What Is Health Insurance Exchange?

A health insurance exchange is a market that allows individuals to shop for health insurance with many different insurance carriers. This type of market does not endorse one particular insurer over the other. Instead, it is a non-biased place where individuals can shop for health insurance. It is similar to a mall, except it is for health insurance.

Organized Information

At a health insurance exchange, individuals can easily compare the different features that are available with each type of insurance plan. For example, they can look at the different deductibles, co-pays, co-insurance, and prescription plans that are available. They can also look for plans that have medical facilities in their area. 

The idea of health insurance exchanges was part of the Health Care Reform bill passed under President Barack Obama. Obama promoted health insurance exchanges as a good way for people to shop for health insurance and find the best deal for their families and businesses. The hope is that insurance companies will be more transparent and open upfront with customers. When they have to compete with each other on level ground, it gives them more of an incentive to be honest with customers and do what they can to bring in customers. 

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