There is often confusion between Medicare and Medicaid. There is a huge difference between the two, yet people will call and tell me that they just qualified for Medicaid but what they really mean is that they just qualified for Medicare. They sound alike but they are very different programs.

Medicare is health insurance for people 65 or older, people under 65 with certain disabilities and people of any age with end-stage renal disease (ESRD) (permanent kidney failure requiring dialysis or a kidney transplant). It is funded by both the insured and mostly by the Federal Government. You apply for this at your local Social Security office.

Medicaid is a state governed program and Medicare is a federal governed program for certain people with very low incomes. Some people can qualify for both Medicare and Medicaid. People who qualify for both Medicare and Medicaid are called 'dual eligible'.

Medicaid is health coverage available to certain people and families who have limited income and resources. The rules for counting your income and resources (like bank accounts or other items that can be sold for cash) depend on which state you live in. Eligibility may also depend on how old you are and whether you are pregnant, whether you are blind or have other disabilities and whether you are a U.S. citizen. Certain legal immigrants may also be eligible. If a woman's labor and delivery of her child is covered by Medicaid, her baby may be covered for up to one year without needing to apply.

Even if you are not sure whether you qualify, if your income is limited, and if you or someone in your family needs health care, you should apply for Medicaid and have a qualified caseworker in your state look at your situation. People with Medicaid who are disabled or elderly may also get coverage for services such as nursing home care or home and community-based services. Depending on your state's rules, you may also be asked to pay a small part of the cost (a copayment) for some medical services. If you qualify for both Medicare and Medicaid, most of your health care costs will be covered, including prescription drug coverage.

For more info on Medicaid or to see if you qualify, call NJ Medicaid at 1-800-356-1561 or your county welfare agency.

Irene Card and Betsy Chandler are both licensed insurance professionals working at MIC Insurance Services, a health insurance services company. If you have questions relative to this column or other related topics, we invite you to call us at 973-492-2828.

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