HR3590 Health Care Bill & Government Health Insurance

Another provision in the health care reform act is the creation of an “exchange” or marketplace in each state. Just what is an “exchange”, anyway? Simply put, it’s the place where individuals who cannot avail of insurance from their employers find their own health insurance at competitive prices. These said exchanges will only be open by the year 2014. If a state should refuse to open one, the federal government will take over and open one for them.

These exchanges will be the site for individuals and small businesses to be able to get health insurance options that most big companies can negotiate with the providers. They will be able to have choices like that of large employers.  As to how these exchanges would be patterned, it would all depend on how a state would like it to be.

Any government agency or any non-profit organization will be responsible in the operation of the exchange. Initial funding will be provided by the government for these exchanges which will cater to companies with 100 employees or less and to individuals seeking for insurance for themselves, as they are unemployed, self-employed, or already retired but not eligible for Medicare. The exchange will also allow persons or small companies to band together and act as one big corporation that will be able to qualify for insurance offers that only big corporations get to enjoy.