As we approach October you will no doubt hear the chatter and marketing onslaught discussing Medicare insurance enrollment. We often find many do not understand the difference between Medicare and Medicaid and therefore become paralyzed by the repetition of such terms. Before you begin considering your options for government funded health insurance, we thought it prudent to discuss those differences.

What is Medicaid?

Medicaid is a jointly funded health insurance plan, financed by both the federal and state governments. Although a joint venture, states are given the autonomy of how they would like to implement the program. In general, all states provide health insurance to those who experience extremely low income, are unemployed, or disabled. The qualifying details of said income or disabilities are left up to the state to decide. In addition, the out of pocket costs associated with receiving health care under Medicaid will also be determined by the administering state. One standardized trigger to being eligible is the qualification and receiving of Social Security Supplemental Income. The purpose of these plans are to provide health insurance coverage to those who otherwise could not afford it, are not offered it by the employer, or are not able to enter the workforce at all. Medicaid is often free to low cost and over 20% of the U.S. population currently enjoys its benefits.

What is Medicare?

Medicare is built to serve as the primary health insurance plan for the retired population. It is federally funded and administered and has standardized eligibility, costs, and care options across all states. Medicare can begin at age 65 and includes several levels of care, also known as supplemental plans. It is these supplemental care plans that trigger the marketing madness surrounding this time of year. October to December is the time of year that those locked in to certain supplemental plans have the opportunity to switch to a new one. Unlike Medicaid, Medicare and its supplement has premiums that can be affected by the health and age of the insured and can even be declined if not properly planned. It is very important if you are arriving at the age of 65 within the next year, you begin to discuss the care options you have available with a licensed professional. Proper planning will minimize the risk of high premium, out of pocket costs, and declines. Bay Life can be a guide to help navigate you through the government funded health insurance world.