Medicare vs. Medicaid | Mnemonic for USMLE

Medicare and Medicaid are two different healthcare programs with different functions and beneficiaries.

Medicare is a purely federal program, without involvement by the state. People eligible for coverage include the elderly over age 65, patients with end-stage-renal-disease (ESRD), younger patients with disabilities, and patients with ALS or Lou-Gehrig’s Disease. Medicare also has four parts, termed A, B, C, and D. Part A covers inpatient/hospital care, Part B covers outpatient/medical care, Part C is a combination of Parts A and B that is offered by private companies, and part D covers prescription drugs.

In contrast, Medicaid is jointly operated by state and federal governments. It helps with medical costs for people with limited finances, especially poorer families with children.

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