CAVIT Medical Science Practice Exam 2025 - Free Medical Science Practice Questions and Study Guide

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What is a key distinction between Medicare and Medicaid?

Medicare is funded solely by state taxes

Medicaid provides insurance to the elderly

Medicare is a federal program while Medicaid is state-administered

The distinction that Medicare is a federal program while Medicaid is state-administered is crucial in understanding how these two programs function. Medicare is designed to provide health coverage primarily for individuals over the age of 65, as well as certain younger individuals with disabilities, and it is funded and regulated at the federal level. This uniformity allows for consistent benefits across the country.

On the other hand, Medicaid is jointly funded by both federal and state governments but is administered by the states themselves, which leads to variations in coverage, eligibility, and benefits from one state to another. Each state can design its program within federal guidelines, which can result in significant differences in services provided, eligibility requirements, and application processes.

This distinction underscores the different roles these programs play in the U.S. healthcare system and the diverse populations they serve. The other options either misrepresent the nature of these programs or are overly specific in ways that do not capture their broader purposes.

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Medicaid only covers veterans and their families

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