Food Stamps and Medicaid

Definition

Food stamps (now known as SNAP) provide eligible low-income individuals with funds for purchasing food; Medicaid is a state and federal program that helps with medical costs for some people with limited income and resources.

Analogy

Consider Food Stamps and Medicaid as gift cards from the government. One helps you buy groceries when money's tight (like a supermarket gift card), while the other assists with medical expenses (like an insurance card).

Related terms

Supplemental Nutrition Assistance Program (SNAP): The program that provides assistance to low-income individuals and families to purchase food.

Medicare: A federal program that provides health coverage if you are 65 or older or have a severe disability, no matter your income.

Children's Health Insurance Program (CHIP): A state and federal partnership that provides low-cost health coverage to children in families that earn too much money to qualify for Medicaid.