How Are Medicare and Obama Care Related?


Quick Answer

ObamaCare, officially known as the Affordable Care Act, expands and improves Medicare coverage for seniors, improving senior care and closing the so-called Medicare "donut hole," which is a coverage gap that exists between how much Medicare Part D pays for drug coverage and how much needed medications cost. While ObamaCare lays out some changes for the Medicare program, it does not replace Medicare, and Medicare is not an option on the health insurance marketplace within each state. Seniors over age 65 can only get insurance under ObamaCare if they don't have access to Medicare or coverage through an employer, according to ObamaCare Facts.

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Full Answer

The biggest benefit for seniors with Medicare is the closing of the donut hole that formerly prevented seniors from affording their prescriptions, notes ObamaCare Facts. This coverage gap is set to close completely by 2020, with reforms to the coverage limit escalating each year to make drugs more affordable. For example, under the Affordable Care Act, seniors get a discount when buying prescriptions, ranging from 14 percent for generics to 50 percent for brand name drugs. Beginning in 2020, seniors will only pay copayments for drugs without worrying about a cap on prescription drug benefits under Medicare.

In addition, ObamaCare expands Medicare in its existing format for seniors by providing wellness visits and preventive care without a deductible or charging a co-insurance amount.

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