Health insurance exchange

A health insurance exchange is an organized market for the purchase of health insurance in place as a government entity or quasi-governmental organizations to assist insurers in complying with consumer protection, competition profitably, and facilitate the expansion of insurance coverage to more people. The exchanges do not risk themselves - they are not insurers. Instead they would contract with private insurers, and possibly offer a public plan option to meet the specified populations (such as to obtain coverage through employers in small and those without employer coverage ).

Ideally, an exchange to promote transparency and accountability of insurance, to facilitate the registration and provision of grants, while playing a role in the spread of risks (for example, ensure that the costs associated with those have an important medical need are widely disseminated) and controlling costs. [1] However, with too limited eligibility and market share too small, it could raise contributions, to encourage "cherry picking" of customers, and force a release from the exchange. This is what happened in Texas and California in their trade failed [2].

Some experts believe that trade policy may make markets more efficient, provide supervision and structure, because the current health insurance markets are not well organized and must cope with large variations in coverage and requirements of different businesses, employers and policy [3].

At the date of enactment of the Patient Protection and Affordable Care Act of 2010, only a few exchanges of health insurance across the country have been in service. Among them, the connector of Massachusetts, Utah Health Exchange, and HealthPass [1], one based in New York, the nonprofit trade.
Barack Obama's Plan

President Barack Obama to promote the concept of a health insurance exchange as a key component of its initiative to reform health. Obama said he should be "... a market where Americans can stop for a health care plan, to compare benefits and prices and choose the plan that works best for them, the same way that members of Congress and their families can. None of these plans would deny coverage based on a preexisting condition, and all these plans should include a basic benefit package that includes affordable prevention and protection against catastrophic costs. I firmly believe that Americans should have the option of operating a public insurance option alongside private plans. This will give them a better range of choices, make the health care market more competitive and to keep insurance companies honest. [4] However, the option of health insurance was finally removed from the reform legislation before it is adopted, and insurance sold on markets in health insurance will be private insurers.