Notifications from Aflac

Dismiss all notifications closes this dialog
New messages from Aflac | View Notifications opens a dialog Close X dismisses the notification alert
Individuals & Families
Individuals & Families
Get a Quote

Differences Between Medicare vs. Medicaid vs. Private Insurance

Health insurance is important for everyone, but when you reach age 65, your options may change. Government programs like Medicare and Medicaid may offer some of the best benefits available, but even if you qualify for these programs, you can still opt for private insurance. Knowing the difference between each of these programs will help you make the right decision for you. Aflac offers supplemental health insurance plans to help you cover gaps in coverage, whether you have Medicare, Medicaid, or a private plan.

3 Min Read

Table of Contents

Key Takeaways

  • Medicare is a federal health insurance program for people age 65 and older, while Medicaid is a joint state and federal program for lower-income individuals.
  • Seniors can also get private insurance through an employer-sponsored plan or an individual marketplace plan.
  • Aflac offers supplemental health insurance plans that can provide additional coverage for expenses if you experience covered medical events.

What is Medicare?

Medicare is a federal health insurance program for people who are 65 or older, and some young people with qualifying disabilities or health conditions. Medicare has set standards for costs and coverage, regardless of where you live.1 It’s a common program for people who have retired and lost their employer-sponsored health insurance.

What is Medicaid?

Medicaid is a joint federal and state health insurance program that helps cover medical costs for low-income people. Each state runs its own programs, so eligibility requirements and benefits vary from state to state. Medicaid offers some benefits that Medicare doesn’t normally cover, like nursing home care.1

What’s the difference between Medicare vs. Medicaid?

Medicare and Medicaid are both government health care programs, but they have several differences:1

  • Government level: Medicare is a purely federal-run program, while Medicaid is primarily run by states (although the federal government sets minimum rules for Medicaid programs).
  • Qualification requirements: Medicare is primarily age-dependent, as you must be 65 or older unless you have a qualifying condition or disability. Medicare is income-dependent, with asset and income requirements varying between states.
  • Coverage: Medicare and Medicaid don't necessarily help cover the same expenses, so it's important to read the fine print of any plan before enrolling. For instance, Medicaid is more likely to cover nursing homes or personal care services.

In some cases, you may qualify for both Medicare and Medicaid. You are able to use both at the same time.2 Typically, when both Medicare and Medicaid work together, you’re more likely to receive better coverage and have fewer out-of-pocket costs.

What is private insurance?

Private health insurance is a plan offered by an insurance provider. You enroll in a specific plan and pay insurance premiums to keep your coverage active. Many people receive coverage through an employer-sponsored plan, but you can also find coverage through the Health Insurance Marketplace.

Aflac duck with wings out

Peace of mind doesn't have to break the bank

Don’t wait until it’s too late. Help cover yourself and your family with coverage from Aflac.

Get Started

Medicare and Medicaid vs. private health insurance

The primary difference is that Medicare and Medicaid are public, government-sponsored programs while private insurance is not. Even if you qualify for public programs, you should assess all of your health insurance options because private insurance may offer better coverage to suit your needs.

Some key differences to keep in mind:

  • Flexibility: Medicare allows you to go to any doctor that accepts the national program—and many doctors do.3 You may have more options with private health insurance, but it depends on the plan. Medicaid tends to have the least flexibility.
  • Coverage: Coverages, restrictions, and limitations vary between all three. There are many types of private health insurance plans, so you'll have to be more selective when comparing.
  • Cost: Medicare monthly premiums can cost up to $175.3 On the other hand, the average cost of private health insurance for individuals is $477 per month.3 Depending on the plan and your care, it may also still have higher out-of-pocket costs than government programs. Medicaid tends to be the most affordable, which is a key reason why around 72 million Americans are enrolled in Medicaid coverage.4

Supplemental insurance can complement your primary plan

Medicare, Medicaid, and private insurance all help you reduce your out-of-pocket costs for medical care. While Medicare and Medicaid are likely more affordable than private insurance, not everyone qualifies for them, and the coverage may be more restrictive than private insurance. Regardless of your chosen plan, some medical expenses may not be covered by primary health insurance. Aflac supplemental insurance, can work with your existing plan to help cover those costs.

We offer a range of supplemental policies, such as cancer, hospital, critical illness, and short-term disability insurance. Chat with an agent today to learn how our insurance plans can easily fit your budget and get a quote.

Get Started

Learn more about Aflac products for Individuals & Families:

Accident Insurance Cancer Insurance Life Insurance Critical Illness Insurance Final Expense Insurance
Disclaimer

Share Page
Close
Google+