Affordable Health Insurance

Health Exchanges for Affordable Health Insurance

May 27th, 2011

State-run health exchanges are a product of The Patient Protection and Affordable Care Act. The premise in establishing these state-run health exchanges is to permit individuals, small business owners, and others to purchase an affordable health insurance policy at a rate that is more affordable than through the traditional channels. There will be instituted a method for citizens to purchase an insurance policy similar to how employers of large corporations are able.

This new method is calculated to entice many citizens and independent entrepreneurs who otherwise would not be able to afford health and insurance. Any time you are able to purchase a self employed health insurance policy through a group setting the cost begins to reduce. This is because the insurance provider is able to calculate a formula that will be based on the quantity of enrollees. After all, insurance providers are a business and do have monthly costs they must contend with in order to remain open for business.

Each state will contain competitive rates for various health insurance plans that will satisfy all the citizens who decide to participate. Keep in mind this will all be under the guise of The Patient Protection and Affordable Care Act, which is a form of affordable health insurance. What does this mean to the average citizen? It will mean the beginning of rationed care so that every citizen is afforded the same insurance coverage to offer assistance for medical advice and treatment.

Each state will be receiving federal funding to initiate the state insurance exchanges in the beginning. Each state is currently being placed under a time constraint to have the state insurance exchanges available to the citizens by January 2014. Those state who decide not to comply or require more time will be receiving penalty fees for non-compliance.
The state insurance exchanges will be open to those individuals who are not able to purchase a self employed health insurance either on their own or through a current employer. There will also be a few small businesses that will attempt to participate in this program, but they are required to have fewer than one hundred employees including the owner.

Though many citizens and small business owners are not happy with the new united health care system that is being introduced into this country, they must comply for the time being. What is not clear is why the states must offer a variety of insurance policies when all citizens will be covered equally.