States are making progress in implementing health insurance exchanges designed to help keep care affordable for Americans, according to a recent progress report.
Under the Patient Protection and Affordable Care Act (PPACA), states are required to create an exchange by 2014, or the federal government will step in to take a more direct role in their creation. The creation of these exchanges may change the way businesses and individuals shop for insurance.
Colorado is relatively far along in the process, with a Board and executive director already selected to oversee the exchange's development. Other states are generally not as far along, but are making progress in designing their plans and systems. In total, the report indicates 28 states are currently working on their exchanges, with others in preliminary stages.
With many American individuals and businesses struggling to cope with the heavy cost of health insurance coverage, whether provided through employee benefits or an individual policy, proponents believe exchanges will lessen the cost per person. Increased participation should allow health insurers to charge each person less.
Other than mandating the creation and use of Affordable Health Insurance Exchanges, the PPACA also mandated other changes, such as prohibiting insurers from including lifetime caps on their policies.
