What is the difference between Medicare and Medicaid?

Attorney Tom Olsen: What's the difference between Medicare and Medicaid? Those two names sound so familiar, but people are generally confused about it, but let's start with a simple one. Medicare is what everybody gets once they reach the age of 65, you roll in Medicare. I'm 65, I'm in Medicare. No, it's not free. I pay a monthly premium for it. When people go on Medicaid, they might be younger than the age of 65, but still be qualified for Medicare because they're on Medicaid.

Attorney Robert Hidock: Yes, because typically then if you're under the age of 65, you would have to be disabled. Then you would qualify for Medicare and/or a blend of Medicaid. Medicare and Medicaid were formed out of the same constitutional act. Medicare is health insurance to anyone over 65 that you pay for. Medicaid, you don't pay for it. It's a means test. You have to qualify for it.

Attorney Tom Olsen: If you qualify, meaning that you basically don't have any assets available to you to pay for it, you qualify for Medicaid. Once you're on Medicaid, you're automatically on Medicare.

Attorney Robert Hidock: Absolutely. Medicaid will actually pay your Medicare premium for you. Medicaid does the one thing that Medicare doesn't do. Medicaid pays for long term-care in a facility.

Attorney Tom Olsen: People, again, they might apply for disability. They've had some kind of work injury and that disability might be approved. They might get a monthly check from the government because they're unable to work, but it also qualifies them for Medicare.

Attorney Robert Hidock: Yes, it does.

Attorney Tom Olsen: That in and of itself is a big deal, especially if you've got some expensive medications every month.

Attorney Robert Hidock: Absolutely.

Attorney Tom Olsen: Robert, generally, when we're talking about Medicaid, we're talking about helping people to protect their life savings from nursing homes and how to qualify for Medicaid to pay for your nursing home.

Attorney Robert Hidock: Correct.

Attorney Tom Olsen: All right. Robert, generally, to get qualified for Medicaid, what does it require?

Attorney Robert Hidock: It's a means test. There's always an income test, which means if your gross income individually is over $2,382, if it's under that, you automatically qualify for Medicaid for income standard. If it's over that, you don't qualify. We have a Medicaid Compliant tool that we use here at the Olsen Law Group called a Qualified Income Trust that would allow them to qualify for Medicaid. Income is a whole different ballgame. If you're married, you're allowed to have $132,380 in accountable assets and still have your loved one qualify for Medicaid, but if you're single, you're only allowed to have $2,000 in accountable assets.

Attorney Tom Olsen: Generally, what we're helping people do is to help them get qualified so that the Medicaid would pay for their nursing home.

Attorney Robert Hidock: Absolutely.