A total of thirteen states (and the District of Columbia), have been working on creating a state-based health insurance exchange. This week, the Obama Administration gave conditional approval to the exchanges of six states. This is excellent news for the uninsured people living in those states.
Part of the Affordable Care Act requires each and every state (and the District of Columbia) to have a health insurance exchange. The exchanges will be used by individuals and small businesses who are uninsured or who are seeking a more affordable health insurance plan. The exchanges will make it clear if a person is eligible for Medicare or Medicaid.
States have three options for their exchange. They can create a state-based exchange. They can create an exchange that is a partnership between the federal government and the state government. They can allow the federal government to create and administrate their state’s exchange.
A total of thirteen states (and the District of Columbia) have decided to create state-based exchanges. This week, the Obama administration gave conditional approval to the health insurance marketplaces that are being set up in six states.
The six states are: Colorado, Connecticut, Maryland, Massachusetts, Oregon and Washington. If your family lives in one of these states it means that you will be able to access a health insurance exchange in order to find affordable health insurance coverage.
The exchanges may become available as early as October of 2013, or as late as January 1, 2014. Beginning in 2014, the federal government will require (most) Americans to have health insurance coverage.
You can keep the plan you have (unless it is an inadequate plan that does not meet federal requirements), or you can use the exchanges to find a better plan. The federal government will offer financial assistance to millions of low-income people who need help paying for health insurance premiums. The exchanges will also help eligible people to sign up for Medicaid.
The deadline for states to tell the federal government which kind of health insurance exchange they would like is December 14, 2012. I would assume that the rest of the states that have been working on creating a state-based exchange would be getting approval for it soon.
States that are unable (or unwilling) to create an exchange will have one created for them by the federal government. People who live in states where the governors are refusing to create a state-based exchange will still have access to a health insurance exchange to help them find affordable health care.
Image by rosmary on Flickr