One of the centerpieces of the recently passed Patient Protection and Affordable Care Act (PPACA) is the establishment of state based health insurance exchanges by the year 2014.

An “Exchange” is a mechanism for organizing the health insurance marketplace to help consumers and small businesses shop for coverage in a way that permits easy comparison of available plan options based on price, benefits, service and quality. By pooling individuals and small groups together, transaction costs can be reduced and transparency can be increased. Exchanges can create more efficient and competitive markets for individuals and small employers.

Historically, the individual and small group health insurance markets have suffered from adverse selection and high administrative costs, resulting in low value for consumers. “Exchanges” will allow individuals and small businesses to benefit from the pooling of risk, market leverage, and economies of scale that large businesses currently enjoy.

Beginning with an open enrollment period in 2013, Insurance agents and Benefits professionals will help individuals and small employers shop, select, and enroll in high-quality, affordable private health plans in these “Exchanges” to fit their specific needs. Individuals in these “Exchanges” may also be eligible to receive premium subsidies through the Federal or State government. By providing one-stop shopping, we will make purchasing health insurance easier and more understandable through these “Exchanges” and provide the same level
of service that you have become accustomed to.