An insurance exchange is a marketplace where individuals, families, and small businesses can purchase health insurance. It is designed to make it easier for people to compare and buy health insurance plans that meet their needs and budget.
Insurance exchanges can be set up by states, the federal government, or a partnership between the two. They offer a range of insurance options, including different levels of coverage and premium costs.
Through an insurance exchange, consumers can see a side-by-side comparison of the plans available to them, including the costs of premiums, deductibles, co-pays, and other out-of-pocket expenses. This can help them make informed decisions about their health insurance coverage.
In addition, insurance exchanges may offer subsidies or tax credits to help make coverage more affordable for those who qualify based on their income.