After years of having private insurance, you understand how the health insurance industry works, but as you get older and qualify for Medicare, the process becomes just as confusing as it was when you bought your first policy. In fact, many people mix up or confuse the benefits offered by both Medicare and Medicaid. Below is a brief breakdown of the two policies, so you can better understand which policy you qualify for and how those benefits work.

Medicare

This insurance is available to individuals over the age of 65 and some Americans who have lived their lives with disabilities. If you’ve paid income taxes for the last 10 years, your premium costs will be lower than if you took an early retirement and didn’t have to work.

Similar to regular insurance policies, you’ll have to pay a portion of your treatment costs toward your deductible before the policy covers the rest of your treatment. However, the deductible will most likely be significantly lower than what you’re used to paying for a private insurance policy. This plan is managed by the federal government and should be the same in all 50 states. If you need to move once you qualify for a plan, you can expect your coverage to remain the same.

Medicaid

Medicaid is a health insurance specifically designed to provide quality health care to low-income families and individuals. The coverage is available to people of all ages and abilities, and qualification is solely based on your income status. If you qualify for Medicaid and need medical treatment, you don’t have to worry about extensive hospital bills or high deductible payments. All those costs are subsidized by the government, so you won’t be saddled with high levels of debt.

On the other hand, you may need to pay a small copay for some treatments, depending on the type and your income bracket. Keep in mind that Medicaid is managed by states and local governments, and the requirements may differ. If you need to move to a new state, you’ll need to resubmit your information and qualify based on the local requirements.

At the Steven Hall - Farmers Insurance agency in Mountain Grove, MO, we pride ourselves in helping residents find the best health insurance policies for their needs. Whether you’re just starting your career or you’re concerned about applying for Medicare coverage, our friendly staff will help you every step of the way. Learn more about our coverage options, and get a free quote online or call (417) 926-7900.