How does Medicare primarily differ from Medicaid in the U.S. healthcare system?

• A. Medicare is federal for elderly/disabled; Medicaid is state-federal for low-income
• B. Medicare is funded by states; Medicaid is funded federally
• C. Medicare covers only hospital services; Medicaid covers all services
• D. Medicare is for low-income individuals; Medicaid is for retirees

Answer: (D)

The key idea is who runs and pays for the programs and who gets them. Medicare is a nationwide federal program designed mainly for people 65 and older and certain younger people with disabilities, with benefits standardized across the country and funded by the federal government. Medicaid is a joint federal-state program to help individuals and families with low income, with eligibility and many benefits determined by each state within federal guidelines and funded shared by federal and state governments. This distinction makes the description of Medicare as federal for the elderly and disabled and Medicaid as a state-federal program for low-income individuals the most accurate portrayal. The other statements mix up who is covered, how funding works, or what services are primarily involved.