Texas Life & Health Insurance Exam — All Questions
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1 questions
Group Insurance, Social Insurance & Senior Products
Which statement correctly distinguishes Medicare from Medicaid?
- a.Medicare is a needs-based program for low-income individuals, while Medicaid is based on age
- b.Medicare is a federal health program primarily for people age 65 and older, while Medicaid is a needs-based program for low-income individuals funded jointly by federal and state governments✓
- c.Both are strictly age-based programs with no income requirement
- d.Medicare covers only prescription drugs, while Medicaid covers only hospital stays
Medicare is a federal program that primarily covers people age 65 and older (and certain younger people with disabilities or end-stage renal disease), regardless of income. Medicaid is a joint federal-state program that provides coverage based on financial need (low income and limited assets). The first option reverses the two programs. Neither is purely age-based without regard to income (Medicaid is means-tested), and the descriptions of drug-only or hospital-only coverage misstate both programs; Medicare has multiple parts (A, B, C, D) covering hospital, medical, and drug benefits.