Choose the best statement about Medicaid and Medicare coverage:

• A. Medicare covers older adults; Medicaid covers people with low incomes.
• B. Medicare covers all uninsured children and pregnant women; Medicaid covers older adults.
• C. Medicare covers older adults; Medicaid covers people with low incomes.
• D. Medicaid covers people with low incomes; Medicare covers children and pregnant women in families that earn too much for Medicaid.

Answer: (A)

Medicare is the federal program for people who are 65 and older (and a few younger people with certain disabilities or conditions). Medicaid is a joint federal-state program that provides coverage based on income and other eligibility rules for low-income individuals and families, including children and pregnant women. Saying Medicare covers older adults and Medicaid covers people with low incomes captures the main division between the two programs. There can be overlap—some people qualify for both—but the general rule is age-based coverage for Medicare and income-based coverage for Medicaid. The other statements misstate who typically gets Medicare or Medicaid (for example, Medicare does not cover all uninsured children and pregnant women).