What Is A Health Insurance Exchange? The Patient Protection and Affordable Care Act (PPACA), signed into law in March 2010 created a new mechanism for purchasing coverage called Exchanges, which are entities that will be set up in states and designed to create a more organized and competitive market for health insurance by offering a choice of health plans, establishing common rules regarding the offering and pricing of insurance, and providing information to help consumers better understand the options available to them. Initially Exchanges will serve primarily individuals purchasing insurance on their own and smaller employers; states will have the option of opening Exchanges to larger employers a few years after implementation.

Who will have access to Exchanges?
PPACA requires most individuals to have health insurance beginning in 2014. It authorizes entities known as American Health Benefit Exchanges, which states will establish by January 1, 2014, to make plans available to qualified individuals and employers. PPACA also provides for separate Small Business Health Options Program (SHOP) Exchanges from which small businesses with up to 100 employees can obtain coverage for their employees. Prior to 2016, states can limit Exchanges to businesses with 50 or fewer workers, and, beginning in 2017, states can allow businesses with more than 100 employees to purchase coverage from an Exchange.

What benefits will be offered through the Exchanges?
The qualified plans that participate in the Exchanges will be required to offer a uniform benefits package which would be offered at four levels of value, making comparisons across plans easier.

Conclusion
The Exchanges established by PPACA are designed to be settings in which qualified individuals and families and small businesses can purchase health insurance coverage that meets certain rules relating to affordability, required benefits, and market standards. People who do not have access to employer or public coverage may find choices in the Exchanges, with standardized benefit options designed to make comparisons easier.

For more information please contact a Stratford Representative at 866-217-9053.