Medicaid and Medicare are two government assistance programs that provide medical and health related services to various groups of people in the USA. Although the 2 programs are different, yet both are managed by the Centers for Medicare and Medicaid Services, a division of the U.S. Department of Health and Human Services (HHS).
Medicare is a social insurance program that serves more than 44 million enrollee citizens (as of 2008). The program costs about $432 billion, or 3.2% of our National GDP, in 2007. Medicaid is a social welfare (or social protection) program that serves about 40 million people (as of 2007) and costs about $330 billion, or 2.4% of GDP, in 2007. Together, Medicare and Medicaid represent 21% of the FY 2007 U.S. federal government.
Both Medicaid and Medicare were created when President Lyndon B. Johnson signed amendments to the Social Security Act on July 30, 1965.