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January 5th, 2013 - Health Insurance Exchanges Go Online

Health Insurance Exchanges Go Online

The development of state-based health insurance exchanges may be the most interesting thing to watch this year. These virtual marketplaces will allow uninsured people and small businesses to
compare and enroll in health plans online. Through these exchanges will people learn if they qualify for federal tax subsidies to help cover the cost of insurance. According to the law, Exchanges must be up and running by Oct. 1, 2013. Time will tell if this can actually be done on time.

States were given the option to build their own exchanges and had until Dec. 14 to decide. Here is how the States decisions broke down:
•18 States (and the District of Columbia) agreed to build their own.
•7 States have opted for a partnership exchange - a model where the states and federal government work together to operate the marketplace.
•25 States that declined to participate and will therefore have federal government put in place health insurance exchanges.

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