What Does Medicare vs. Medicaid Actually Cover for Seniors?
Medicare and Medicaid are the two main government programs that help seniors pay for healthcare—but they work very differently. Medicare is funded through payroll deductions when your mom or dad worked, along with other government programs. Medicaid is funded by state and federal programs, but is income and asset based.
Learn more about how each of the programs work, what’s good about each, and what’s not so good.
Medicare
What it is:
Health insurance for people 65+
What it covers:
Hospital stays
Doctor visits
Short-term rehab
Some home health
What it does NOT cover:
Assisted living
Memory care
Long-term daily help
Medicare helps you recover, not live long-term
Medicaid
What it is:
Needs-based support (income + assets)
What it covers:
Long-term nursing home care
Daily assistance
Some in-home care, but very limited
Limitations:
Must qualify financially
Limited assisted living support
Medicaid rarely helps with long-term care and, often, these communities are in disrepair.
Medicare helps with doctor visits and hospital care.
It’s funded through taxes people pay during their working years, along with government support.
Medicaid can help with long-term care—but only if you qualify.
It’s funded by both federal and state programs and is based on income and assets.