A Brief Explanation of Insurance Exchanges

doctors office You have probably heard news that says that your state will have its own insurance exchange, which will be set up by 2014. How much do you really understand about what a health insurance exchange is, or how it will work? State Farm has a brief explanation, that is simple to understand.

One of the things that I like about State Farm is that it actually provides answers to your questions about insurance. They have a “Learning Center” set up on their website. People can browse through it in order to learn more about different kinds of insurance, to get tips about safety, or to find better ways to handle their finances.

State Farm has put together a brief explanation to help people understand more about the health insurance exchanges. It is written in simple language, and is much easier to navigate than the pages of information located at HealthCare.gov is. State Farm does provide a link to HealthCare.gov, right on the State Farm page about insurance exchanges, just in case you would like to go over there and read more about it.

The term “Health Insurance Exchange” can be abbreviated as “HIX”. That can be confusing, because those letters don’t exactly match up to the words that they are abbreviating. State Farm makes this a whole lot clearer.

The health insurance exchanges are part of the Patient Protection and Affordable Care Act, which is abbreviated as “PPACA”. I find it helpful to have that all spelled out, because this particular Act has been called by many different names. I’ve heard it called “Affordable Care Act”, or “Patient Protection Act”, or “Obamacare”. I have seen the abbreviation “ACA” before, but not “PPACA”.

State Farm answers some of the most common questions that people have about the insurance exchanges. What are exchanges? Who will offer the exchanges? What are the advantages? It is all answered in brief, simple, responses. The information about the advantages that health insurance exchanges can bring consumers comes from The Department of Health and Human Services.

I like that State Farm has put together this informational sheet about insurance exchanges. It can be difficult for people to get a good understanding about things that are brand new ideas, that they are unfamiliar with. It also isn’t easy to grasp concepts that a person has not yet experienced personally. The exchanges won’t be ready until 2014, so that means that no one has actually gotten the opportunity to use them yet.

Image by Jennifer Morrow on Flickr

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About Jen Thorpe

I have a B.S. in Education and am a former teacher and day care worker. I started working as a freelance writer in 2010 and have written for many topics here at Families.com.