Co-Founder, TermInsuranceBrokers.com, Goldenzweig Financial Group, Las Vegas, Nevada
A health insurance exchange is a government-run marketplace where people can buy health insurance plans
One of the big questions everyone asks is “what’s the difference between buying a health plan on the exchange and off the exchange?
The key difference is the subsidies. You can only get a subsidy if you’re buying your coverage on an exchange – they cannot be used towards plans purchased off the exchange. An advantage of buying a plan off the exchange is you will generally have more choices available for you to choose from.
The same plan that is offered on the exchange and off the exchange may have some differences as well. Plans that are on the exchange may have more regulations, therefore requiring they feature additional benefits directly through the plan as opposed to needing a separate stand alone policy to provide the supplemental benefit (e.g. vision care, dental care, etc.) – off the exchange plans may not be subject to the same standards.
Off the exchange plans must still meet the requirements of the Affordable Care Act (including offering the 10 essential health benefits).
It’s important to remember than not every plan that is offered off the exchanges will be available on the exchanges. Carriers reserve the right not to offer coverage on the exchanges. Thus, some states may have numerous plan selections for consumers where others may have limited choices. Also, not every type of health insurance plan is available on the exchanges – short term policies and large group policies are not offered on exchanges at this time.
There's a lot of moving parts to health insurance and given the issues that have occurred with the new healthcare system rollout, it's highly recommended you work with an experienced health insurance broker to make sure everything is in good order for your program. Please feel free to contact me for help or if you have any other questions. Thanks very much.
That is a great question! To answer it simply, the exchanges either set up by the State, or by the Affordable care Act ( Obamacare) are an online marketplace where companies can choose to offer health care plans. The are private exchanges also, and they can be very similar, or offer very different plans, as long as they all include the basic requirements. The ACA exchange is good, because it offers help with paying for the policy if you qualify. Thanks for asking!
Owner, Best Health And Car Insurance Rates - Instant Online Quotes, US
Health Insurance Exchanges. How do they work? I'll provide a brief accurate and direct answer.
The Affordable Care Act (Obamacare) created "Marketplaces" so consumers can purchase health insurance without answering medical questions. Pre-existing conditions are covered and a federal subsidy may be available, depending on your income.
How do you get the best rates and enroll? Through an experienced broker.
This question was answered live by: Ed Harris - Health Insurance Broker for the last 33 years and owner of several top-rated websites.
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One of the big questions everyone asks is “what’s the difference between buying a health plan on the exchange and off the exchange?
The key difference is the subsidies. You can only get a subsidy if you’re buying your coverage on an exchange – they cannot be used towards plans purchased off the exchange. An advantage of buying a plan off the exchange is you will generally have more choices available for you to choose from.
The same plan that is offered on the exchange and off the exchange may have some differences as well. Plans that are on the exchange may have more regulations, therefore requiring they feature additional benefits directly through the plan as opposed to needing a separate stand alone policy to provide the supplemental benefit (e.g. vision care, dental care, etc.) – off the exchange plans may not be subject to the same standards.
Off the exchange plans must still meet the requirements of the Affordable Care Act (including offering the 10 essential health benefits).
It’s important to remember than not every plan that is offered off the exchanges will be available on the exchanges. Carriers reserve the right not to offer coverage on the exchanges. Thus, some states may have numerous plan selections for consumers where others may have limited choices. Also, not every type of health insurance plan is available on the exchanges – short term policies and large group policies are not offered on exchanges at this time.
There's a lot of moving parts to health insurance and given the issues that have occurred with the new healthcare system rollout, it's highly recommended you work with an experienced health insurance broker to make sure everything is in good order for your program. Please feel free to contact me for help or if you have any other questions. Thanks very much.
The Affordable Care Act (Obamacare) created "Marketplaces" so consumers can purchase health insurance without answering medical questions. Pre-existing conditions are covered and a federal subsidy may be available, depending on your income.
How do you get the best rates and enroll? Through an experienced broker.
This question was answered live by: Ed Harris - Health Insurance Broker for the last 33 years and owner of several top-rated websites.