Many consumers today do not fully understand this question. Here is a quick breakdown so that you can better understand how Marketplace Health Insurance works. Marketplace health insurance in the US is also referred to as health exchanges or simply the Marketplace. The Marketplace refers to the organizations that are mandated by the United States to provide health insurance to citizens. Individuals can purchase specific health insurance that are in compliant with the corresponding Patient Protection and Affordable Care Act (ACA). ACA is popularly known as Obamacare.
The Marketplace provides you with a range of plans that you can select from in line with government regulations and standardization procedures. The Marketplace became fully certified and operational by January 1, 2014. However, enrollment in the health exchanges had started back in October 1, 2013 and remained in effect for six months. By April 19, 2014, a total of 8.02 million people had been enrolled into the program under the facilitation of the health insurance marketplace. The 2015 enrollment was initiated on November 15, 2014 and concluded on December 15, 2014.
What is the significance of Marketplace Health Insurance?
The health insurance marketplace is aimed at expanding insurance coverage for consumers. It is also targeted towards insurers so that they can provide a cost-effective health plan making it easier to comply with both federal and statutory laws on health insurance.
What is Marketplace Health Insurance Coverage?
It is important to note that the exchanges by themselves are not the insurers themselves. By implication, they therefore not bear the risks involved with health insurance. The main role for marketplace health insurance coverage is to determine what best insurance companies should participate in the exchange.
An ideal exchange is mandated to promote the integrity and transparency of the insurance. This, in turn leads to increased enrollment in the various plans thus helping to spread the risk.
When risk is spread over a wide area, it becomes easy to meet the costs that are related with very expensive medical treatments. This works in the best interest of everybody, especially the middle class and the low-income earners who may need these types of services but not able to cater for them with out-of-pocket expenses.
In terms of functionality, the Marketplace uses electronic data interchange (EDI), in the transmission of the required information between the trading partners (carriers) and the exchange. There are 820 transactions for the premium payment and a total of 843 for enrollment information which are facilitated by the EDI.
From the above facts, you can now take a bold step by putting your health and that of your household first. Shop around for a plan that is convenient for you whether on personal, family or business bases.