What Are Health Exchanges?
Health exchanges are entities intended to give more people access to health care coverage. Exchanges are “marketplaces” that:
- Offer a choice of health plans
- Establish common rules for offering and pricing plans
- Equip consumers with information to better understand available options
- Make coverage portable when switching jobs
Exchanges allow individuals and smaller employers to pool together and “share” coverage. Rather than being locked out of coverage due to health problems, individuals and employees of smaller employers become a defacto large group. Participants gain access to quality insurance at rates comparable to those enjoyed by large groups rather than being priced out of coverage.
Participants are protected from being denied coverage due to pre-existing conditions and from higher premiums or cancellations if they get sick.
The health care reform bill (The Patient Protection and Affordable Care Act [PPACA]) signed into law in March 2010, requires each state establish a health exchange or participate in a multistate exchange by Jan. 1, 2014.
HealthEquity and Health Exchanges
The State of Utah launched the country’s first small group health exchange on Jan. 1, 2010, and chose HealthEquity as one of its primary partners. HealthEquity collects payments from participating employers and pays premiums to participating carriers, vendors, and brokers. HealthEquity also provides healthcare financial services by administering health savings accounts (HSAs) for those who sign up for qualified plans under the Utah Health Exchange.
Learn more about what the Utah Health Exchange is.
Visit the Utah Health Exchange web site.