Medicaid and Obamacare are popular medical insurance covers in the United States. The two health schemes are often used interchangeably by citizens. In other words, most people can’t tell the differences between Medicaid and Obamacare. Fortunately, this piece clears this confusion. Check it out!
Obamacare vs Medicaid
Obamacare is an act that works to offer affordable health insurance. The formal name is Affordable Care Art, ACA. Its main goal is to help all US citizens access health services. Obamacare guarantees cheap health insurance despite the different financial statuses among various residents.
On the other hand, Medicaid is a healthcare insurance program that assists low-income families in getting affordable healthcare. Its main goal is to provide proper health support to the less privileged.
How do they work?
When it comes to the differences between Medicaid and Obamacare, learning how each work can help distinguish the two. Obamacare works under national laws since the government leads the scheme. Its laws come from the national level and have little to do with state affairs. How does it help people? The scheme ensures that insurance companies support their customers at all times. It also ensures they treat everybody similarly despite their pre-existing conditions. Besides, it works to protect citizens against unjustified charges by insurance companies.
Medicaid works under state laws but is mainly funded by the national government. Since the laws are at the state level, Medicaid benefits vary depending on the state. This healthcare scheme focuses on people with disabilities, the elderly, pregnant women, and low-income individuals.
The Origin of Medicaid and Obamacare
Former US President Barack Obama initiated the Obamacare healthcare scheme. It took effect in 2014 during his tenure. As for Medicaid, it started in 1966.
The Medicaid health program accepts new applicants throughout the year. As a result, you can apply anytime. However, Obamacare has an official annual enrollment period. It is a set period where citizens apply for a health insurance plan. Obamacare enrollment is also possible under the special enrollment period. If something happens and you need to apply for Obamacare, you can do it under the special enrollment.
When does coverage start?
The coverage period is also one of the differences between Medicaid and Obama. The annual Obamacare enrollment period is from November 1st to January 15th. If you apply for Obamacare in November and early December, your coverage takes effect on January 1st. If you apply in the latter application days, the coverage isn’t effective until February or March. Obamacare coverage takes time to take effect after enrollment. Besides, it is a national law dealing with all US citizens.
The Medicaid program takes effect immediately after you join the healthcare program. For example, if you receive feedback that your application was accepted, you can use the coverage the same day.
Why is retroactive coverage one of the differences between Medicaid and Obamacare? The answer is simple. Obamacare doesn’t offer retroactive health coverage. Anything you have spent before the coverage start date isn’t covered. However, they are exceptional cases such as adopting a child or the recent COVID-19 pandemic crisis.
Medicaid primarily offers retroactive coverage in most states. An excellent example is a 5-month pregnant mother joining Medicaid cover. The healthcare scheme will pay for all the prenatal care, including the first four months. Before, Medicaid was offering retroactive coverage to all. However, some states appealed to end the retroactive coverage during President Trump’s administration. Equally important, Medicaid in all states takes effect on the first day of the month you receive the approval.
Application of Medicaid vs Obamacare
Obamacare’s official name is the Affordable Care Act. On the other hand, Medicaid is an affordable health plan. That’s enough to explain why many people use Medicaid and Obamacare interchangeably. Additionally, the application process between the two is quite similar. It is such things that make it hard to differentiate the two.
For instance, you can apply for the Obamacare healthcare program but get Medicaid insurance coverage. That’s due to the possibility of you applying for the ACA health insurance program, but the state finds you eligible for Medicaid. Under such circumstances, it passes the data to Medicaid. Therefore, some people apply for Obamacare regulated plans and get Medicaid instead. For that reason, the two are often confused with each other.
Obamacare is often associated with private health insurance providers. That said and done, most states provide Medicaid services via private insurance companies despite being a federal government healthcare program. For example, citizens often receive Medicaid cards from different private companies. As a result, people think that they have Obamacare health insurance.
Final words: Differences between Medicaid and Obamacare
It is crystal clear that Medicaid and Obamacare are two different things. That’s despite the duo playing a significant role in providing better healthcare access in the United States. They differ in various ways, including eligibility and application, but their goals are the same. However, as much as there are differences between Medicaid and Obamacare, something is worth noting. It is the understanding of these differences that ensures you enjoy affordable health care services. You understand that not being eligible for Medicaid doesn’t mean paying too much for your health insurance. On the contrary, you can also receive affordable services thanks to Obamacare. Don’t forget that FindMyQuotes is a great landing place if you want affordable health care. You deserve it, and its team is there to help you get it.