The latest headlines have been full of news about the Supreme Court’s decision to uphold President Obama’s Affordable Care Act. Under this act comes the formation of the health insurance exchange. The average person may not understand the purpose of these exchanges – understanding is the first step to utilizing these services. To put it simply, a health insurance exchange is a set of standardized healthcare plans, regulated by each state and from which you can buy health insurance that is eligible for a federal subsidy. In other words, each state will create an exchange made up of private health insurance policies. The policies will meet minimum coverage standards and be available at an affordable price.
Under federal law, all exchanges must be ready for business by January 1, 2014. These exchanges are meant to make it easier for lower-income individuals and families to purchase quality health insurance at an affordable rate. California has already embraced the Affordable Care Act by creating a Health Benefit Exchange – the first in the nation. California intends to take full advantage of the federal subsidy and fully participate with the program. The state is currently working hard to enroll eligible citizens so that they can purchase their insurance when the exchange officially opens for business in 2014.