1. Medicare and Medicaid are two different government programs that greatly influence health care. Medicare is a federal U.S. government program funded by Social Secunity and available to all individuals over age 65, regaedless of income. It also covers the health care of some disable or handicapped persons of all ages. Medicaid is a sepaeate program funded by each state to help meet the medical and health care needs of low income individuals or families. Medicaid programs and eligibility vary from state to statr.