Final answer:
Medicare consists of four parts each funded differently: Part A through payroll taxes, Part B through premiums and general revenues, and Parts C and D through similar means to Part B. Medicaid is a joint program between states and the federal government for low-income individuals and varies across states.
Step-by-step explanation:
The Medicare program is composed of four parts: Part A (Hospital Insurance), Part B (Supplementary Medical Insurance), Medicare Advantage (Part C), and Part D (Prescription Drug Benefits). Part A is mainly funded by a payroll tax, while Part B is financed through beneficiary premiums and general revenues. Medicare Advantage offers private plan options to beneficiaries, and Part D provides prescription drug coverage, both funded similarly to Part B.
The Medicaid program, also created in 1965, differs from Medicare as it is designed for low-income individuals and families, with funding shared between state and federal governments. Medicaid coverage, eligibility, and benefits vary state by state. Both Medicare and Medicaid play a critical role in providing healthcare services to different segments of the population and are part of larger efforts like the War on Poverty initiated by President Lyndon B. Johnson during the 1960s.