Beginning in 2014, the state health insurance exchanges have the
potential to become one of the most significant industry changes
under the Patient Protection and Affordable Care Act (PPACA).
Conversely, there also is the possibility that the lack of
participation by both insurance providers and participants could
undermine these marketplaces, making this part of health care
reform nearly moot shortly after implementation. This update, the
second in a series, looks at the specific requirements for the
state exchanges, how PPACA encourages their use, and, finally, what
insurers should consider when preparing for implementation of the
exchanges.
Exchanges
Exchange Basics
Under PPACA, each state must establish, as a governmental agency
or nonprofit entity, an American Health Benefit Exchange (Exchange)
that facilitates the purchase of qualified health plans. The
Exchanges also must provide for the establishment of a Small
Business Health Options Program to assist
