Many people confuse the two federal insurance programs created by Congress in 1965. The programs have different eligibility requirements and different benefits. Many people confuse Medicare with Medicaid because the names sound alike and the programs are available to some of the same groups of people.
Medicare is available regardless of income and resources. Medicaid eligibility is available only to individuals who meet certain income and resource limits. Medicaid, being a federally mandated program, is state-run which leads to different criteria and coverage in each state. It also has many different programs, including both institutional and community programs, each having its own income and resource limits. However, a Medicare beneficiary with limited income and resources may also be eligible for Medicaid assistance.