Do You Know the Difference Between Medicare and Medicaid

June 25, 2014
Law Offices of Debbie J. Cunningham

Many people confuse medicare and medicaid.  Medicare is provided to seniors over the age of 65.  It is a federal health insurance program.  Medicaid is a needs based federal assistance program that pays for health care for individuals with few assets and low income.

Because the criteria for the two programs is different, qualifying for one does not mean you qualify for both.  The asset and income eligibility limits for medicaid are quite low but you can qualify regardless of age.  However, you need only be 65 or older for medicare and your assets are not considered.

Knowing the difference can become very important if you or your loved ones need long-term care in a skilled nursing, assisted living or memory care facility.  Medicare will pay for several months of this care and then you will be expected to pay out of pocket unless you qualify for Medicaid.

In some cases, the use of a trust can help you qualify for medicaid.  This will prevent you from depleting all of your assets on long-term care.  This is of particular interest when a surviving spouse is still healthy and needs to reserve assets for their own future maintenance.

The following two tabs change content below.

Law Offices of Debbie J. Cunningham

Debbie Cunningham is an Irving attorney providing affordable estate planning to the Dallas/ Fort-Worth areas. She understands the steps you should take to protect yourself and your loved ones. Debbie is family-focused and wants to ensure her clients are fully informed on the options that are available for their families. Debbie’s own blended family has given her valuable insights into the complexities of family dynamics.

Latest posts by Law Offices of Debbie J. Cunningham (see all)