Beginning in 2014, new Health Insurance Exchanges will be set up giving individuals, and small businesses as well, the option of comparison shopping for health insurance plans. This insurance marketplace will encourage price and quality competition, resulting in more affordable coverage for all.
Benefits of the Health Insurance Exchange
- Consumers will have a variety of plans to choose from
- Plans will have standardized benefit packages (bronze, silver, & gold coverage), making comparison among different carriers easy
- Transparency will allow for individuals to see exactly what certain plans will get them and how much it will cost
- Insurance companies will be required to explain plan details in a way that everyone can understand
How the Exchange Will Improve Health Care
The Health Insurance Exchange will make coverage accessible and affordable to all by offering credits for those with a household income of up to 400% of the poverty level. These credits can be used towards purchasing coverage through the Exchange. The Exchange will not turn down individuals with pre-existing conditions nor will they determine premiums based on an individual’s health status or gender. Also, unlike today’s health insurance market, insurance carriers will be banned from placing an annual or lifetime cap on coverage.
These exchanges will be set up and run by the individual states beginning in 2014.
Loading ...