Health insurance Exchange is one of the major aspects of The Patient Protection and the Affordable Care Act. These Exchanges are however not only an on line platform for insurance plan transactions nor merely a listing of the insurance companies operating in the state. These Exchanges are governed by certain guidelines, have to mandatorily perform certain functions and must have certain features that’ll be common across the States.
The Exchange will be an expansive online medical health insurance marketplace where residents can window shop and compare plans and finally obtain a policy that suits their medical needs and financial budget completely.
Although Exchange will soon be funded by federal dollars, it will soon be governed by state authorities. Although health reforms propagate that every state must have its own Exchange, it in addition has left for a Regional Exchange that’ll focus on a small grouping of states. A regional Exchange will soon be economical and will be able to tap a more impressive market, thus ensuring more competitive rates coloradoconnectplans.com.
Low Cost Insurance:
The Act helps it be all compulsory that all participating companies will exhibit their cheapest plan on the states. Also, the intense competition between the firms will lead to price war which will finally lead to residents accessing policies at the most competitive rates. Apart from the price war, the Exchange will also house sponsored health programs like CHIP, Medicaid and Medicaid. So, if a resident wants to buy the cheapest plan, he will not have to check beyond the health Exchange.
Not Government Insurance
The Exchange is not just a government insured health program. It is only an on line platform, constructed with the us government money and guided by government guidelines, which allows medical health insurance company, private or elsewhere, to display their products on the Exchange.
Will not replace company sponsored plans
The Exchanges are not an alternative to getting coverage at work. Employer sponsored insurance will still remain one of the cheapest way to get into health insurance. In fact, the Exchange could have a particular segment for group coverage. Known as SHOP (Small Business Health Option Plan), this sub platform is intended for small business firms who’re looking to purchase medical health insurance for their employees.
Not a way to curb premium rates
The main idea behind setting up an Exchange is to bring in more regulations in the insurance market place. Cheaper health plans are just a by-product of a perfectly built health Exchange. Otherwise, since the residents of Massachusetts have found from their experience with the Connector, the Exchange will finish up going the cable TV way, with rising prices and limited choices.