With over 80 million Americans enrolled in government-sponsored health plans, the nuances of Medicare and Medicaid are more crucial than ever. As Medicare’s open enrollment approaches, it’s imperative to understand the various elderly care options these programs provide, as benefit details can change annually.
Differentiating Between Medicare and Medicaid
Medicare and Medicaid are both government-sponsored healthcare programs, each serving distinct demographics and purposes.
- Medicare: Medicare primarily caters to individuals aged 65 and older or those with disabilities. It operates as an insurance program funded by individuals’ contributions over their working years and is managed by the federal government.
- Medicaid: In contrast, Medicaid is an assistance program designed for individuals in need, regardless of age, including children. Those enrolled in Medicaid may pay little or nothing for their healthcare, unlike Medicare. Medicaid is a federal-state partnership, leading to variations in programs depending on the state of residence.
Understanding Elderly Care Categories
To make informed healthcare decisions, understanding the differences between elderly care programs is vital. When people mention nursing home care, they often refer to:
- Hospice is palliative care for terminally ill patients, typically those with a life expectancy of six months or less. Both the patient and the medical provider must agree to this care plan. The patient can be cared for at home or inpatient/outpatient facilities, depending on the patient’s condition.
- Custodial Care assists patients with activities of daily living, such as dressing, grooming, eating, and mobility. Most medical care for long-term care patients is provided off-site, with medical providers usually absent from the facility.
- Skilled Nursing Facilities (SNFs) are for patients transitioning from inpatient settings, requiring medical care for acute conditions. While most patients stay short-term, some chronically ill patients may require long-term skilled nursing care.
Medicare and Nursing Homes
Medicare does not cover nursing home (custodial) care as the sole type of care required. However, it may cover some SNF care when medically necessary. Medicare coverage for SNF care depends on eligibility criteria:
- The patient must have Part A coverage.
- The care must be within the covered benefit period.
- It must follow a qualifying inpatient stay.
- The care must take place in a Medicare-certified SNF. Patients with Medicare usually share some overall costs through deductibles and coinsurance.
Medicaid and Nursing Homes
Medicaid covers custodial care in licensed Medicaid Nursing Facilities. Residents might need to cover certain costs related to personal preferences, such as private rooms or special meals.
Available Medicare Programs:
- Special Needs Plan (SNP): Tailored Medicare Advantage plans for individuals with unique healthcare needs, such as specific chronic conditions, care facility residency, or eligibility for both Medicare and Medicaid.
- Program of All-Inclusive Care for the Elderly (PACE): A joint Medicare and Medicaid program aimed at keeping seniors out of nursing homes, suitable for those eligible for nursing home care but capable of safely living in the community.
- Medigap: Private insurance plans cover expenses not included in Medicare, like coinsurance/deductibles. Some Medigap plans also cover healthcare during international travel. Medigap and Medicare Advantage plans are incompatible, requiring individuals to choose one. Generally, Medigap doesn’t cover long-term care or private-duty nursing.
Don’t Miss Medicare Open Enrollment
For those needing elderly care, examining available healthcare plans is crucial to understand nursing home, skilled nursing, and hospice coverage. Medicare open enrollment runs from October 15th to December 7th, while Medicare Advantage open enrollment extends from January 1st to March 31st. In contrast, Medicaid has no specific enrollment periods, allowing eligible individuals to sign up at any time. Need help navigating Medicare or Medicaid and nursing homes? Reach out to us today at Paths Law.