Understanding the difference between Medicare and Medicaid can help you better navigate future healthcare needs. Although the names sound similar, the programs serve different purposes and cover different types of care.

Medicare

Medicare is a federal program available to most people age 65 and older and certain individuals with disabilities. It generally covers:

• Hospital and inpatient care
• Short-term skilled nursing care
• Doctor visits and outpatient services
• Preventive care and prescription drugs

Medicare does not cover long-term nursing home care.

Medicaid

Medicaid is a joint federal and state program with specific eligibility requirements. It can cover:

• Long-term nursing home care
• Home- and community-based services
• Medical and hospital services
• Prescription drugs and, in many states, vision, dental, and hearing services

Why It Matters

Long-term care needs often arise unexpectedly, and many people are surprised to learn that Medicare does not cover extended nursing home stays. Medicaid may help those who qualify, but rules vary by state. For guidance specific to your circumstances, consult your attorney.