Medicare vs Medicaid

Bev, in Virginia Beach, asks Ryan to explain the difference between Medicare and Medicaid?

What are some of the features of Medicare?

  • Everyone is eligible to enroll in Medicare at age 65.
  • Depending on weather or not you are working you could elect to stay on your employer’s health insurance plan.
  • Premium payments for Medicare could depend on your assets and income level.
  • Medicare will never expire or refuse an individual eligibility due to preexisting conditions.

What are some of the features of Medicaid?

  • Medicaid is the nation’s public health insurance program for people with low income.
  • Medicaid covers 1 in 5 Americans and serves diverse populations.
  • Medicaid covers a broad range of health and long-term care services.
  • Medicaid is jointly financed by states and the federal government.

What advice does Ryan have for people looking to create a strategy around Medicare and Medicaid when entering retirement?

  • Make sure that you work with a specialist that can guide you on the different strategies to address Medicare and Medicaid planning.
  • An estate or elder care attorney can be very helpful to navigate the rules around these programs.
  • A sound retirement plan should address both programs.

On this edition of SFP Retirement My Way Question and Answer, Ryan receives a question from Bev in Virginia Beach Virginia. Beverly asks Ryan to explain the difference between Medicare and Medicaid.

Ryan receives a lot of questions surrounding these two programs. And there are often a lot of confusion and miss information surrounding Medicare and Medicaid.

Medicare here is a program that everyone is automatically eligible for once they reach the age of 65. Now depending on whether you are working, and the quality of your employer ‘s health insurance plan, you could opt to stay on your employer’s insurance.

Ryan recommends that everyone does a thorough comparison between the coverage and cost for their employer’s health insurance plan, versus Medicare and the coverages and costs associated with it.

Premium payments for Medicare coverage can vary from person to person depending on assets and income levels. This is a big concern to people getting ready to retire and why it is so important to work with a specialist who can guide you through this process.

Medicare is available to all people at age 65 regardless of pre-existing conditions.

Medicaid on the other hand is a program that is meant for people with lower incomes or disability. To qualify for Medicaid there must be an asset level or income level that you are beneath.

Medicaid covers one in five Americans and serves a diverse population. It provides a broad range of health and long-term care coverages and services that many people need, especially in retirement.

As always, it is very important to work with a specialist or expert in this area to make sure that you are getting the best advice and making the best decisions possible in retirement.