Medicaid is not the same thing as Medicare. MedicAID differs significantly from MediCARE. Because of the similarity of the spelling many people confuse the two programs. 

Medicare, briefly, is a type of public health insurance that pays for primary care including doctor’s visits. Every senior who has paid into the Medicare system during their working years is eligible for Medicare. There are two "parts" to Medicare: Part A and Part B. The "A" part pays for hospital visits while the "B" part picks up part of your outpatient doctor visits and some other medically related services. It will, and this is one place where the confusion begins, even pay for nursing home care. The catch is it will only pay for nursing home care under some limited circumstances, and even then for no more the 100 days.

On the other hand many of us have never encountered the Medicaid program. Medicaid is a needs based program. Its eligibility requirements are based on the perceived need for assistance based upon an inquiry into the individual's financial and medical position. This is the starting point for determining eligibility for benefits. You must meet the eligibility requirements and those are broken down into two avenues of inquiry, a medical need and a financial need. 

Nursing home or senior health care living is an extension of our overall medical treatment system. Hospitals, physicians, therapists, and senior health care homes form a web of care that is designed to help maintain overall health. Medicaid pays for this long term nursing home care. It comes to Medicare's rescue by filling a gap left open by the Medicare system.

Here is a summary of the two programs: 

MEDICARE 

• Health Insurance for seniors. 
• Need to have contributed to Medicare system to be eligible (this is a mandatory deduction on U.S. paychecks). 
• Pays for primary hospital care and related medically necessary services. 
• Generally, an individual must be over 65 to be eligible. 
• May have a co-pay provision depending on the services received. 
• Federally controlled, uniform application across the country. 

MEDICAID 

• Needs based health program. 
• Pays for long term care. 
• Individual must meet income and asset test to be eligible. 
• Individual must be over 65, disabled or blind. 
• Requires mandatory contribution of recipient's income. 
• Individual state by state differences create a different program in each state. (Generally similar, but may be different in specific application.) 

Even though the Medicaid program seemingly has strict financial requirements, there are options with which a family can restructure its assets to qualify for benefits while preserving at a large part of the assets for the remaining family members and or the person in the nursing home. It is best to contact a financial consultant for questions related to restructuring assets.