Differences Between Medicare And Medicaid

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1. The two major differences between Medicare and Medicaid are who the plan is provided for and who is in charge of providing each plan. The majority of other differences stem from these two dissimilarities. Medicare is a health insurance plan for people over 65 years of age (also includes a few other smaller groups such as younger children with certain disabilities), while Medicaid is provided for citizens who cannot afford other healthcare insurance plans due to their low income. Because of this, Medicaid pays the providers less, so it is not uncommon that doctors will refuse to take patients who use Medicaid. Medicare, on the other hand, hardly ever negotiates prices, so doctors usually end up receiving what they charge. Medicare is completely…show more content…
There are many reasons as to why healthcare is more expensive in the United States than any other country. One of them is because of the high profit margins that are protected by pharmaceutical companies. In other countries like the UK, the government can negotiate lower prices which brings down the cost, while the US is stuck paying higher prices because legislation greatly reduces negotiating power of the US government. Another reason is that consumers in America are not the direct payer, therefore, they generally do not care about how much providers charge because it does not directly affect them (through direct pay or taxes). Along the same lines, in many other countries, the government is the only buyer of medical services because patients pay for services through taxes. This causes the healthcare market to essentially be a “buyer’s market,” which drives the cost down. Another major reason for expensive healthcare is because American doctors are paid much more than doctors in other countries. A big part of this has to do with the very long and expensive road of medical school in the US, necessitating that doctors get paid more so that the process is worth it for them financially. Finally, the healthcare system is very bloated, with payments usually going through multiple intermediaries and each insurance company taking a percentage of the payment. The government does not regulate the costs in the industry very well, essentially creating a “seller’s market.” These are just some of the reasons of why the most expensive healthcare in the world is in the United
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