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Health Insurance Exchanges and Business Loans
Under the implementation of Affordable Care Act, each state will have an operating Health Insurance Exchange where individuals, families and small business can purchase standardized health insurance plans. It is probably more helpful to call them marketplaces. Insurance companies can submit plans to be included on each marketplace where consumers can then choose the company and plan most suitable for them.
Implementation of the Exchanges
The mandated State exchanges will be implemented in one of three ways
- The State can opt to operate its own state exchange.
- The State can opt for a Partnership Exchange where the federal government would be responsible for the selling of insurance policies and qualifying consumers for subsidies on the federally run Health Insurance Marketplace. The State in this case would be responsible for regulatory oversight on insurance and would also be in charge of outreach and education of its residents directing them to the Health Insurance Marketplace
- The State defaults to the federally run Health Insurance Marketplace.
Currently 16 States and the District of Columbia are pursuing the development of state exchanges, 7 intend to implement a partnership exchange with the rest defaulting to the federally run Health Insurance Marketplace.
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