Medicaid is a program that provides health care coverage to low-income individuals and families. Each U.S. state administers its own Medicaid program, although provision of certain benefits is mandatory.
Examples of Medicaid services that all states must provide include prenatal care, inpatient hospital services, physician services, vaccines for children and family planning services.
In addition to income, eligibility for Medicaid is based on disability status, pregnancy status, citizenship and age. Medicaid payments are sent to health care providers according to either a fee-for-service agreement or prepayment arrangements, including health maintenance organizations.
Medicare is a federal health insurance program for disabled and elderly individuals.