Health Insurance Exchanges Essay

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The Patient Protection and Affordable Care Act stipulates that all states must have a health insurance exchange in place by 2014 or the residents of that state will have the option to enroll through a federal health insurance exchange. A health insurance exchange aims to provide competitive prices and transparency to those who are currently unable to afford health care coverage and for some businesses. It is seen as a step towards universal health coverage. [1] A predecessor of the health insurance exchange as outlined but the PPACA is the exchange in Massachusetts, which is entitled the Connector. Connector provides information on name brand health insurance options as well as information on Commonwealth Care, the no or low cost health…show more content…
However this was adjusted to have individual state health insurance exchanges and if one is not put into place by 2014 the residents would still have the option to use the federal health insurance exchange. There was concern that with the smaller health insurance exchanges that there would be smaller risk pools of eligible people for the exchanges and the targeted effect of lower costs would not be obtained. With the individual states owning control of the exchanges there is better connection to the Medicaid options that would be connected to the exchange and the negotiations with the insurance companies could be more effective as well. [1]
When thinking about how one currently attempts to shop for a personal health care plan it is frustrating to jump from website to website, or if one can find a site that compares more than one plan the plans are limited and the companies are few. The FAQ on the health insurance exchange from the White House explains the exchanges as “It is one-stop shopping that will enable you and your family to find a plan that is right for you.” [5] The transparency that each health insurance plan will have
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