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 Key Difference – Obamacare vs Medicare

Obamacare and Medicare are two healthcare insurance programs in the United States. Medicare is a federal health insurance program for people who are 65 or older, some people with disabilities and certain diseases. Obamacare or Affordable Care Act is a health care reform law enacted in March 2010 under the leadership of President of Obama. The key difference between Obamacare and Medicare is that Obamacare aims to provide healthcare insurance for all Americans whereas Medicare aims to provide healthcare coverage for senior citizens, and people who are in need of medical care.

1. Overview and Key Difference
2. What is Obamacare
3. What is Medicare
4. Side by Side Comparison – Obamacare vs Medicare
5. Summary

What is Medicare?

Medicare is a national social insurance program in the United States, which is administered by the US federal government. This program started in 1966 under the leadership of President Lyndon Johnson. Medicare is funded by a payroll tax, general revenue, and premiums and surtaxes from beneficiaries.

Medicare provides health insurance for American citizens above 65 years, who have worked and paid into the system through the payroll tax. Some young people with disabilities are also entitled to Medicare if recommended by Social Security Administration. People with end-stage renal disease and amyotrophic lateral sclerosis are also eligible for this program. Medicare is available regardless of income.

Medicare originally consisted of two parts:

Part A – Hospital Insurance

This includes medically necessary and skilled care and covers most of the hospital-related costs.

Part B – Medical Insurance

This is optional and pays a portion of non-hospital provided medical care (ex: doctor visits, lab tests, walkers, wheelchairs, etc.). A monthly fee should be paid to be eligible for this option; this is also subject to various deductibles.

Medicare program was expanded and further refined in 1999 and 2006, introducing sections C and D, respectively.

Part C – Medicare Advantage

This is like healthcare coverage provided by many private employees. This gives the beneficiary the opportunity to receive all Medicare services (Part A and Part B) from a private medical provider.

Part D – Medicare Drug Coverage

This provides prescription drug coverage to the beneficiaries.

Difference Between Obamacare and Medicare

What is Obamacare?

Obamacare is the unofficial name for Patient Protection and Affordable Care Act, also known as Affordable Care Act. This is a United States federal statute signed into law by President Obama on March 23, 2010.This program aims to provide Americans access to affordable health insurance, improve the quality of health care and insurance, standardize the health insurance industry and reduce the amount of money spent on health care.

Given below is a quick overview of the benefits and protections provided by Obamacare.

  • The introduction of Health Insurance Marketplaces, which allow people to compare different health plans and choose the plans they like. (However, there is such thing as minimum essential coverage which would include new benefits, rights, and protections)
  • Individuals, families and small businesses (having less than 50 employees) are offered cost assistance through tax credits.
  • In 26 states, Medicaid eligibility is expanded to 138% of the federal poverty level.
  • Large businesses must offer full-time employees insurance coverage.
  • The beneficiary will not be denied coverage for any reason, including any pre-existing conditions.
  • The beneficiaries will not be charged more based on their gender or health status.
  • Children can stay on their parent’s plan until 26.

The Individual Mandate, also known as individual shared responsibility provision, requires individuals and families to have at least a minimum coverage; otherwise, they are required to pay a fine.

What is the difference between Obamacare and Medicare?

Obamacare vs Medicare

Obamacare or Affordable Care Act is a plan that helps people to buy insurance. Medicare is a health insurance provided by the government.
All Americans are eligible for Obamacare. Americans who are 65 years or older, people with certain disabilities and people with end-stage renal disease and amyotrophic lateral sclerosis are eligible.
Insurance Provider
The insurance coverage has to be obtained from private companies, but the state may give a credit tax. Medicare is provided by the government.


Obamacare was initiated in 2010 under the leadership of President Obama. Medicare was initiated in 1966 under the leadership of President Lyndon Johnson

Summary – Obamacare vs Medicare

Medicare is a subsidy healthcare program for people over 65 and some disabled groups, which was introduced in 1966. Affordable Care Act, also known as Obamacare or Patient Protection and Affordable Care Act, is a United States federal statute signed into law on 2010. The main aim of this law is to provide Americans affordable access to healthcare coverage. Thus, the difference between Obamacare and Medicare is the section of people target; Medicare targets a specific group in America, i.e., senior and disabled citizens, whereas Obamacare focuses on all Americans.

1.”Who is eligible for Medicare?” N.p., 21 Aug. 2015. Web. 14 Mar. 2017.
2. “Your Medicare Coverage.” – the Official U.S. Government Site for Medicare. N.p., n.d. Web. 14 Mar. 2017.
“3.What is ObamaCare | What is the Affordable Care Act?” Obamacare Facts. N.p., n.d. Web. 14 Mar. 2017.

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