What exactly is a state-based health insurance exchange?
A state-based health insurance exchange will likely operate as an online portal through which consumers can review and compare a variety of private health insurance plans at a glance. This would include comparisons of covered services, premiums, co-pays and deductibles, as well as out-of-pocket limits on expenses. The idea is that long term, the exchange will force insurance companies to be more competitive with their pricing. Will every state have an exchange, and who will run them? According to Sam Gibbs, senior vice president of eHealth.com, which bills itself as the nation’s largest source for individual and small business health insurance, some states will have their own individual health insurance exchanges, while other states with smaller budgets and populations may elect to create a regional exchange that serves the residents of several states. Who runs the program will vary from one exchange to another. “The states are responsible for the exchanges,” Gibbs says, “but the bill
