Medicare vs. Medibank — What's the Difference?
Edited by Tayyaba Rehman — By Fiza Rafique — Updated on May 8, 2024
Medicare is a public health program in the U.S. providing health insurance to people 65+ and certain younger individuals with disabilities, whereas Medibank is a private health insurance provider in Australia.
Difference Between Medicare and Medibank
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Key Differences
Medicare is a federal program in the United States that offers health coverage if you are 65 or older or have a severe disability, no matter your income. Whereas Medibank is an Australian health insurance company offering various private health insurance options to individuals, families, and businesses.
Medicare provides several parts that cover specific services: Part A for hospital insurance, Part B for medical insurance, and Part D for prescription drugs. On the other hand, Medibank provides a range of private health insurance policies including hospital cover, extras cover, and combined packages.
Funding for Medicare is primarily through payroll taxes, premiums, and federal budgets. In contrast, Medibank operates on a for-profit basis, funded by premium payments from its members and other business activities.
Medicare is designed to ensure that all eligible seniors and disabled individuals in the U.S. have access to affordable healthcare. Conversely, Medibank competes in the market with other insurers and aims to attract customers with various insurance products and services.
Beneficiaries of Medicare can face certain out-of-pocket costs such as deductibles and copayments, which can be mitigated by purchasing additional Medigap insurance. Medibank customers can tailor their coverage levels and opt for higher premiums for more comprehensive coverage to reduce out-of-pocket expenses.
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Comparison Chart
Type of Service
Public health insurance program
Private health insurance provider
Eligibility
Age 65+ or specific disabilities
General public, no age or health restrictions
Coverage Scope
Hospital, medical, prescription drugs
Hospital cover, extras cover, combined packages
Funding
Payroll taxes, premiums, federal support
Premiums, other business activities
Primary Market
United States
Australia
Compare with Definitions
Medicare
Provides various parts such as Part A (hospital insurance) and Part B (medical insurance).
Medicare Part A covers most hospital stays for beneficiaries.
Medibank
Operates competitively in the health insurance market, often including additional benefits like dental and optical.
Medibank offers packages that include preventive dental check-ups.
Medicare
A federal health insurance program for people aged 65 and over and for certain younger people with disabilities.
After turning 65, John enrolled in Medicare to cover his healthcare needs.
Medibank
Provides tailored health insurance solutions, which can be adjusted to meet individual or family needs.
Medibank’s family cover plans offer discounts for dependents.
Medicare
Eligibility is based on age or disability, without an income requirement.
Medicare eligibility begins at age 65, regardless of income levels.
Medibank
An Australian private health insurer offering various health insurance products.
Sally chose Medibank for its comprehensive hospital and extras cover.
Medicare
A program under the US Social Security Administration that reimburses hospitals and physicians for medical care provided to qualifying people over 65 years old.
Medibank
Medibank Private Limited, better known as simply Medibank, is one of the largest Australian private health insurance providers, covering 3.7 million people in 2021. Medibank initially started as an Australian Government not-for-profit insurer in 1976, before becoming for-profit in 2009 and privatised by the Abbott Government in 2014.
Medicare
(Canada) The Canadian public health insurance system.
Medicare
Health care for the aged; a federally administered system of health insurance available to persons aged 65 and over
Common Curiosities
What is Medicare?
Medicare is a U.S. public health program providing insurance mainly to people over 65 and those with certain disabilities.
What is Medibank?
Medibank is one of the largest private health insurers in Australia, offering a variety of insurance products.
What types of plans does Medibank offer?
Medibank offers hospital, extras, and combined health insurance plans.
Does Medicare cover prescription drugs?
Yes, Medicare Part D covers prescription drugs.
Can anyone join Medicare?
Eligibility for Medicare is generally restricted to individuals 65 and older or those with qualifying disabilities.
Are there out-of-pocket costs with Medibank?
Yes, depending on the chosen plan, there can be out-of-pocket costs like deductibles and copayments.
How is Medicare funded?
Medicare is funded through payroll taxes, premiums paid by beneficiaries, and federal budget allocations.
What additional benefits does Medibank provide?
Medibank offers benefits like gym memberships and health apps depending on the chosen plan.
How can I join Medibank?
You can join Medibank by selecting a health insurance plan that suits your needs and applying either online, by phone, or in person.
Is Medicare available outside the U.S.?
No, Medicare is available only within the U.S.
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Written by
Fiza RafiqueFiza Rafique is a skilled content writer at AskDifference.com, where she meticulously refines and enhances written pieces. Drawing from her vast editorial expertise, Fiza ensures clarity, accuracy, and precision in every article. Passionate about language, she continually seeks to elevate the quality of content for readers worldwide.
Edited by
Tayyaba RehmanTayyaba Rehman is a distinguished writer, currently serving as a primary contributor to askdifference.com. As a researcher in semantics and etymology, Tayyaba's passion for the complexity of languages and their distinctions has found a perfect home on the platform. Tayyaba delves into the intricacies of language, distinguishing between commonly confused words and phrases, thereby providing clarity for readers worldwide.
