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The Difference Between ACA and Medicaid

Do you know the difference between the Affordable Care Act and Medicaid? On the ACA health exchange health insurance is payed in the form of subsidies from the federal government. It can be confusing as to how government-subsidized private health insurance is really all that different from government-funded Medicaid. Although the ACA (Affordable Care Act) does expand Medicaid coverage to more people, the Affordable Care Act is not an insurance plan, it is a set of regulations. The ACA’s purpose is to regulate the health insurance industry.

  • ACA is offered by private insurance companies. It provides assistance to businesses, individuals and families and it allows you to keep the insurance you already have if you chose to do so. Medicaid requires you to be on one of their government-funded insurance plans.
  • Medicaid is effective as soon as your approved. ACA goes into effect the following year.
  • ACA only allows you to enroll or switch health insurance carriers during open enrollment. Medicaid allows you to enroll all year around.
  • Medicaid is retroactive.
  • ACA requires Americans to either have qualifying health insurance or pay a tax penalty. Medicaid is considered health insurance.
  • Medicaid sends funding straight to the doctors. The ACA gives the power of health insurance back to the agents.
  • ACA or Obamacare programs have co-payments, coinsurance and deductibles. Medicaid is 100% free.
  • Medicaid is funded through federal and state taxes. ACA is market for purchasing private insurance.

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