Which statement accurately differentiates Medicare and Medicaid?

• A. Medicare serves only hospital care.
• B. Medicaid covers private employer plans.
• C. Medicare is funded by states.
• D. Medicare is primarily for the elderly and disabled, while Medicaid serves low-income individuals across all ages.

Answer: (D)

Medicare and Medicaid differ in who each program serves and how they’re funded, more than in the specific benefits they offer. Medicare is a federal program that primarily serves people 65 and older, plus certain younger individuals with disabilities or End-Stage Renal Disease. It is funded largely by the federal government through payroll taxes and trust funds, and it operates with uniform rules nationwide. Medicaid, by contrast, is a joint federal-state program designed for people with low incomes, including children, pregnant people, the disabled, and the elderly. It is financed with a mix of federal and state funds, and states administer their own programs within federal guidelines, which can lead to some variation from state to state.

So the statement that best differentiates the two is that Medicare is primarily for the elderly and disabled, while Medicaid serves low-income individuals across all ages. The other choices misstate Medicare’s coverage, funding, or Medicaid’s scope.