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This site has a couple of great articles on the difference between them.

Medicare is a general entitlement that almost everybody in the US can sign up for once they turn 65. We pay into Medicare via our FICA when working and then via our SS once we retire. Medicare in general is hospitalization, physician and other health providers costs, prescriptions, hospice & short-term rehab. Medicare is federally run and the rules & payment is set by the feds.

Medicaid is a "needs-based" entitlement. For NH Medicaid, you have to be "at-need" both financially (which basically means impoverished) and medically (which means you require skilled nursing care). Each state runs it's Medicaid program under a federal guideline. Some state have Medicaid diversion programs which will pay for AL or other community based programs besides NH long term care.
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No, it's not that simple, and it's not one or the other. If you have Medicare that's fine. You can also apply for Medicaid. Depending on your income the Medicaid may take over paying for your Medicare costs, co-pays etc. Medicare is something you've earned and paid into while working and now through your Medicare premium. Medicaid is medical welfare for low income people and is based on financial need.
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