Medicare, an insurance social program which is administered by the government of the United States, provides medical insurance cover to people who are 65 years old and over. People who are below 65 years but have disabilities or renal ailments are also catered for by Medicare (Medicare. gov). On the other hand, Medicaid is a health program within the United States for families and eligible individuals who have low incomes or who own meager resources.
Moreover, people with disabilities and pregnant women are covered by Medicaid which deals mostly with people of young ages especially regarding dental services (Centers for Medicare & Medicaid Services, 2010). Medicare is divided into parts which include; part A which covers hospital insurance, while medical insurance is covered by part B. Conversely, prescription drugs are covered by part D. on the other hand. Medicaid has programs like the drug rebate, a program catering for social security regarding dental services, and also a program for children.
Medicare is a program funded at the national level whereas Medicaid program is partially or halfway funded by individual states (The White House). Whereas Medicare is a program of social insurance, the Medicaid program entails a social protection that is means-tested and a social welfare that is needs- based. The criterion used for one to be eligible for Medicaid includes limited financial resources or income, a criterion which is not used in the Medicare coverage.
Another difference is that Medicaid covers for a wider range of services of health care than Medicare. Medicare is a program of social security which was launched by the government of United States in the year 1965 after the bill relevant was signed by President Johnson. Accounting information and projection of costs is done by the CMS Chief actuary and then forwarded to the board of trustees of Medicare so that they can determine the financial strength of that program.
This program is financed partially from the tax imposed by the Federal Insurance Contribution Act (FICA). In December 1993, the maximum wage amount was provided and in January the following year, a removal of compensation limit was done. This development made the Medicare program to be effective and ensured that it covered all people who have reached the age of 65 years or who are older. Such cover is provided to people who are citizens or legal resident of United States for duration of at least five years.
The impacts of health care initiatives reforms in Medicare and Medicaid include the 2005 Deficit Reduction Act (DRA) which changed the regulation administering treatment for asset transfer and home nursing for residents (CCH Chicago Bureau, 2006). This initiative required one seeking Medicaid to produce documents to prove their citizenship. Moreover, the initiative has made low income people in United States to benefit from Medicare and Medicaid programs. These initiatives have also made some recipients to be under managed care.
In particular, poor parents and children are enrolled in private health plans which receive a premium from the state (Centers for Medicare & Medicaid Services, 2006). These initiatives have also enabled the people living with HIV/AIDS to receive Medicaid payments and more so the people with low incomes. Social Security Disability Insurance (SSDI) and the supplemental security income also provide monetary assistance to people living with HIV/AIDS. Since many of the patients with T-cell counts that are less or higher than 350 cannot afford costly medicines, Medicaid helps them.
These initiatives make a child to be covered by Medicaid in regard to their individual status even though their parents may not be eligible or the child lives with anybody other than their parents. References CCH Chicago Bureau. (2006). Deficit Reduction Act of 2005 Cuts Medicaid, Medicare spending. Retrieved June 4, 2010, from http://health. cch. com/news/medicare/020206a. asp Centers for Medicare & Medicaid Services (2006). Payment Provisions in the Original Medicare Program Immediately Affected By the Deficit Reduction Act.
Retrieved June 4, 2010, from http://www4. cms. gov/apps/media/press/release. asp? Counter=1779 Centers for Medicare & Medicaid Services. (2010). Overview Medicaid program – general information. Retrieved June 4, 2010, from http://www. cms. gov/MedicaidGenInfo/ Medicare. gov. Medicare Benefits. Retrieved June 4, 2010, fromhttp://www. medicare. gov/navigation/medicare-basics/medicare-benefits/medicare-benefits-overview. aspx The White House. Medicare Fact Sheet Final. Retrieved June 4, 2010, from http://www. whitehouse. gov/medicarefactsheetfinal/