Obamacare, signed into law by President Barack Obama in 2010, seeks to improve the quality and affordability of health insurance, expand public and private coverage, and reduce healthcare costs.
Medicare is a federally run program that provides health coverage to Americans aged 65 or older and certain disabled individuals. Unlike Obamacare, its eligibility requirements are quite stringent.
What is Medicare?
Medicare is the national health insurance program for people 65 and older. It also offers coverage to people younger than 65 with certain disabilities such as end stage renal disease or amyotrophic lateral sclerosis (ALS).
Medicare covers hospital stays and doctor’s visits, as well as some home health care, hospice and medical tests. It is divided into four parts: Part A, Part B, Part C and Part D.
Medicare Part A and Part B both cover various services and have varying deductibles and out-of-pocket maximums. While Original Medicare may be the best option for most people, you could get a better deal with either a Medicare Advantage plan or Supplement plan.
Medicaid is a joint federal-state program that assists low-income individuals with healthcare costs and long-term care needs. While it’s available across all states, eligibility requirements and benefits may differ from one jurisdiction to another.
What is Obamacare?
Obamacare, also known as the Affordable Care Act (ACA), passed in 2010, is a landmark piece of legislation designed to make obtaining health insurance simpler and reduce healthcare expenses.
The Affordable Care Act (ACA) seeks to make healthcare more accessible for all Americans and protect consumers from abusive insurance company practices. Furthermore, the ACA guarantees that individuals with pre-existing conditions can purchase health coverage and preventive care without paying more.
It has also made prescription drugs more accessible for many. According to the Centers for Medicare and Medicaid Services, prices on prescription drugs have dropped 26% since ACA implementation in 2013.
The Affordable Care Act (ACA) offers tax credits and subsidies to help lower income individuals afford health insurance. This assistance is available to families making up to 400% of the federal poverty level.
Who is eligible for Medicare?
Medicare is a federal health insurance option available to people 65 and older. It consists of Part A (hospital insurance) and Part B (medical coverage).
However, certain individuals with disabilities or End-Stage Renal Disease may be eligible for Medicare earlier. These people are known as dual-eligibles.
Some of these people may also qualify for Marketplace plans, which offer lower premiums and essential benefits like annual checkups, maternity/newborn care, prescription drugs, mental health services and more.
When enrolling in a Marketplace plan, your eligibility for Medicare premium subsidies is determined by your income level. Once you reach premium-free Medicare Part A eligibility, any subsidy payments will cease.
If your Marketplace plan is compliant with the Affordable Care Act (ACA), it’s illegal for anyone to sell you another exchange plan after becoming eligible for Medicare. So if you want to switch over, learn how to cancel your Marketplace plan before receiving coverage under Medicare.
Who is eligible for Obamacare?
The Affordable Care Act (ACA) extends health insurance to people of all ages and income levels, with the goal of decreasing the number of uninsured Americans and offering them better quality healthcare.
The Affordable Care Act (ACA) offers tax credits that help pay for health insurance premiums and cost-sharing reductions to reduce out-of-pocket expenses such as deductibles and copays. These benefits are available across a wide range of plans available on the Marketplace.
Low income individuals are encouraged to enroll for 2023 coverage during Open Enrollment on the Marketplace. Outside of Open Enrollment, those earning up to 150% of the federal poverty level (FPL) can enroll year-round in marketplace plans through a special enrollment period introduced in 2022 for this population.
Employer-based health coverage remains eligible for ACA subsidies even if you lose your job or switch jobs. However, these subsidies will no longer be available to people with employer-based coverage that has a high employee share of the premium.