What is the difference between Medicare and Medicaid?

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The Senate narrowly approved President Donald Trump’s large legal package on Tuesday, July 1st.

Over 900 pages of what is called “One Big Beautiful Building” cuts funding for several public safety net programs. This will in part help pay for the continued 2017 tax cuts, including immigration enforcement and large investments in military and border security.

The biggest cut was Medicaid, which pulled around $1 trillion from federal and state joint programs over the next decade, according to a June 28 estimate by the Nonpartisan Congressional Budget Office. The Senate bill could leave 101.8 million Americans uninsured by 2034, the report said.

The vote has seen a huge cut to Medicaid and a decline in funding for Medicare, a major source of conflict among lawmakers, after nearly four days of conflict among Senate Republicans. It remains a sticking point when coming back home, with some representatives already expressing concern about Medicaid cuts.

It’s something you need to know about the difference between Medicare and Medicaid as the potential of the bill could cut two programs.

What is Medicare?

Medicare is federal health insurance for people over the age of 65, but also covers some people under the age of 65 with certain disabilities or conditions.

Founded with Medicaid by President Lyndon B. Johnson on July 30, 1965, it has expanded eligibility for decades. According to the latest federal data collected in March, the program has over 68 million Americans registered with the program, with over 90% of eligible people aged 65 or older.

The original Medicare includes two parts, Part A and Part B, each related to hospital insurance and medical insurance. According to the Centers for Medicare and Medicaid Services in the US, the insurance policy is, but not all, but not all, but not all. Most people will have to pay premiums, deductions and out-of-pocket while enrolling in Medicare.

After an individual in the Medicare program meets the deduction amount, they pay the remaining costs of care and services, if applicable. Because there is no limit to out-of-pocket expenses per year, supplementary plans, also known as “Medigap Plans,” are often used to bridge coverage. Over 51% of Americans using Medicare have certain supplements, such as the Medicare advantage, and over 81% are enrolled in the Medicare Part D plan to offset the costs of prescription drugs, federal data shows.

What is Medicaid?

While Medicare is a federal program that primarily serves older people and people with disabilities, Medicaid is a nationally managed program for members of other groups in need of medical and insurance support, funded by both federal and state governments. These include low-income families, pregnant or disabled people, and Americans who need long-term care.

The US coordinates its Medicaid programs, according to the Centers for Medicare and Medicaid Services in the US, so there is a large variation in what is offered depending on where individuals live, and each state has its own eligibility criteria. Medicaid offers benefits that Medicare doesn’t normally cover, and the Department of Health and Human Services, including nursing home care and personal care services. Medicaid people usually don’t pay anything for eligible medical expenses, but there may be small co-payments for some items or services, according to the department.

Contributed by: Sarah Wire, USA Today.

Kathryn Palmer is a national trending news reporter for USA Today. You can contact her kapalmer@usatoday.com And with x @Kathrynplmr.

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