A: Medicare and Medicaid are government programs that help people cover the cost of medical care.

Medicare is a health insurance program provided by CMS -- the Centers for Medicare & Medicaid (formerly the Health Care Financing Administration) -- a federal agency. It is available to nearly all older Americans regardless of circumstance. Its coverage and costs are uniform coast to coast.

Medicaid, on the other hand, provides coverage only for persons with limited assets and low income. Its coverage and benefits provisions vary from state to state. Those benefits, however, can be generous, often covering the cost of nursing home stays as well as some in-home care -- coverage that Medicare doesn't provide. Because of that and because health care is so expensive, many seniors (and many families of seniors) would like Medicaid to pick up the tab. Thus, seniors may try to "spend down" their assets; in other words, they try to qualify for Medicaid.

Not all spend-down strategies are legal. Moreover, not all strategies will preserve assets for the community (non-institutionalized) spouse if there is one. It's a good idea to contact CMS to get the rules and regulations. It's also a good idea to consult an attorney expert in elderlaw.