What is the Difference Between Medicare and Medicaid?
I find in my practice that there is a lot of confusion between Medicare and Medicaid. Many of my clients think once they hit 65 and qualify for Medicare, it will cover all of their future health needs, including a nursing home. Unfortunately, that is not true, and it can come as a big surprise down the road if they need coverage for a nursing home and DID NOT plan ahead . In this article, I explain the differences between these two programs and why it is imperative you understand them before you need to apply. What are the program benefits? Medicare is a program administered by the federal government to provide health care to certain populations. Original Medicare is divided into Parts A and B. Medicare Part A covers hospital care and a limited period of nursing home care, home health services, and hospice care. Medicare Part A will only cover nursing home care if: 1. There was first a qualifying hospital stay of three days of inpatient care; and 2. Nursing home care was needed relating to the hospital stay; and 3. The patient entered the nursing home within a short time of the hospital stay (usually within 30 days). Thereafter, only the first 20 days of nursing home care are paid for by Medicare Part A. Days 21 through 100 of care require a partial payment by the patient. Any care after 100 days is not paid at all by Medicare Part A. Medicare Part B covers traditional health care expenses, such as visits to a doctor, blood tests, and X-rays. In most cases, a referral is not needed to see a specialist. Original Medicare does not provide prescription drug coverage; however, you can enroll in Medicare Part D through a private insurance company with paid premiums. Medicaid is also a program intended to provide medical benefits to certain populations. It is a joint federal-state program. While states receive federal funding and must follow specific federal rules, each state administers its own Medicaid program. Medicaid covers all types of medical care, including long-term care, such as a nursing home. However, eligibility criteria are more stringent when trying to qualify for long-term care. How is eligibility established? Eligibility for Medicare is simple — if you are over age 65 and have paid Medicare tax through your employment for at least 10 years, you qualify. You can get Medicare Part A at age 65 without paying any premiums if:
• You receive Railroad Retirement Board benefits; or • You are eligible to receive Railroad Retirement Board benefits or Social Security benefits but have not yet filed for them; or • You or your spouse had Medicare-covered government employment. If you or your spouse don’t qualify for Medicare Part A because neither of you paid Medicare tax through your employment, you may still be able to obtain Medicare Part A via paid premiums. Eligibility for Medicare Part B is the same as for Part A but requires a paid premium. Some folks qualify for Medicare benefits even though they are under age 65, including younger people with disabilities and those with end-stage renal disease. Eligibility for Medicaid is needs-based, meaning income restrictions for programs cover pregnant women, children, the disabled, and the elderly. If your income is under the amount specified for your state, then you likely qualify if you are in one of those groups. If long-term care is needed, however, there are also asset restrictions. An applicant cannot have over a certain amount of assets and still qualify for nursing home care benefits. However, applicants can retain an elder law attorney to do legal planning to protect assets while still getting qualified for benefits. This way, money and property are preserved for their family and won’t have to be spent on care. Each state has its own rules. Therefore, it is important to consult with a Florida Elder Law attorney to discuss how the Medicaid rules are applied to your assets. Florida does provide some unique options to protect assets but only if proper planning is employed. In addition to income and asset rules regarding nursing home Medicaid benefits eligibility, there is a look-back period. Suppose you had transferred assets during the 60 months before the Medicaid application was submitted. In that case, you will likely receive a penalty where you are not eligible for benefits for a period of time. Again, an experienced elder law attorney can best help you navigate the application process to best manage any prior transfers for your benefit. Medicare and Medicaid are two very different programs; each provides certain benefits and has certain criteria for enrollment. Between the two, however, only Medicaid will cover long-term care expenses for more than 100 days. Getting long-term care Medicaid can be a tedious process, but legal strategies can be employed that will help you. –Mark Martella, Esq.
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