Difference Between Obamacare and Medicaid

In this era, many diseases have and are continuously cropping up due to different circumstances like lifestyles and weather changes. The most affected is the common man and to counter that, there are many insurance plans and schemes that have been effected in different countries. Examples of those plans are the Obamacare and Medicaid plans in the US.

Due to unexpected happenings, it has become necessary for one to have sufficient savings to cater for medical care. However, the treatment options available today are highly expensive and only met by a certain group of people who can afford them. Due to this, many governments, including the US government have come up with schemes or pushed to change existing ones to take care of the common citizen.

As mentioned, citizens of the US have two most common health insurance schemes. The Obamacare and Medicaid schemes, even though they are both health schemes, have been interchanged for long by citizens and interpreted to mean the same. Some of them will refer to Obamacare as Medicaid and vice versa even when they are seeking their different services. To help ease the burden, this post seeks to clear the air and bring out the notable characteristics of each and how they differ from each other.

Meaning of Obamacare

Obamacare is an unofficial term used to refer to the federal health insurance law that was passed under the then President Obama’s government. The law was passed with the intention of improving access to health insurance for millions of the US citizens.

The official name of the law is the Affordable Care Act (ACA). It’s also referred to as the Patient Protection and Affordable Care Act in full. The term Obamacare was used loosely by opponents of the scheme and later, the then President Obama also accepted its use and is now mostly used than the official names.

Goals of Obamacare

The Universal Healthcare, another term for Obamacare was initiated to help people get access to affordable healthcare. In short, its main goal is to make sure quality insurance coverage is available to more citizens in the US regardless of their financial status. Even though many US citizens mistake the scheme as an attempt to offer free healthcare insurance, it simply was designed to make healthcare insurance more affordable.

How Obamacare Works

The Affordable Care Act is a national government scheme. It is, therefore, governed by laws passed at the national level rather than the state governments. The scheme works by way of prohibiting insurance companies from dropping an individual’s coverage if they become sick or injured. It also eliminates the possibility of patients being charged excessively because they have a pre-existing condition.

Also, it eliminates the chances of being discriminated based on reasons such as gender. In addition, the scheme protects citizens against unjustified hikes in insurance rates.

Meaning of Medicaid

Medicaid refers to a health care program designed to assist low-income earning individuals in getting affordable healthcare. It’s a joint state and federal governments program intended for different people with limited income and resources and ensures they get subsidized hospital stays, doctor visits, custodial care, long-term Medicare, and more.

How Medicaid Works

Medicaid is primarily funded by the federal government even though it runs at the state level. As such, the coverage varies from state to state. It takes care of the elderly, above 65 years of age and other citizens with some specific disabilities.

Differences Between Obamacare and Medicaid

Both schemes were designed with a view of ensuring everyone gets affordable and basic healthcare. However, there are notable characteristics that differentiate them from each other as follows:

1. Meaning of Obamacare Vs. Medicaid

Obamacare is a term used to refer to a private health insurance that a US citizen can purchase from an insurance company through the Patient Protection and Affordable Care Act. Medicaid, on the other hand, is a government-provided health insurance program designed to help low-income earners aged over 65 years and other young citizens with select disabilities.

2. Period

The Obamacare health scheme was passed and came into effect in 2014 while the Medicaid scheme was first opened in 1966.

3. Beneficiaries in Obamacare and Medicaid

The Obamacare scheme seeks to ensure everyone gets affordable health insurance coverage while the Medicaid scheme provides health insurance to Americans who are above 65 years of age. It also covers younger citizens with certain qualifying disabilities like End-Stage Renal Disease.

4. Form

The Obamacare plan helps citizens in the US to buy insurance based on insurance business reforms while the Medicare plan is a health insurance subsidy program.

Also, the Obamacare plan is a health insurance that an individual can buy from an insurance company. Medicaid, on the other hand, is a health insurance provided by the government to qualifying individuals.

5. Enrolment of Obamacare and Medicaid

For anyone seeking to enroll for the Obamacare scheme, they can only do it during the annual open enrollment exercises or if they meet the eligibility criterion for limited special enrollment periods. As for the Medicaid enrollment, one can enroll at any time of the year.

Obamacare Vs. Medicaid: Comparison Differences

Summary of Obamacare Vs. Medicaid

The two schemes are designed to offer better and affordable health insurance. Even though such conditions like the beneficiaries differ, their goals are similar. It is also worth noting that even though one can enroll for both the Medicaid and Medicare plans, one cannot register for both the Obamacare and Medicaid plans. It is, therefore, crucial that one seeks assistance from qualified offices before taking a step on any of the schemes.

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