People mix up Medicare and Medicaid all the time — the names are almost the same, but they’re very different programs. Medicare is health insurance for people 65 and older, no matter their income. Medicaid is health coverage for people with low income — and for seniors, it does something Medicare largely doesn’t: it helps pay for long-term care.
That’s the big one. Medicare pays very little toward a long nursing-home stay or ongoing help at home. Medicaid is the main program that covers long-term care in this country — in a nursing home *and*, increasingly, through care at home. For a family facing those costs, Medicaid can be the difference between security and running out of savings.
Who qualifies? This is where I have to be honest with you: the income and asset rules vary by state, so there’s no single number I can give. In general, Medicaid is for people with low income and limited savings. But two reassurances: while you live in it, your home usually doesn’t count against you, and one car usually doesn’t count either (Source: Medicaid.gov). Many people who assume they have “too much” actually qualify.
You apply through your own state’s Medicaid agency (Medicaid.gov can point you there). And if you qualify for both Medicare and Medicaid, you’re “dual-eligible” — Medicaid then also helps pay your Medicare premiums and copays, which I’ll cover in another article.
Ada’s Bottom Line
1. Medicaid is not Medicare — it’s income-based coverage, and for seniors it’s the main program that pays for long-term care (nursing home and at home).
2. Income and asset rules vary by state, but your home (while you live in it) and usually one car don’t count against you.
3. Apply through your state’s Medicaid agency; qualifying for both Medicare and Medicaid unlocks extra help with your costs.
Because the rules are state-by-state, a personalized check is the only way to know. To see what you personally qualify for — with your own numbers and state — use GoldieCircle’s free Benefits Checker (the “Find Benefits” option in Ask Goldie). For free, one-on-one help, your local SHIP counselor is wonderful (Source: Medicare.gov).
Ada spent more than 30 years as a SHIP benefits counselor helping seniors and families understand Medicare, Medicaid, and the programs that help pay for them. Confused by a letter, a form, or a bill? Ask Ada.
💡 Have a question for Ada? Use “Questions from readers” just above — Ada answers within the hour. Comments here are for sharing with other members (but Ada reads them too).
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