Health insurance, in general, can be incredibly complicated. There are regulations to adhere to and guidelines to follow. Serving two masters, health insurance intends to provide for the consumers who need affordable coverage while insurance providers still drive toward revenue-generating ways to offer that coverage. So, how can you make sense of all the ever-changing options out there and know how to decide? You can start by separating health plans into two distinct groups – on-exchange and off-exchange. Here’s what you will likely need to know to help simplify both health plan considerations.
First, Let’s Define What the Exchange Is
A health insurance exchange is any online portal or dashboard that houses information, health plan choices, and enrollment capabilities for browsers. It’s a community where health insurance providers of all sizes come to make their plan offerings available to shopping consumers. And there are two primary types of exchange plans to note. These general and broad-stroked definitions will help you simplify your health insurance browsing options.
The Public Exchange
A public exchange is any exchange sponsored, managed, and run by a government entity or municipality. An example is Healthcare.gov or third-party vendors, offering direct access to those ACA-backed exchanges. It’s within these platforms that individuals can seek health plans governed by the ACA.
The Private Exchange
In a private exchange, the health plans are considered to be on an open market. Thus, individuals can reach out to health insurance providers directly, outside the government monitored environment. Here the insurance plans offered are entirely offered, managed, and governed by private entities or businesses.
Health insurance plans offered in either scenario may have similarities. And insurance providers can offer plans in both arenas. But the key differentiator between an on-exchange and an off-exchange plan is the affordability factor. Those consumers who enroll through the public exchange are potentially eligible for premium tax credits and subsidies that reduce the monthly premium payments. Those government subsidies are not available to private exchange plans. Alternatively, there may be a wider variety of plan options on the open market.
Simplifying ACA Marketplace Health Plans
If browsing the ACA Marketplace is new to you, you might be confused about where to begin. To simplify your on-exchange experience, we’ll break down the basics. Here’s what you will appreciate knowing about exploring health insurance options there before you get started. And anyone who will be looking to the ACA Marketplace for the first time, there’s a lot you’ll want to consider before enrolling.
Who Should Consider an On-Exchange Health Plan?
Anyone who finds themselves without health insurance can explore options on the ACA Exchange. Employees who don’t have traditional employer-sponsored group plans or whose employer is offering an HRA variation can also be eligible for an on-exchange plan. And for those households without coverage, the ACA Marketplace can offer the subsidies and premium tax credits needed to make the health insurance monthly premiums affordable. Participants must also be U.S. citizens with residency here and not be incarcerated to be eligible for ACA coverage options.
Finding Your Way on the ACA Platform
You can visit and browse available plans Healthcare.gov directly or through a participating partner. Before selecting a plan, it’s best to sit down with your household income details and health coverage needs. You can then submit for eligibility regarding any premium tax credits. With your discounts verified, you can browse the available health insurance plans and enroll based on the coverage you need. Any subsidies will already be applied as you enroll. And it’s always best to ask as many questions as you can to help you better understand what each plan covers, charges, and provides before deciding officially.
Understanding What’s Covered
Before selecting a plan, you’ll want to be mindful of the coverage options. For example, plans are separated into metal tiers to help you better visualize the levels of coverage versus premium costs. You’ll also want to pay attention to copays, coinsurance, and deductibles to ensure affordability before enrolling. And it’s best to also verify any in-network or out-of-network provider provisions to make sure your chosen healthcare providers are covered. Browsing with W3LL can help simplify all of these nuances, making it much easier to understand, too.
Simplifying the Off-Exchange Health Plans
If you’re looking to explore your health insurance options off-exchange, there are a few advantages of doing so and benefits for certain types of plans. There are also a few other variations and details to be aware of before officially making your enrollment decision. Some of these considerations can help simplify your shopping efforts.
Who Should Consider an Off-Exchange Health Plan?
Off-exchange health plans are ideal if you’re relatively healthy, young, or interested in other non-ACA-managed plans. Anyone eligible for a catastrophic plan or an ACA exemption may also qualify to seek coverage off the exchange. Temporary health insurance plans or short-term health insurance products can also be purchased off-exchange.
Finding Your Way Off the Exchange
It can be challenging to navigate off-exchange health plans. Ultimately, though, you’ll be able to inquire with the provider directly about questions, premium costs, copays, etc. And some of those more well-known insurance companies and the big-name providers will all have unique engagement platforms and resources to help you determine which plan is right for you and your family.
Understanding What’s Covered
Off-exchange health plans are not required to abide by the same guidelines that on-exchange health plans do. And the providers may choose to deny benefits based on pre-existing conditions, where ACA plans cannot. But it’s good to know that non-Marketplace health insurance plans also cover ten essential benefits. In addition, some may also offer out-of-network provisions and an even broader selection of prescription drug options.
Unraveling the differences between the on-exchange and off-exchange plans can be tedious. But hopefully, these points help simplify your understanding of how plans in either ecosystem work.