It is easy to confuse these two terms, and while they may share many similarities, there are also some fundamental differences between the two.

Medicare is a federal government sponsored healthcare plan that is available to all Nashville residents and United States citizens 65 years or older who have been a legal resident of the country for at least five years and have worked in the U.S. for at least 10 years.

Medicare is split into four distinct plans, with each providing different amounts and aspects of coverage.

Part A, also known as hospital insurance, pays for overnight hospitalization and most other fees that may be incurred during the course of treatment. Part A often comes into play when a patient requires surgery or must be admitted to the hospital following an accident or serious illness. Part A is provided at no extra cost to anyone who is eligible for Medicare.

Part B, also known as medical insurance, is an optional form of coverage that pays for routine outpatient treatment, such as x-rays, laboratory work, immunizations and emergency care. Part B also provides coverage for medical equipment that patients might require, including wheelchairs, oxygen tanks, and prosthetics. Patients who enroll in Part B will be required to pay a separate monthly premium to receive benefits.

Part D is also known as the prescription drug plan. It was added to Medicare in 2006 and covers a wide variety of prescription drugs. It requires a separate monthly premium and is available to anyone who is covered by Parts A or B. However, like all plans it does come with certain restrictions and will only cover drugs that have been approved by the FDA. Part D also excludes some types of drugs including barbiturates, weight loss drugs, and any drug designed for cosmetic use.

Part C is known as Medicare Advantage and is a combination of Parts A and B. It also has the flexibility to allow patients to enroll in Part D as well. Medicare Advantage has a lower monthly premium than other plans, but co-payments after receiving treatment are typically higher.

On the other side of the coin, there is Medicaid.

Medicaid is also a government sponsored healthcare program that provides inpatient and outpatient services to patients, but unlike Medicare, it is also run on the state level. Residents of Nashville and people throughout Tennessee may recognize it as TennCare.

Medicaid is issued to residents of each individual state on a needs basis. If a person meets a certain criteria of income level and overall asset value, they may be eligible to receive Medicaid. Being a recipient of Medicare does not prevent a person from receiving Medicaid benefits and vice versa, and many people are eligible to receive both.

Unlike Medicare, Medicaid is very broad in its coverage of health-related expenses. Doctor and hospital visits are mostly paid for by Medicaid, leaving the patient responsible for a small co-payment. Many prescription drugs are also included in Medicaid’s coverage as well.

Medicare and Medicaid may sound extremely similar on the surface, but there are actually a number of key differences between them that all Memphis residents should know.

Medicare is available to any person 65 years of age or older who has been a United States resident for at least five years. It is also available to individuals with certain disabilities who are under the age of 65.

Medicare is divided into four different parts, each providing a different area of coverage and with a different cost associated.

The first part, or Part A, is called hospital insurance. It pays for overnight hospitalization and the subsequent fees associated with such treatment. It can also cover stays in nursing facilities for up to 100 days, with the first 20 days being paid in full by Medicare while the remaining 80 require a patient co-payment. Part A is provided with no cost to any Memphis or U.S. citizen 65 and older who has worked for 40 or more quarters in his or her lifetime.

The second part of Medicare, also known as Part B, is medical insurance. This optional coverage fills in the gaps left by Part A, and usually pays for work done during routine outpatient visits, including x-rays, blood work, vaccinations, ambulance transportation, etc. It also covers necessary medical equipment related expenses a patient may require, such as prosthetics, canes, and wheelchairs.

The third part, Part D, covers a patient’s prescription drug costs. It is a recent addition to Medicare and is available to anyone who is currently covered by Part A or B. It does not cover any drugs that have not been approved by the FDA, as well as most fertility drugs, weight loss drugs, certain pain medications and drugs designed for cosmetic purposes.

Finally, there is Part C – a customizable and more extensive plan also known as Medicare Advantage. With Medicare Advantage, patients are automatically enrolled in Parts A and B and also have the option to enroll in Part D. It is generally less expensive than the other plans due to a lower monthly premium, but individual co-payments after receiving treatment can be higher than with standard Medicare.

On the flip side of this, there is Medicaid.

Much like Medicare, Medicaid is a government-controlled health insurance program that provides support for patients requiring inpatient or outpatient services. Unlike Medicare, however, Medicaid is funded on the state level. For residents of Memphis and throughout the state of Tennessee, it is commonly known as TennCare.

Instead of eligibility for Medicaid being based strictly on age or disability status like Medicare, it is also dependent on a person’s income, overall assets, and citizenship. States are required to provide Medicaid services to low income individuals below the poverty line, as well as any person receiving federal income assistance. Some people can actually receive benefits from both Medicare and Medicaid at the same time.