The PPACA and Health Insurance Exchanges
November 19, 2010
The Patient Protection and Affordable Care Act of 2010 dictates that individual states will establish health insurance exchanges by the year 2012 and have them fully operational by 2014. Simply stated, individuals, couples, families and small businesses will become part of an immense “pool” of health insurance purchasers of similarly-featured private health insurance policies. This should allow the large pool to negotiate and receive considerably lower premium rates for these policies. These government-operated exchanges should also allow for better consumer protection mechanisms, broader transparency and accountability.
Insurance agents will be able to offer access to these state-run health insurance exchanges through their agencies. One of the more important aspects of going through an agency to purchase insurance from a health insurance exchange is the level of information available from a trained and seasoned agent. An agent will allow the consumer or employer a broader set of choices than looking only at a health insurance exchange. While not likely, it’s still possible a standalone or group policy may actually still be less expensive or have broader benefits than a health insurance exchange can offer. This depends on the needs of the individual or group. There will never be a “one size fits all” insurance plan or exchange. The more choices a consumer or group has, the better their insurance will be.
All states and the District of Columbia have received grants for the development of their exchanges. Click here to see the individual grants and what each state plans to do with the funds.
