Health Care Exchange Markets

Health care exchange markets (also referred to as “marketplaces” or “exchanges”) arose out of the Affordable Care Act (ACA) as a way for individuals, families, and small businesses without health insurance to shop for affordable options. Available in every state, the exchanges are governed by individual states, the federal government, or a partnership between the two. Economically, the premise of the exchange is to organize the market for health insurance by connecting small groups of the uninsured into larger insurance pools. This in turn makes health insurance more accessible with premium tax credits and cost-sharing reductions, promotes competition among private insurers, and benefits consumers by ensuring more options for quality and affordable health care.

As with many provisions in the health care law, implementing the exchange ...