What is the difference between Medicare and Medicaid?

Medicare is a federal program covering people 65 and older, along with younger people with certain disabilities and those with end-stage kidney disease. Eligibility is based primarily on age and work history rather than income, it is administered nationally so the rules are largely consistent across states, and it involves premiums, deductibles, and cost sharing. It is structured in parts: Part A for hospital coverage, Part B for outpatient and physician services, Part C for privately administered Medicare Advantage plans, and Part D for prescription drugs.

Medicaid is a joint federal-state program covering low-income individuals and families, with eligibility based on income and, for some categories, on disability, pregnancy, or age. Because states administer it within federal rules and can set many parameters, eligibility thresholds and covered services differ meaningfully depending on where you live, including whether a state expanded eligibility under the Affordable Care Act. Medicaid typically has little or no premium and minimal cost sharing, and it is the largest payer for long-term care in the United States, including nursing home care, which surprises people who assume Medicare covers that. Some people qualify for both programs simultaneously and are called dual eligibles. The names being nearly identical is a genuine source of confusion, and the practical starting point for anyone navigating either is the official Medicare site or the state Medicaid agency rather than a search engine.