So, What’s the Difference Between Medicare and Medicaid?

Over the last 10 years I’ve seen and heard Medicare and Medicaid get confused with one another repeatedly.  I get it – it’s not hard to do!  Both are also used interchangeably, but you need to know there is a difference.  Medicare andMedicaid are actually two separate U.S. Government programs designed to help different populations gain access to everyday healthcare.  Both Medicare and Medicaid are designed to help those with disabilities.  They offer prescription drug coverage and may offer outpatient and/or inpatient hospital coverage.  Below you will read what each involves using key differences. 

Medicare Key Components

Medicare is a federally funded program with Nationwide coverage consistency.  You typically hear most individuals who have this are people age 65 and older or individuals who have a disability.  Medicare can also be for individuals who have decided on an earlier retirement (before age 65) and opted to start receiving Medicare benefits.  The participants in Medicare pay deductibles and part of coverage costs.  Medicare coverage costs can automatically be deducted from your Social Security monthly payments should you select into this program. 

For more information surrounding Medicare and all the options that come with it, you can visit www.medicare.gov or call their toll-free number at 1-800-MEDICARE (1-800-633-4227)

But what about Medicaid?  Is that for me?

Think “Medic-AID”.  As in the government is coming to aid your situation.  Medicaid is a federally and state funded program with coverage that varies from State to State. This program mostly benefits pregnant women, individuals with disabilities and people with low income. Participants pay little or nothing for coverage. 

Unfortunately, with Medicaid, in order to qualify, you will have to submit various applications for your situation that will all revolve around your current financial situation.  This likely isn’t easy, so be prepared to submit bank statements or any income statements within an application.  If the Government is coming in to help your situation, then they want to know ALL the particulars surrounding their decision to approve you – especially if you’re considering applying for nursing home Medicaid benefits where they’d supplement monthly rent if you do not bring in enough income. 

You can find more information including the various applications for different types of Medicaid on the web at www.medicaid.gov or www.medicaid.alabama.gov.  You may also call them tool-free at 877-267-2323.

Medicare Scams: What to look out for

These days I’m constantly receiving fishy emails with someone trying to get me to wire money to an unknown individual or “Scam Likely” calls where I end up pushing the decline button. Unfortunately, the same scammers are looking to take advantage of folks with Medicare.  Knowing how to handle these situations is key to preventing potentially fraudulent activity.  Below are some tips to be cognizant of:

1. Medicare will never call you!

·  Be cautious of accepting phone calls from solicitors who claim they're an agent with Medicare. 

2. Scammers can fake a caller ID.

3. Scammers claiming that Medicare is issuing you a new card and that your old one is expiring or invalid – this is FALSE.

• Medicare will mail your new Medicare card should anything change.

• Note the last changes were made a few years ago when they started removing social security numbers from the cards due to fraudulent activity.

4. Your Medicare is about to be cancelled and you need to verify your identity.

• Medicare will not be cancelled.  Should anything change, you will receive mail correspondence about any changes – not phone calls.

5. Hang up!

• If anyone calls and asks for your Medicare, Social Security Number, bank or credit card information – legitimate Medicare employees already have your Medicare number on file.

6. Guard your personal information at all times.

7. Don’t talk to anyone who suggests their plan is preferred by Medicare.

8. Don’t be rushed into making a decision.

• You can always call us, and we can help guide you through the process.

9. When in doubt, don’t answer!  

Still need help?

         We, at LCS, are here to help with any questions you may have about Medicare and Medicaid benefits.  LCS also offers Medicaid planning services. Schedule a free 15-minute consult to discuss your options by calling our office at (205) 848-8400 or by email us at info@lcscaresolutions.com. 

By Margaret Holland, LCS Benefits and Legal Specialist