Health Insurance Exchange

Health Insurance Exchange

The idea of health insurance exchanges have been around for a long time, but have become much more of a focal point in health insurance, since Obamacare made health insurance exchanges one of the focal points of the affordable care act, the main health insurance reform legislation enacted in the United States.

It is worth just remembering that before the introduction of Obamacare, health insurance plans for health insurance policies were bought on the open market much like many other types of insurance.

One of the main problems that many people faced in buying them, apart from the cost, was the fact that many insurance companies gave very few real details about benefits and costs on their websites, and very few gave people access to specimen policies.

The main drawback of this approach for the consumer was that it was virtually impossible to know the real features of any health insurance plan before buying it.

This also meant that it was almost impossible at times to be able to compare any health insurance plan or policy on a like-for-like basis.

The idea of a health insurance exchange was to try and standardise in some ways the insurance plans available for anyone looking to buy health insurance, and to create an online marketplace where people would be able to access these plans, and compare them on a like-for-like basis.

Health Insurance Exchange

A Health insurance exchange can seem a very attractive idea, because many people are familiar with the notion of a marketplace, especially a marketplace where they are able to view products and compare prices in their own time and in their own way.

Health insurance exchanges have forced health insurance companies to modify or standardise many of their plans, which in the long run should in theory benefit the consumer.

In the short term many people who had certain types of health insurance plans or policies have been scared off the whole idea by some stories of how they will lose these plans.

Health insurance exchanges cannot be distanced from the other healthcare reforms enacted under Obamacare, perhaps the most important being that insurance companies will no longer be able to deny access or impose special costs for people who have what is called a pre-existing condition.

Part of the cost in funding this is meant to be the fact that everyone will be forced to sign up for some type of health insurance, thereby increasing the pool of people available for insurance companies and offsetting the risk element connected to pre-existing conditions.

Time will tell if this works, and if health insurance exchanges do actually grow in the sense of becoming a true marketplace.