In the United States Medicare Tax is taken out of everyone's pay and matched by the employer (there may be exceptions, but I don't know them).
Payroll TaxesThe Medicare tax rate is 2.9% for the employee and the employer. You will withhold 1.45% of an employee's wages and pay a matching amount for Medicare tax. There is no wage base for the Medicare portion of the FICA tax. Both the employer and the employee continue to pay Medicare tax, no matter how much is earned.
Medicare is for those 65 and older.
Medicaid is jointly funded by the states and federal government and is designed for low income families.
The Medicaid program was created in 1965 by Congress as Title XIX of the Social Security Act. Medicaid, or medical assistance, is administered by state Medicaid agencies within broad parameters established by federal regulations. Medicaid is a health program designed primarily to help certain categories of low-income individuals with few financial resources.
My mother has never had any trouble with Medicare. She has had trouble with health providers telling her that something is covered by Medicare and afterwards finding out that it isn't and having to pay out of pocket.
People can also carry private insurance, as well as Medicare, but Medicare is the primary provider. Medicare can be a
secondary provider, but I'm not familiar with how it works.
"Peshat is what I say and derash is what you say." --Nehama Leibowitz