Medicare and Medicaid are both government-sponsored programs designed to help cover healthcare costs. While both were established by the U.S. government in 1965 and are taxpayer funded, they are actually very different programs with differing eligibility requirements and coverage. Medicare is designed to help with long-term care for the elderly, while Medicaid covers healthcare costs for the poor. Medicare is a federal program attached to Social Security. It is available to all U.S. citizens 65 years of age or older and it also covers people with certain disabilities. It is available regardless of income. Medicaid is a joint federal and state program that helps low-income individuals and families pay for the costs associated with medical and long-term custodial care. The federal government funds up to 50% of the cost of each state's Medicaid program, with more affluent states receiving less funding than less affluent states. Because of this federal/state partnership, there are actually 50 different Medicaid programs, one for each state. Unlike Medicare, which is available to everyone, Medicaid has strict eligibility requirements. Medicaid is often used to fund long-term care, which is not covered by Medicare or by most private health insurance policies. Medicaid is the nation's largest single source of long-term care funding. Medicare and Medicaid programs work together to provide medical coverage to elderly and poor people. Medicare is the primary medical coverage provider for many persons aged 65 and older and for those with a disability. Eligibility has nothing to do with income level. Meanwhile, Medicaid eligibility is designed for people with limited income, and it is often a program of last resort for those without access to other resources (Investopedia 2010).
Reference:
Investopedia (2010) What's the Difference Between Medicare And Medicaid? Retrieved on August 13, 2013 from http://www.investopedia.com/articles/pf/07/medicare-vs-medicaid.asp