Before we dive into the ins-and-outs of the “look-back period,” let’s discuss the difference between Medicare and Medicaid. People frequently conflate the two. So to dispel any confusion:
- Medicare is a payroll entitlement program for which most retirees aged 65 and older are eligible.
- Medicare covers about 80 percent of all senior citizens’ medical costs.
- Medicaid is a social welfare program for people who’ve exhausted their assets. Since healthcare costs are expensive, many senior citizens tap Medicaid in their twilight years.
