People often confuse Medicaid and Medicare. While they are both federal health insurance programs, significant differences exist. Medicaid is a state and federal program that provides health insurance for low-income people of all ages. At the same time, Medicare is a federal program that provides health insurance for people aged 65 or older. One key difference is that Medicaid will pay for long-term care. Long-term care can be provided in your home, a nursing home, or an assisted living facility. It may include medical care, therapy, 24-hour care, personal care, and custodial care (homemaker services). This coverage means that Medicaid can be a vital safety net for those who cannot afford the high costs of long-term care.