Fundamental Regions of Health Insurance Trade.

Medical health insurance Exchange is one of the major facets of The Patient Protection and the Affordable Care Act. These Exchanges are however not just an on line 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 must have certain features that will be common throughout the States.

Shopping Arena:
The Exchange will function as an expansive online 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.

State Owned:
Although the Exchange will soon be funded by federal dollars, it will soon be governed by state authorities. Although the health reforms propagate that all state must have a unique Exchange, it has also left for a Regional Exchange that’ll appeal to a group of states. A regional Exchange will soon be economical and will be able to tap a larger market, thus ensuring more competitive rates¬†

Low Cost Insurance:
The Act makes it all compulsory that all participating companies will exhibit their cheapest intend on the states. Also, the intense competition between the businesses will result in price war which will finally result in residents accessing policies at the most competitive rates. Independent of the price war, the Exchange may also house sponsored health programs like CHIP, Medicaid and Medicaid. So, if your resident wants to get the lowest priced plan, he won’t have to check beyond the Exchange.

Not Government Insurance
The Exchange is not a government insured health program. It is only an on line platform, designed with the us government money and guided by government guidelines, that enables health insurance company, private or otherwise, to show 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 one of the cheapest way to gain access to health insurance. In fact, the Exchange will have a unique segment for group coverage. Called SHOP (Small Business Health Option Plan), this sub platform is supposed for business firms that are thinking about purchasing health insurance with respect to their employees.

Not a method to curb premium rates
The key idea behind establishing an Exchange is to bring in more regulations in the insurance market place. Cheaper health plans are only a by-product of a perfectly built health Exchange. Otherwise, because 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.

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