Medicare is a federal program that provides health coverage if you are 65 or older or have a severe disability, no matter your income. Medicaid is a state and federal program that provides health coverage if you have a very low income.Medicare is an insurance program. Medical bills are paid from trust funds which those covered have paid into. It serves people over 65 primarily, whatever their income; and serves younger disabled people and dialysis patients. Patients pay part of costs through deductibles for hospital and other costs.Many caregivers are confused about the difference between Medicare and Medicaid. Here's a brief explanation: Medicare is a federal health ..Medicare and Medicaid are both federal healthcare programs, but there are some major differences between the two. These differences primarily have to do with …Medicare and Medicaid are very different. Medicaid is a federal program for low-income, financially needy people, set up by the federal government and Medicare and Medicaid are both government-sponsored programs designed to help cover healthcare costs. Because the programs have ..