Obamacare Vs. Medicaid and Medicare
Obamacare Vs. Medicaid and Medicare
With all the talk about healthcare, obamacare, the ACA act, and medicaid, it may be easy for some people to confuse just what each one does when it comes to health insurance. For those who are not up to date on the topic of universal healthcare, Obamacare, or it’s more official name, the Affordable Care Act (ACA), is designed to help people get healthcare at an affordable price. It’s goal is to make quality insurance coverage more available for more citizens in the United States. Many mistake the Affordable Care Act as an attempt to supply free healthcare insurance, when in reality it simply makes it more affordable.
So what is the difference between the ACA and the other government sponsored healthcare programs called Medicaid and Medicare? We will break down each of the three and specify what each one is designed to accomplish in comparison to the other.
ACA: As we mentioned earlier, the Affordable Care Act (ACA) is designed to make healthcare more affordable for more American citizens. It accomplishes this by creating laws that prohibit an insurance company from dropping your coverage if you become sick or injured, eliminate the possibility of being charged more because of a pre-existing condition or discriminatory reason such as gender, and protect against unjustified hikes in insurance rates. There are, however, penalties for not having health insurance under the Affordable Care Act. If you do not have health coverage, and make more than a certain amount a year, you have to pay a fine on your taxes. It also requires that large scale employers offer health insurance coverage to their employees.
Medicaid: Medicaid, in contrast to Obamacare, is not designed for anyone to take part in. Medicaid is designed to offer either free, or low cost health care coverage to those in need. While the ACA is done through the federal government, Medicaid is handled by the state, meaning the laws and regulations depend on your location. Those who are eligible for Medicaid include:
- Pregnant Mothers: If you are having a child, regardless if you are married or single, you may qualify for medicaid for you and your child.
- Parent of a Minor: If you have a child already born and is under the age of 18, you may qualify for medicaid coverage depending on your financial situation, or if your child requires nursing home care or home care due to a sickness, medicaid may be able to help as well.
- Disabilities: If you are blind, deaf, or otherwise physically disabled, you may be eligible to apply for medicaid. This is also extended to elderly individuals who can not afford the premiums associated with medicare.
- Low Income Individuals: If you do not fall under any of these circumstances, you may still be able to qualify for medicaid if you are in a low-income situation.
Medicare: Medicare is a program designed to help people over the age of 65, along with some younger individuals who have certain disabilities. While you may have to pay a premium, the main cost of your Medicare is paid for through your working years. Part of what is taken out of your paycheck each week now is what pays for your Medicare once you reach retirement age. Currently, Medicare benefits come in four parts.
- Part A: Hospital Care. This part pays for time spent in a medical facility.
- Part B: This part covers tests and procedures, meaning what happens to you while in the hospital or medical facility. Part B coverage requires a premium.
- Part C: Done as an alternative to normal Medicare coverage, Part C is known as Medicare Advantage plans, offer the benefits of Part A, B, and D, and are administered through private insurance companies.
- Part D: Part D covers prescription drug coverage. Part D is a required benefit of Medicare, unless you obtain it from a different source.
If you don’t have health insurance, or want to extend the possibility of offering health insurance to your employees, Vision H.R. can help set up health insurance packages that include basic health, vision, or dental coverage. We can also help you understand how medicare is taken from your employees paychecks so you can better explain it to them. These are just a small part of the services offered by the Vision H.R. team. We also offer payroll services, human resource management, staffing solutions, and management training for places like Daytona Beach, New Smyrna Beach, Deland, and Lake Mary. Contact us at (877)- 6412-0012 or visit vision-hr.com for a free quote today.
