for Medicaid.
• However, families who have recently lost Medicaid coverage as a parent has attained employment can remain insured for one year.

What is Medicare?

• Medicare is a national health insurance program.
• The centers of Medicare and Medicaid of Federal Government of United States of America undertake the administration of this program.
• It began under the Social Security Administration in the year 1966.
• Medicare receives its funding from a combination of premiums and surtaxes from beneficiaries, payroll taxes, as well as other revenues.

Who is covered by Medicare?

• Under its health insurance coverage come those individuals who are 65 years and above, and have worked and paid into this system by contributing through payroll taxes.
• Medicare also extends its coverage to those individuals who have specific disabilities as determined by Social Security Administration.
• Further, the coverage of this health insurance program extends to individuals who have end-stage renal disease, which is a permanent kidney failure that requires either a transplant or regular dialysis.

What are the various parts of Medicare?

• Hospital insurance/Medicare Part A: This Medicare plan covers the in-patient treatment in a professional nursing home, hospice care, stay at a hospital, and other home health care treatments.
• Medical insurance/Medicare Part B: This part of Medicare covers some services of the doctor, outpatient care, prevention services as well as other medical supplies.
• Medicare Advantage Plans/Medicare Part C: This is a type of medical health plan provided by a private company contractually linked with Medicare. This health insurance plan covers the benefits provided by medical insurance and hospital insurance. Part C also includes a health maintenance organization, fee for service plan, special needs plans, preferred provider organization and also Medicare medical savings account plans.
• Prescription drug coverage/Medicare Part D: This part of Medicare provides coverage for specific Medicare costs, original Medicare, certain Medicare fee for service plans, and Medicare medical savings account plans.