If Medicare and Medicaid confuse you, welcome to bureaucracy.

Millions of people are puzzled with the programs and unless you're a long-term care expert, understanding the differences can be like looking through mud.Even today, I admit to being lost when reading all the parts that make up the insurance plans. And since they create a lot of mystery and confusion for many Americans, I'll make an attempt to clearly address them and try to make some sense of it all.Hopefully, we'll both gain a better understanding.Medicare and Medicaid are government-sponsored.Each intended to help cover health care expenses. Since the names are so similar, people confuse the two and how they work, the coverages they offer, and the eligibility requirements.Basically, Medicare is health care insurance for people over 65 and those living with certain disabilities. Medicaid is a joint federal and state program that helps cover medical costs for individuals with limited income and resources.The funds to run both programs come from taxpayers.MedicareA federal health insurance program that is available regardless of income. It has four parts:Part A: Is a hospitalization insurance program for inpatient care in hospitals, skilled nursing facilities, Hospice care, and home health care. You wouldn't pay a monthly premium for Part A if you or a spouse paid Medicare taxes while working.Part B: It is a medical and health insurance program that pays for physician and other health care services. It also covers outpatient and home health care, durable medical equipment, and some preventive services. You pay the standard monthly premium out-of-pocket.Part C: It is a private supplemental insurance that provides additional services.Part D: Prescription drug coverageThe Different Parts Of MedicarePart C: It is called Medicare Advantage and it contains all benefits and services covered under Parts A and B and prescription drug coverage. Medicare Advantage programs is run by private insurance companies.The Medicare Advantage health plan contracts with Medicare to provide Part A and Part B benefits. If enrolled in a Medicare Advantage Plan, the Medicare services are covered through the plan and aren't paid for under the Original Medicare.Part D: Medicare prescription drug coverage covers the cost of prescription drugs and is run by private insurance companies. It's designed to lower prescription drug costs and protect against higher future costs.Medigap is used by people enrolled in traditional Medicare and is run by private insurance companies.Its purpose is to pay for most of the out-of-pocket expenses in traditional Medicare like the 20 percent you pay for physician visits and outpatient services. It applies to the Part A hospital deductible ($1,260 in 2014 for each hospital benefits period.)Medigap vs. Medicare AdvantageOnly Medigap counts as "Medicare supplemental insurance" but Medicare Advantage plans give few extra benefits that supplements Medicare.When deciding to buy a Medigap policy or enroll in a Medicare Advantage plan, read the details of each. Pick the plan that best suits your needs and budget.Medicare has online programs to help you make these comparisons atmedicare.gov/find-a-plan/questions/home.aspx.And read this article for more explanation of Medigap vs. Medicare Advantage: cbsnews.com/news/should-you-buy-a-medigap-or-medicare-advantage-plan/Note: For more information, visit socialsecurity.gov, call Social Security at 1-800-772-1213, or contact your local State Medical Assistance (Medicaid) office.In the next Aging Matters column, learn more about Medicaid.If you have a question or need help, Carol Marak invites you to visit SeniorCare.com and complete the contact form on the site.