One component to the Affordable Care Act being instituted as of January 1, 2014 is the addition of healthcare exchanges. Healthcare exchanges will be required throughout the United States and will create a marketplace through which individuals and small business owners can find affordable health care plans.
How Will Healthcare Exchanges Work?
While the details haven’t all been set in stone, a healthcare exchange will provide access to multiple types of insurance products. Individuals will be able to contact a healthcare exchange so they can compare different types of insurance policy to find the best one for them. There will be separate exchanges for individuals seeking insurance and small companies seeking insurance.
How Do Exchanges Improve My Health Plan?
A healthcare exchange requires that insurance companies compete against each other for their clients. This means that insurance companies will be forced to lower their costs and increase the benefits of their policies so they can stay competitive within the market. Healthcare exchanges will also help to assist individuals in choosing the best coverage for their situation.
For more information about individual health insurance and the new individual exchanges contact the experts at Bernardini & Donovan Insurance Services.