AN EXAMINATION OF THE DIFFERENCES BETWEEN MEDICARE AND MEDICAID

A Closer Look at the Two Government Programs That Aid Seniors called Medicare and Medicaid Their Purpose, How They Are Run, and Their Eligibility Requirements

Differences Between Medicare and Medicaid

Hartford Connecticut Estate Planning Attorney www.preserveyourestate.net

BARRY D.HOROWITZ

One of the primary concerns within the field of elder law is the matter of long-term care and the costs that go along with it. Even if you have saved a reasonable amount of money in anticipation of retirement you may not be prepared to absorb these costs on your own. With this in mind we would like to look at Medicare and Medicaid.

MEDICARE
When you earn income throughout your life you are paying taxes, and a portion of what you pay is going toward future Medicare coverage. If you have paid into the program sufficiently throughout your life you will become eligible for Medicare when you reach the age of 65. Parenthetically we would like to suggest that you stay abreast of the status of ongoing discussions among lawmakers with regard to the age of Medicare eligibility. As we all know there is a lot of hand wringing about the federal deficit. The population of the country is rapidly aging, so more and more people are reaching the age of Medicare eligibility. If the age of eligibility was to be raised money would be saved. This course of action has been suggested by some. Therefore, if you are planning ahead Medicare is available to you regardless of the extent of your wealth if you qualify for the program.

Differences Between Medicare and Medicaid

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for retirement you should certainly stay alert with regard to any changes to the Medicare eligibility age that may be implemented. Medicare is available to you regardless of the extent of your wealth if you qualify for the program. There are four different parts to Medicare: Medicare Part A, Part B, Part C, and Part D. Medicare Part A is the portion of the program that covers inpatient hospital stays. You should be aware of the fact that there are deductibles and potential co-payments. Part B is the part of the program that covers outpatient care and visits to doctors. You have to pay a monthly premium for this portion of the program, and it will usually be deducted from your Social Security direct deposit. Medicare Part C, alternately called a Medicare Advantage Plan, allows you to use your eligibility to obtain streamlined private coverage. Medicare Part D is the prescription drug portion of the program. Medicare is certainly going to be of assistance to you as a senior citizen, but it does not cover long-term care. The program will cover up to 100 days of convalescent care after surgery, but that is the extent of it.

Differences Between Medicare and Medicaid

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If you need to relocate to an assisted living community or a nursing home you must look elsewhere for financial support.

Medicaid
The Medicaid program is a need-based government-subsidized health insurance program. One of the differences between Medicare and Medicaid is that Medicaid is not specifically designed for senior citizens. People of all ages are enrolled in the Medicaid program. Another difference lies in the fact that you do not have to have paid a particular amount in taxes to qualify. Because the Medicaid program is intended to provide access to health care for people with very limited financial resources there are upper asset limits. If your assets exceed these limits you cannot qualify for Medicaid. Everything that you own does not count when Medicaid is evaluating your eligibility. Your home, up to $802,000 in equity in the state of Connecticut, is not considered to be a countable asset. It should be mentioned that there

Differences Between Medicare and Medicaid

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is no upper equity limit if your spouse is going to be remaining in the home after you enter a long-term care facility. Your primary vehicle that you use for transportation is not counted, and personal effects are not considered to be countable. Your wedding and engagement rings are not countable either. The upper asset limit for countable assets is $2000. Perhaps the most relevant difference between Medicaid and Medicare for those who are concerned about long-term care costs is the fact that Medicaid will pay for living assistance if you can qualify.

Medicaid Planning for Senior Citizens

Perhaps surprisingly, most of the long-term care that is being received by elders in the United States is paid for by Medicaid. This is in spite of the fact that most of these people were not particularly financially needy during their working careers. Medicaid planning involves taking advance steps to

Differences Between Medicare and Medicaid

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prepare yourself for Medicaid eligibility in the optimal fashion. This will oftentimes involve the divestiture of assets well in advance of applying for the program.

CONCLUSION
Medicare and Medicaid are both government health insurance programs. Medicare is exclusively for senior citizens who have paid into the program over an extended period of time. Medicaid is available to people with significant financial need. Because of the fact that Medicare won't pay for long-term care many seniors who are eligible for Medicare ultimately seek Medicaid coverage to pay for living assistance. If you retain the services of a licensed Hartford elder law attorney you can take steps to gain eligibility while keeping a maximum store of financial resources within your family.

REFERENCES
Medicare http://www.medicare.gov/ Medicaid http://www.medicaid.gov/

Differences Between Medicare and Medicaid

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About the Author

Barry D. Horowitz

Barry D. Horowitz is a founding partner in the law firm of Nirenstein, Horowitz & Associates, P.C. He received his diploma from the Loomis Chaffee School and his Bachelor of Arts from Bennington College, where he dual majored in philosophy and music. Mr. Horowitz was awarded his Juris Doctor degree with honors from the University of Connecticut School of Law. While attending law school, Mr. Horowitz received the American Jurisprudence Award in Legal Ethics and the Nathan Burkan Award. After graduation from law school, Mr. Horowitz continued his legal education at New York University School of Law where he received a Post Doctorate Law Degree in Taxation. He has also recently received a national achievement award. Mr. Horowitz is admitted to practice before all the state courts in the State of Connecticut and the United States District Court. He is a member of the Hartford County Bar Association, a charter member of the American Academy of Estate Planning Attorneys, and has recently received the American Academy Award. Mr. Horowitz is also an active member of the Connecticut Bar Association where he is a member of the Elder Law Section, the Estate Planning and Probate Section, and the Professional Ethics Committee. Mr. Horowitz practices exclusively in the area of Estate Planning where he has earned a reputation as a dynamic and entertaining speaker. He also has recently published a book entitled Guiding Those Left Behind in Connecticut. Nirenstein, Horowitz & Associates, PC Living Trust and Estate Planning Attorneys Serving the State of Connecticut with Offices in Greater Hartford, Fairfield County, CT www.PreserveYourEstate.net HARTFORD Gothic Park 43 Woodland St., Suite 520 Hartford, CT 06105 Phone: (860) 548-1000 WESTPORT 191 Post Road West Westport, CT 06880 Phone: 203-221-2617

Differences Between Medicare and Medicaid

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