In a post shared on his website in April, personal finance expert Dave Ramsey has called out the ongoing confusion around Medicare and Medicaid, offering a straightforward explanation that could help Americans avoid costly mistakes in retirement planning.
Ramsey Breaks Down Medicare's Role For Seniors
Ramsey clarified that Medicare is a federally run health insurance program for Americans age 65 and older or those with qualifying disabilities, regardless of income.
Most people have a limited understanding of how Medicare works, and the complexity of the system often leaves them confused. According to Ramsey, while eligibility begins at age 65, many individuals struggle to grasp what Medicare does and does not cover.
He emphasized the importance of understanding enrollment windows, coverage parts (A, B, D), and supplemental options like Medigap to fill gaps in Original Medicare.
Medicaid Is Not Insurance—It's Financial Aid For Low-Income Americans
Ramsey explained that Medicaid is a joint federal-state program designed to assist low-income individuals and families. “It isn't insurance—it's more like an aid program that helps low-income folks pay for things,” he said.
Eligibility, benefits, and costs vary by state, but key services like hospital care, transportation, and physician visits are federally mandated. In some cases, individuals may qualify for both Medicare and Medicaid, known as dual eligibility.
Trump Launches 2026 Health Tracking Plan With Big Tech, CMS Support
Last week, President Donald Trump unveiled a new private health tracking system designed to modernize patient access to medical records through a partnership between the federal government and major tech firms.
Announced at a White House event titled "Making Health Technology Great Again," the initiative will be maintained by the Centers for Medicare and Medicaid Services (CMS) and supported by tech giants like Amazon.com (NASDAQ:AMZN), Google owned by Alaphabet Inc. (NASDAQ:GOOGL) (NASDAQ:GOOG), and Apple Inc. (NASDAQ:AAPL), alongside healthcare institutions such as the Cleveland Clinic and UnitedHealth Group (NYSE:UNH).
The system, set to launch in early 2026, will allow patients to voluntarily share their health data across apps and providers while maintaining data privacy. Officials emphasized that participation will be strictly opt-in, with no centralized government database involved.
UnitedHealth Slumps As Investors Pivot To Property And Casualty Insurers
Earlier in July, Managed Care insurers have faced significant market pressures in recent months, with UnitedHealth Group leading a sharp decline in market capitalization following its withdrawal of 2025 earnings guidance and the unexpected resignation of CEO Andrew Witty.
Despite a nearly 41% drop in Q2, UnitedHealth remains the largest U.S. insurer. Meanwhile, S&P Global’s analysis reveals a sector-wide split: managed care firms are struggling, while property and casualty insurers are seeing gains, suggesting a shift in investor confidence.
Read Next:
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo courtesy: Shutterstock
