Polish-American families
Medicare vs Medicaid in Illinois: what's the difference
The names sound alike and get mixed up. Medicare is federal health insurance for people 65 and older and some younger people with disabilities. Medicaid is a state program for people with low income. In Illinois your parent can have both at once, and then the two programs work together. Here they are side by side.
| Medicare | Medicaid in Illinois (AABD) | |
|---|---|---|
| Who runs it | Federal (CMS); you apply through Social Security | The state of Illinois (HFS, DHS) with federal money |
| Based on | Age 65+, disability or certain conditions | Income and assets |
| 2026 limits, 1 person | No income limit | Income up to $1,330 a month; assets up to $17,500 |
| Both at once | Possible: “dual eligible”, with extra enrollment windows | |
Medicare: by age or health
Medicare eligibility depends on turning 65, disability benefits or certain conditions (ESRD, ALS), and immigration status. Income doesn't affect eligibility. Social Security handles the application.
Medicaid in Illinois: by income and assets
Illinois runs Medicaid with state and federal money. For people 65 and older, blind or disabled, the program is AABD Medical. Under the Illinois Department of Human Services standards for 2026, a single person's income can't exceed $1,330 a month, and assets can't exceed $17,500.
Applications go through the state's ABE portal (abe.illinois.gov) or a local DHS Family Community Resource Center.
When your parent has both
Someone with Medicare and Medicaid is "dual eligible". Medicaid can then cover some costs Medicare doesn't, such as premiums and deductibles. If income is a little above the Medicaid limit, the Medicare Savings Programs may help: see Medicare Savings Program in Illinois.
People with Medicaid or Extra Help also get extra chances to change plans:
- Once a month: a standalone drug plan
- They can switch once per calendar month into a standalone Part D drug plan. That includes leaving a Medicare Advantage plan with drug coverage for Original Medicare plus a standalone drug plan.
- Once a month: an integrated D-SNP
- People with full-benefit Medicaid can switch once a month into an integrated D-SNP.
- Exception
- These windows aren't open to at-risk beneficiaries in a Part D drug management program.
Sources: Illinois DHS WAG 25-03-02 (2026 standards); medicare.gov. Limits change every year, usually in April; the 2027 limits haven't been announced yet. We can explain how Medicaid fits with Medicare and which plans make sense with both, in Polish for your parent and English for you, with no obligation to enroll. Book a consultation.