Who is considered underinsured according to the criteria provided?

The distinction of being underinsured typically refers to individuals whose health coverage does not adequately meet their medical needs, leaving them exposed to high out-of-pocket costs. This can occur with both Medicaid and Medicare recipients for several reasons.

Medicaid often provides coverage for low-income individuals; however, certain necessary services may not be fully covered, or there may be limited access to specialists or specific treatments, which means that even someone covered by Medicaid could still face significant financial burdens depending on their individual health situation.

Similarly, while Medicare covers a substantial range of healthcare services for seniors and younger individuals with disabilities, it does not cover everything. For instance, many Medicare recipients are responsible for premiums, deductibles, and copayments, plus services like dental and vision typically require additional coverage or out-of-pocket payments. This lack of comprehensive coverage can leave many seniors and disabled individuals in a position where they cannot afford care they need, categorizing them as underinsured.

By recognizing that both social safety net programs can leave their recipients exposed to substantial healthcare costs, option D identifies the comprehensive nature of this risk of underinsurance among those relying solely on Medicaid or Medicare for their health coverage.