How are Medicare and Medicaid Different? A lot of folks confuse Medicaid with Medicare. I commonly refer to Medicare as healthcare insurance, covering hospitals, doctors, prescriptions, and general healthcare coverage. Medicaid is long-term care coverage for most. It can be some indigency needs for income-based or resource-based. But the main purpose for us is to help cover long-term care, and people get confused with what Medicare or Medicaid will cover in a nursing home or a skilled facility. Medicare is rehabilitation, so it usually covers anywhere from up to 100 days after hospitalization, depending on the show of improvement. We switch to private payer or Medicaid when improvement is no longer available or achievable. Medicaid is long-term care.