What Does the Health Exchange Have in Store for the Uninsured?

The federal health reforms make it compulsory for the every resident to have a health plan. It also makes it mandatory for each state to have its own health benefit Exchange which will serve as an online insurance marketplace. So how will these health Exchanges help these uninsured residents to access medical coverage?

For long, finding affordable and suitable health plans has been the biggest headache for the residents. This is where a regulated marketplace comes to rescue. Not only are the cheapest plans available on the exchange, but 80% of the premium dollars on each plan is spent on facilitating healthcare. The Exchange is also home to all the government sponsored policies as well. A quote comparison across plans and companies ensures that the residents have access to the most affordable medical policy.

The health Exchange is also the best place to find the most authentic information about plans, insurance companies, eligibility, navigators and even the Exchange. Most often, people are unaware that they are eligible for government sponsored coverage and end up buying private and costly health plans. But when a resident accesses the Exchange, he is immediately informed about his eligibility and if interested, he can purchase the subsidized plan.

For those who do not have access to the internet, it is the responsibility of the health Exchange to provide information to these residents through other means. Hence, those residents who previously could not purchase health policies due to lack of awareness and information, the health Exchange will prove to be a one-stop shop where they can access information, compare plans and finally purchase that suits their medical and financial needs.

A large percentage of the uninsured population is residents with pre-existing medical conditions. Earlier health insurance companies used to either deny the applications of these residents or charge them huge and unaffordable premiums. But with the new federal health reforms getting enforced in the Exchange, neither will these residents denied coverage nor will they have to purchase hugely expensive plans. The Exchange will ensure that people with pre-existing medical conditions have access to affordable health plans and thus will bring a large number of people under the umbrella of medical coverage.

In the current scenario, most residents access coverage at work. This is a huge drawback as residents tend to lose coverage when they lose their jobs. Though such residents are uninsured only temporarily, they contribute significantly to the uninsured population. However, the Exchange will delink coverage from employment, ensuring that residents have access to medical care even when they are between jobs.

The health Exchange is a state based online market place that is expected to bring in more regulations to the health insurance sector. However, its biggest beneficiaries will be the uninsured population who will now have access to cheap and affordable health plans right at their doorsteps.

Shaun Mike is an expert on health insurance Solutions and is currently studying about the intricacies of the state health exchange that are to be formed soon.