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October 21, 2017
Open Enrollment is here. And while buying health insurance has gotten easier over the last few years, some of the words and phrases you encounter can make the entire process confusing. I know I get turned off when random health insurance jargon is thrown my way. But once you understand what some of these terms, like “on-exchange” and “off-exchange” mean, then it makes the entire health insurance experience a little bit better.
Health insurance plans that are offered through the Marketplace – a massive online store for health insurance plans that is run by the federal government or state. These plans are required to provide essential health benefits and follow more guidelines as set by the Affordable Care Act (ACA). You usually purchase these plans from either Healthcare.gov or your state’s exchange platform.
With these plans, you may be eligible to receive a government subsidy depending on your household size and income, meaning that your monthly health insurance costs (a.k.a. your premium) might be lower.
Health insurance plans that are offered privately by each health insurance company. These plans also offer most if not all the essential health benefits as their on-exchange counterparts and are usually are a mirror of their on-exchange plans. The names of the plans are often exactly the same as well.
The difference? You won’t buy these plans from Healthcare.gov or your state exchange platform. You also won’t receive a government subsidy or discounts for these plans.
Insider tip: If you purchase an on-exchange plan (a.k.a. Government plan) without receiving a subsidy, you’re essentially buying an off-exchange plan (a.k.a. private plan) with an “on-exchange” label. Then, you’re not receiving the benefits of a government plan at all but going through all the hassle of answering a lot of questions you don’t need to.
Or…..just click below and see every on and off-exchange plan.
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