What are Healthcare Marketplaces?

Over the past few decades, health insurance in the United States has become less affordable for many Americans. The number of uninsured Americans was at 49.9 million in 2010, prompting the Congress to create legislation to find a remedy to make the nation comparable to other industrialized nations.

Health Insurance Exchanges

In 2014, the Affordable Health Care act will institute a system of state-run healthcare exchanges. These marketplaces will allow one-stop shopping for both individuals and businesses to compare plans and receive answers to questions they might have about coverage. It will also provide information on eligibility for credits or programs that can make insurance more affordable. Over half of the states have decided not to run their health insurance exchange due to a number of factors, some political and some financial. Federal health insurance exchange will fill the gap to allow citizens to choose health care plans. Regardless of which type of exchange is used, all Americans will be able to choose their health coverage plans under the new system.

From “Exchanges” To “Marketplace”

In 2013, the Obama administration officials at the Health and Human Services Department began referring to the health insurance “marketplace” instead of “exchanges.” This change was thought to be a response to the reluctance of many Republican governors to set up their own state exchanges. However, the system was always expected to work as a health insurance marketplace where citizens could shop easily for healthcare coverage, and the change most likely reflects a desire to begin to make the system user-friendly for Americans. Although political pressure continues to hound the new healthcare measures, the bulk of the plan will go into effect in 2014. As with all large changes in government programs, many people expect considerable confusion until Americans become accustomed to the new system.