Health Insurance Exchange: Economic Perspective

The Affordable Care Act (ACA) is a significant federal statute, the goal of which is to ensure that all US citizens have equal access to health insurance. A health insurance exchange or marketplace is defined as an area where residents may identify the conditions for having health insurance (Mulligan, 2017). People are able to sign up for private insurance coverage, to access cost-sharing reductions, or to enroll in Medicaid (Mulligan, 2017). In other words, health insurance exchange provision is a possibility for people to choose between their healthcare options.

An exchange is a mechanism that is established by the government. Its primary function is to help customers buy healthcare coverage covering their needs, expected quality, and existing resources. The marketplace aims at determining citizens’ eligibility to pay for their services and receive governmental help. Finally, access to certified healthcare plans is available to people who choose the health insurance exchange. As soon as potential customers identify and compare conditions, they improve their knowledge of health care and understand their options at local and federal perspectives.

From the economic healthcare perspective, the ACA has to promote efficient use of resources that can help to achieve as many positive health outcomes as possible. In this case, health insurance exchanges do not impose on some obligations but underline options for people (Getzen, 2013). On the one hand, it is a good opportunity for people to evaluate their finances and apply them to their health care. On the other hand, national funds are challenged by the impossibility to predict the number of clients and the nature of their concerns. In general, the American obsession with freedom of choice is considered in the ACA and its health insurance exchange.

References

Getzen, T. E. (2013). Health economics and financing (5th ed.). Hoboken, NJ: John Wiley & Sons.

Mulligan, J. (2017). The problem of choice: From the voluntary way to Affordable Care Act health insurance exchanges. Social Science & Medicine, 181, 34–42. Web.

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