| Each time that you get a paycheck there is a small | | | | designs its own program. Medicaid covers many more |
| amount taken out for your Social security benefits. | | | | services than Medicare and there are no co-pays. |
| These payroll deductions pay for your federal | | | | Medicaid covers hospitals, doctors, drugs, x-rays and |
| Medicare health insurance benefits. When you retire | | | | long term nursing home care. |
| from the workforce at age 65, or earlier due to a | | | | The key to be eligible for Medicaid is that you must be |
| disability, your Medicare coverage begins. It also covers | | | | very poor. Your income and resources must be below |
| your children under the age of eighteen if you die | | | | a threshold set by the federal government and |
| before retirement. You will receive Medicare even if | | | | adjusted every year. You must also be able to prove |
| you are a millionaire provided you paid in enough | | | | that you are a U.S. citizen. Aliens cannot receive |
| quarters. It does not depend on your assets or income. | | | | Medicaid benefits. |
| Bill Gates will get his coverage. | | | | While Medicaid will cover long term nursing home care |
| Medicare coverage is not complete and there can be | | | | if your family member meets the Federal medical need |
| co-pays. Most retirees buy supplemental insurance for | | | | guidelines, there are certain hooks. Medicaid can assert |
| some of the services that the basic Medicare benefits | | | | a payback lien against some future earnings, |
| do not provide. Medicare covers hospital stays and | | | | inheritances, gifts, lawsuit winnings and your estate. |
| limited skilled nursing facilities under "Part A." Doctors, | | | | You will also be ineligible if you gave anything away |
| outpatient care, and medical supplies are covered | | | | during the five years before you apply. The period of |
| under "Part B." The two biggest gaps in Medicare | | | | time that you are ineligible is based on how much you |
| coverage are long term care and prescription drugs. | | | | gave away. Some transfers to spouses or disabled |
| You cannot double dip and if you collect coverage | | | | children are exempt from the penalty rules. |
| from another source, Medicare does have some | | | | Surprisingly, Congress took some care not to |
| reimbursement rights. | | | | impoverish a healthy spouse or disabled children who |
| Some days I think that Congress named our two very | | | | remain at home in the community. A home, a car and |
| different national health care programs "Medicare" and | | | | approximately $100,000 can be kept back for them |
| "Medicaid" just to confuse us. | | | | when a disabled spouse goes to a nursing home. |
| Medicaid on the other hand is a welfare program that | | | | Congress also allows some limited asset protection |
| is not funded through Social Security. It comes from | | | | planning and has sanctioned the use of "Special Needs |
| our general taxation with about half paid by each state | | | | Trusts" in a law called "OBRA 95. |
| and the balance paid for by Congress. Each state | | | | |