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Can You Have Both Medicare and Medicaid?

by All Medicare, posted November 1, 2022

Medicare and Medicaid are two different programs that offer different types of benefits and healthcare coverage. Medicare is the federal program that provides healthcare to people ages 65 and over, and to people with certain disabilities.  Medicaid is a combined state and federal program for people who do not have enough money to pay for private insurance or Medicare. For instance, Medicaid pays some costs not covered by Medicare. The main difference between the two programs is what they cover and how they pay for health insurance.

Primary eligibility group classification for dual-eligibles

Dual-eligible individuals are categorized into two categories: full and partial duals. Full duals do not qualify for Medicaid under the QMB or QDWI classifications. They must either spend down to qualify or be in a poverty group that is above the qualifying level. Ideally, states will group full duals into separate codes, rather than lumping them together and assigning them to the 08 code.

Dual-eligible populations are often categorized by their state Medicaid and Medicare eligibility status. By understanding the differences between the two groups, policymakers can best support this population. The following table outlines a general approach to identifying dual-eligible populations.

Qualifying assets for Medicare/Medicaid

In order to qualify for Medicare/Medicaid, you must have certain assets. Your assets cannot exceed a certain amount. For example, Medicaid does not count your home, motor vehicle, or life insurance. Your assets may include your family home, but you cannot own it. You can, however, purchase a new automobile if it meets certain requirements.

Medicaid has strict rules when it comes to counting your assets, so make sure to follow the rules carefully. For example, if you have more than $2,000 in “countable” assets, you may be penalized if you transfer the money within 60 months of applying. However, if you only have a few thousand dollars in non-countable assets, it may be possible to protect your savings and avoid penalties.

Medicaid pays some of the expenses incurred under Medicare

Medicaid is a program that pays some of the costs incurred under Medicare. Medicaid is funded by two trust funds: the hospital insurance trust fund, funded through payroll taxes paid by employers and self-employed individuals, and the supplementary medical insurance trust fund, funded by premiums paid by Medicare beneficiaries. These funds are used to cover some or all of Medicare’s Part A and B benefits, as well as the administrative costs of the program.

Medicare is an important part of the health care system, helping to pay for hospital care, prescription drugs, and other acute care services. According to the Centers for Medicare and Medicaid Services (CMS), spending on Medicare in the United States reached $731 billion in 2018, up from $462 billion in 2008. These totals are not inclusive of premiums or other offsetting receipts. The costs of each part of Medicare are estimated to increase in the coming years, and their percentages have changed in recent years. As of 2018, Part A benefits accounted for 51 percent of total Medicare spending, Part B benefits accounted for 43 percent, and Part D prescription drugs covered 13 percent of the bill.

The look-back period for Medicaid eligibility

A recent Congressional Budget Office report recommends that the Federal government extend the look-back period for Medicaid eligibility from five to ten years. However, this proposal is not in any bill at this time, and may never make it into the budget. Nevertheless, it is in writing somewhere, and there are rumors about it flying around.

To obtain Medicaid benefits, applicants must not have given away their assets within five years of applying. This is called the “look-back period.” Those who transfer assets for less than fair market value are unable to receive benefits under Medicaid.

Cost of care if you’re dual-eligible

If you’re dual-eligible, you may have some questions about your insurance coverage and what to expect. If you have Medicare and Medicaid, you’ll have more choices. There are some restrictions, however. You may not be eligible for some services or you may not have enough money for care. Fortunately, there are some things you can do.

Partially dual-eligible people can get financial assistance for some of their Medicare costs. These programs often pay for part of Part A and Part B premiums. Some programs also pay for copayments and deductibles.

Filed Under: Medicare Savings Programs, Original Medicare

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