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Obamacare Health Insurance Exchange Explained

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					Health Insurance Exchange Explained
Starting in January 1, 2014 every citizen in the United States with the exception of few individuals
will be required to have Health Insurance, or pay a Health Insurance Tax. The individuals that are
not able to afford to purchase health insurance or meet the new standards that are part of
the Medicaid Expansion will be offered subsidies or the chance to enroll in Medicaid based on
their states decision. You can also use our Health Insurance Tax calculator to see if you will
qualify for a subsidy based on your income level.

One major component of Obamacare will be the establishment of Health Insurance exchanges.
These Health Insurance Exchanges will be setup either by the State, or by the federal government.
Open enrollment will open on October 2013, and the benefits and new health insurance plans will
go into effect on January 1, 2014. The concept of having a private marketplace for health
insurance is something that is brand new to the United States. Individuals have always either
gotten Health Insurance as part of their employers benefit package, or have had to dole out a
superfluous amount of money for COBRA. “What is a Health Insurance Exchange?,” and “What
are the guiding principles to create the state exchanges ?”


What is a Health Insurance Exchange?
A Health Insurance Exchange in the case of Obamacare will be a marketplace established to help
individuals, and small businesses shop and compare various health insurance products on the
basis of plan options, costs to employer, and costs to individuals, service, quality and benefits. The
goal of the Health Insurance exchange is to decrease the overall cost of Health Insurance products
by creating a pool of individuals to help reduce the risk and costs associated with Medical and
Healthcare. Creating the Health Insurance Exchange pool also decreases overall transaction costs
and increases market competition resulting in lower costs to the consumers.

Ultimately a Health Insurance Exchange allows its participants or customers to reap the benefits
from the pooled risks, and leverages economy of scales and efficiencies that many large
businesses currently enjoy.

Starting in October 2013 when open enrollment begins, The Health Insurance Exchanges will
help all participants browse, choose, and select, affordable health insurance plans and packages
that fit their health needs and budgets. The Health Insurance Exchanges will also support
individuals that receive subsidies or tax credit from Federal or State health care programs such as
Medicare, Medicaid, and CHIP. The Goal of the Health Insurance Exchange, State run or Federal
run is to provide a one source shopping for all state residents with regards to Health Care Plans.

Health Insurance Exchange Principle Requirements

Health Insurance Exchange Efficiency
According to the HHS Principles and Priorities of exchange establishments; Exchanges must bear
in mind the fees that are charged to three group’s individuals, small businesses, and the federal
government. A working exchange must have the ability to establish rules that will allow fair
competition on price and quality of service. It must have the ability to quickly redesign and
modify its business plans to meet any local market conditions that may impact cost and quality of
service rendered by insurers, agents, and other business partners. The exchange must have the
ability to constantly evolve with the goal of maximizing value for consumers.



Health Insurance Exchange and Adverse Selection.
According to the HHS Principles and Priorities of exchange establishments Successful Exchanges
must have the ability to insure there is a homogenous consumer group within the exchange. The
consumer group must be a random pool of healthy and the less healthy participants. The tax
credits, which can only be accessed through the Exchanges, and insurance reforms required by
the Affordable Care Act will reduce the potential for adverse selection against the
Exchange. States should establish proper controls to have the autonomy to regulate such rules
inside and outside the Exchange to prevent any sort of exclusion or adverse selection of any
participants.

Health Insurance Exchange Streamlined Access.
According to the HHS the government will provide and support the state with funds where
necessary to help establish a streamlined enrollment process, this may include additional support
in verifying tax eligibility and subsidies. This is in effort to ensure that consumers will experience
a seamless access to service for all Health Insurance Exchange Consumers.

Health Insurance Exchange Financial Accountability.
According to the HHS Section 1313 will help provide efficient and non-wasteful cost of
administration of the Health Insurance Exchanges, A Successful Health Insurance exchange
should have the mechanism in place to provide quick and efficient enrollment and minimize
expenses; while implementing policies to prevent waste, fraud and abuse;

Health Insurance Exchanges; Will soon be established throughout the United States. This is
the time to start learning on how these changes will impact your Health Care. Read more here

Ihealthcareupdates.com provides the latest news and updates related to the
Affordable Care Act and its implementation as well as other news updates on health
care related items in the United States. To be informed of the latest news and
updates related to the Affordable care Act please visit Ihealthcareupdates.com

				
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