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What Are The Differences Between Short Term Health Insurance & Obamacare?

What Are The Differences Between Short Term Health Insurance & Obamacare?

Before drawing the differences between a short-term health insurance plan and Obama Care health reforms it is pertinent to ask the question or it is important to know what is a short-term health insurance plan and what is Obama Care or Affordable Care Act.

What is a Short-term health insurance plan?

A Short Term health insurance can also be referred to as a Temporary health insurance or a Term health insurance, provides flexible and quick health or medical coverage for those periods of time when you face a disparity in your health insurance coverage. If you are leaving or changing your job, leaving your school or college and thriving on your parent’s health insurance plan, or losing your current coverage and weighing your options then at that juncture of time a Short Term health insurance plan can provide you with the best options as well as a good solution right when you require it. The main perk of short-term coverage is its low costs, and the main drawback is its barriers.  In short, if you if you are healthy and don’t qualify for cost assistance through Medicaid, CHIP, or the marketplace, then you may opt for a Short Term health or medical insurance plan.

What is Obama Care?

The healthcare drive of Obama Care is considered to be one of the massive health care reforms identified in the United States of America. The legislation to be treated as one of the most controversial act since the advent of the Social Security Act, the year 1935. In the United States of America, the reform executed under the United States Congress. And the plan with due consideration and guidelines from President Obama gathered momentum and achieved prominence in the healthcare sector of the country. Initially, the name “Obama care” was given or provided by the opponents of Obama and the President later embraced the name as per his opinion the name denoted his care and affection for the people of the country as well as for their health.

The health care reform is accessed by approximately 20 million Americans. The law is considered to be one of the biggest health care reforms of the country and it provides the policyholders with a host of benefits like “ten essential benefits” as stated by the health care law.

The differences between Short Term health insurance & Obamacare.

  1. Pre-existing conditions– The Short term health insurance plans do not cover pre-existing conditions like that of the Obama Care law. In Short Term medical plan a patient with any preexisting condition will have to pay extra.
  2. Guaranteed Issue – While ACA is a guaranteed issue Short-term plans are not. You need to answer a series of medical questions before you can be covered.
  3. Coverage is available year-round– In this scenario, Short Term health insurance is more flexible than ACA plans.  Short Term insurance is available year round. Whereas, for ACA one have to wait for the annual Open Enrolment Period.
  4. Maternity and newborn care—usually, maternity and newborn care are not covered in Short Term plans like ACA.
  5. Terms are limited -Generally with an ACA medical plan as long as you keep paying the premium, you will be able to keep the plan. But with Short Term insurance, you pick the length of time you want to be covered.

Both the Short term and Obama Care plans have their own significance. But as Obama Care has no fixed tenure it provides more benefits to its policy holders.

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