Tuesday, September 3, 2013

What is an exchange (and it's many aliases)?

An exchange is really just a fancy word for a website that shows you all your benefit options in one place, compares plans and price side-by-side, and allows you to enroll online. An exchange should also provide education on Health Reform and help you determine if you qualify for any discounts or programs under the new law.

Think of an exchange like an online supermarket for benefits. You'll browse through low-cost plan options, pick out what you like, and add them to your shopping cart. It makes shopping for benefits simple and easy.

Two types of exchanges


There are two types of exchanges: public and private.

A public exchange is run by the government. Some states set up an exchange and some states did not. For the states who did not, they will use the federal exchange instead. To the consumer, it shouldn't feel any different. You'll still be shopping for the same plans issued by private insurance companies competing for your business.

How the exchange helps


If you do not have access to an affordable health plan through your job, you might qualify for lower premiums and lower out-of-pocket costs by purchasing a health policy through the exchange.

If your household income is less than 400% Federal Poverty Level (for a family of four, that's around $96,000 a year), then you'll qualify for some level of tax subsidy.

An easy way to think of a tax subsidy is like a discount off the cost of your health insurance premium. You might also qualify for lower deductibles and other out-of-pocket expenses.

A private exchange can offer the same plans that a public exchange does, as well as other health insurance choices. A private exchange can also offer products like dental, vision, life and more in addition to health insurance.

No health insurance company can turn you away or charge you extra premium because of pre-exisiting conditions, health history, claims, gender, or industry. Pre-exisiting conditions and pregnancy are always covered.


Plan Choices


You can choose from four plans: Platinum, Gold, Silver or Bronze. You can apply your tax subsidy, or "discount", toward any of those plans. If you are under the age of 30, you have a fifth catastrophic plan choice to keep the costs even lower.

The exchange plans are sold by private insurance companies like BlueCross, United Healthcare, Humana, etc. that are all competing for your business.

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