Difference Between Medicaid and Public Option

Medicaid vs Public Option

There is no denying the importance of good health. And there is no denying that good health comes, in a large part, from preventative treatment. However, millions of Americans eschew preventative treatment every year because they are uninsured and can’t afford to pay to see a doctor. At the same time, millions more Americans are under-insured and still stay away from an annual doctor visit because they can’t afford the co-pay or they are afraid their premiums will go up. Currently, there is one system in place to bring basic health care to those who need it most: Medicaid. Depending on the outcome of this Congressional session there may soon be another health insurance choice: public option.

Definition
Medicaid ‘“ is a federal and state funded program that draws from tax revenues to pay for medical costs for certain people who can’t afford medical treatment.
Public Option ‘“ is a proposed bill that would allow the government to offer a self-funded health insurance option that would be in direct competition with private providers.
The fundamental difference between Medicaid and Public Option health care is that you currently pay taxes to support Medicaid but you wouldn’t have to pay a penny to support Public Option unless you chose to use it.

History
Medicaid ‘“ came into being in 1965, as an amendment to the New Deal Social Security legislation. It was meant to provide government funded health care to certain categories of people such as children and pregnant women.
Public Option ‘“ is currently being debated on the congressional floor in 2009. It has the president’s full backing and could be signed into law as early as 2010. Shortly thereafter, any consumer would have the choice to purchase public option health insurance rather than health insurance from a private company.

Intentions
Medicaid ‘“ is a child of Social Security, and remains true to the philosophy that that it is the duty of the public at large to help those in need. Poverty is not the only qualifier for Medicaid, but only poor people are eligible. Generally the segments of society who are unable to help themselves, such as children, are eligible for Medicaid benefits, but the qualifications vary from state to state.
Public Option ‘“ wants to directly compete with private insurance companies to keep the cost down for consumers. Especially in rural areas, consumers may only be given a single choice for their health insurance needs and therefore have to pay the asking price. The public option should foster competition and spur health insurance companies to be more efficient and inclusive.

Summary:
1.Medicaid is a health care option that is funded by tax payers to help the neediest members of society whereas public option health care is sponsored by the government but funded by the premium payments of its users.
2.Medicaid is part of the Social Security package, whereas public option is a brainchild of the 21st century that gives consumers a public or private choice when purchasing health care.

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