There are numerous health insurance plans that offer good and well appreciated services in the line of health insurance to their customers or clients. Today we will be discussing about the differences between Short- term health insurance and The Patient Protection and Affordable Care Act otherwise known as Obamacare. These two insurance options are of great importance to the American people as they offer outstanding services in the line of medical insurance.
The short-term health insurance or short term limited duration insurance as it is called refers to those health insurance plans that come a limited duration in respect to time with just or only several months or sometimes a year period. These plans were implemented to cater for people who need temporary medical assistance or insurance to cover the gap left of from longer term plans.
Short term plans are naturally less expensive when compared to Obamacare and any other traditional plans but they do not cover pre-existing conditions like illnesses that may have started before a person’s health benefit went into effect.
The short term health insurance plans are not available for purchase under any state operated health insurance marketplaces such as HealthCare.gov because these plans do not cover or cater for everything regarding your medical expenses like preventative treatments which are given to patients to prevent the occurrence or stop the infection of various diseases in the system, these plans do not cover also pre-existing conditions and they are often not eligible for any federal financial aid that may be required.
On the other hand, we have the patient protection and affordable care act (PPACA) which is shortened to affordable care act and later nicknamed Obamacare was signed into law by the then president of the states, President Barack Obama on the 23rd day of March 2010. Ever since then the affordable care act has represented the United States healthcare system since the passage of Medicare and Medicaid in 1965 alongside the health care and education reconciliation act of 2010.
Obamacare works by ensuring that everyone gets a health insurance otherwise they are expected to pay tax. The patient protection and affordable care act provides clients and citizens with subsidies for middle income families to be able to access quality healthcare delivery. The act further expands Medicaid plans to more low income people as well while helping small businesses to offer health insurance.
The affordable care act pays for its client subsidies by taxing some health care providers around the United States as well as families that earn a high income. Medicare also has recently begun paying doctors for the quality of care rendered to patients under this scheme rather than for a fee for service basis. The ACA was initially designed to lower the cost of quality health care while still providing better health care services for the society as a whole. The affordable care act has released a whole lot of stress on the United States federal budget and has also helped to ease the sores on the health care reforms as it used to be so difficult for customers to pay for quality health care.
Obamacare has furthermore reduced health care cost and its general rising by allowing and giving parents the chance and opportunity to add their children and wards up to the age of 26 hereby leaving the system with more healthy and strong people who pay premiums but do not use the system for now. Obamacare has achieved this by also allowing the poor to get reliable treatment for any issue concerning chronic illnesses before they might actually need the emergency room.
When customers are under the affordable care act, they receive care for preventive illnesses unlike the short term health insurance plans. The act further subsidizes the prescription cost for customers who are on Medicare plans, where seniors can actually afford their medications hereby reducing the number of visits one makes to the emergency rooms.
Some customers may still prefer to choose a short term insurance plan may be because they find it more preferable when compared to the affordable care unit. Well the short term insurance scheme has a lot of advantages that it comes with some of which are;
- Short term plans are considered to be more affordable when compared to other forms of major medical health insurance which may be depending on your current state of location.
- The short term plan you select can be renewed after its initial expiration of 12 months to up to 36 months in a row
- When you are customer or patient with a short term insurance plan, you can continue with a specific doctor which means you do not have to change a doctor or hospital whenever you come for your medical checkups.
- Short term plans generally do not have open enrollment period restrictions which means that you can apply for your plan whenever you wish and afterwards you will be notified or the activation of your coverage and kick start using it the very next day. This happens to be a problem to most customers that wish to enroll for the affordable care act as the enrollment usually comes with strict requirements regarding each plan that must be followed to the later.
Short term plans naturally have is not intended for everyone, people who have chronic diseases or infections are not allowed to purchase the plan as well as customers with high and complex medical needs, but Obamacare offers benefits that can suit customers with both chronic and complex conditions which in some cases may include mental needs. People with these kind of needs are generally advised to consider purchasing an affordable care act plan for themselves or affected wards.
Short term health insurance can still be useful for people who might have missed the annual open enrollment periods for Obamacare/ACA plans, people who might have waiting periods before they can enroll into another major medical insurance plan. The Short term insurance can also be well exploited by students, recent graduates, part time or temporary workers or even workers who might have retired but still not qualified for Obamacare due to their age i.e. still young. Some hospitals or doctors who do not accept Obamacare or any of their plans around some selected areas might force you into choosing a short term health insurance plan.
Affordable care act plans naturally have broader and wider benefits than the ones offered by short term health insurance plans which may cost more than the short term insurance due to the absence of premium subsidies in a few selected areas.
All ACA health plans are all required to have at least the “10 essential health benefits” which in the part of short term health insurance, their plans do not have an arranged set of benefits rather they offer services that are narrowed to cover a few major medical coverage which include healthcare costs in the events of accidents and/or illnesses.
In conclusion, The short term health insurance plans can cover just a few health benefits for specified period of time although they can be extended to a period of 36 months, while the Obamacare plans cover all medical expenses but you have be accepted after the open enrollment period for you to attain these benefits.