Health insurance is something you hope to never need, but something you should always have available just in case the unthinkable happens. Everyone gets sick from time to time and a trip to the doctor or hospital in the US can be expensive.
The average trip to the emergency room, for example, will cost a patient a little over $1,000.
This isn’t the kind of money most people have to hand at all times. This is why thinking about health insurance is important for everyone.
With this in mind, this article is going to be comparing Medicaid vs private insurance to see which one might be of the biggest benefit to you. Let’s get into it.
What Is Medicaid?
Medicaid is a type of insurance administered by the government. It’s available to people in the low-income bracket. One in five Americans is covered by this insurance.
It covers a range of costs, from pregnancy care to mental health services to prescription fulfillment. Research reveals Medicaid enrollees tend to have better access to care than the uninsured and are less likely to put off seeking medical care.
What Is Private Insurance?
Private insurance involves taking out a policy yourself with a health insurance provider. In this scenario, you’ll pay a premium each month to your provider and in return, you have access to discounted medical care.
Health insurance is sometimes provided as part of a benefits package from an employer. It’s also possible to seek out your own insurance plan.
Medicaid vs Private Insurance: Pros and Cons
If you’re considering your options in regards to health insurance it’s worth looking at the pros and cons of each avenue. The first and for many most significant factor will be the cost.
With a private insurance plan, you’re going to pay a premium to your provider each month. Whereas if you’re a Medicaid recipient you won’t pay anything. If your work is paying for your insurance, however, this point is moot.
Next, which option has better coverage? This is a difficult question to answer, as different private insurance plans and providers offer different levels of coverage. Medicaid offers a wide range of coverage, however, it’s possible you’ll be able to find a plan that is tailored to your needs more by going the private route.
Finally, access. How accessible is each type of insurance? Each one has its own barriers.
Medicaid, for example, has eligibility criteria. There are federal standards and then state regulations that all need to be met.
When it comes to private insurance, it can be equally tricky to obtain. Paying a private insurance premium each month isn’t something everyone can afford. The cost of private medical insurance can vary greatly.
Can You Have Medicaid and Private Insurance?
The short answer to this question is yes. It may surprise you, but it is possible to be a Medicaid beneficiary and still be on a private insurance plan.
The two often work in tandem with one another to provide the best and more affordable care for you. To learn more about this, check out resources from The Insurance Stuff.
Understand Your Options Today
Health insurance in America is a complex issue, but it’s one that all Americans need to get to grips with.
If you’re looking for more financial advice or comparisons of Medicaid vs private insurance, we’ve got you covered.
Check out more of our blog today!