Medical insurance Exchange is among the major facets of The Patient Protection and the Affordable Care Act. These Exchanges are however not only an on the web platform for insurance plan transactions nor only listing of the insurance companies operating in the state. These Exchanges are governed by certain guidelines, have to mandatorily perform certain functions and should have certain features which is common across the States.
The Exchange will work as an expansive online medical 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 each state should have its Exchange, it has also left for a Regional Exchange that’ll appeal to several states. A regional Exchange will soon be economical and will be able to tap a bigger market, thus ensuring more competitive rates.
Low Cost Insurance:
The Act makes it all compulsory that participating companies will exhibit their cheapest intend on the states. Also, the intense competition between the firms will lead to price war which will ultimately lead to residents accessing policies at probably the most competitive rates. In addition to the price war, the Exchange will also house sponsored health programs like CHIP, Medicaid and Medicaid. So, if your resident wants to purchase the cheapest plan, he won’t have to look beyond the health Exchange.
Not Government Insurance
The Exchange is not just a government insured health program. It’s only an on the web platform, constructed with the us government money and guided by government guidelines, that enables medical insurance company, private or otherwise, to display their products on the Exchange.
Won’t replace company sponsored plans
The Exchanges are not an option to getting coverage at work. Employer sponsored insurance will still remain among the cheapest way to gain access to health insurance medical insurance colorado. In fact, the Exchange may have a special segment for group coverage. Referred to as SHOP (Small Business Health Option Plan), this sub platform is meant for small company firms who’re thinking about purchasing medical insurance for their employees.
Not ways to curb premium rates
The key idea behind creating 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, whilst the residents of Massachusetts have discovered from their experience with the Connector, the Exchange will finish up going the cable TV way, with rising prices and limited choices.