re: #146 calochortus

The health exchange is a new private marketplace where individuals can get insurance through private insurers. That means that the govt set this up so private insurance companies like Anthem, Aetna, Humana, or Blue Cross, can market their policies to individuals.

The insurance companies get the full amount they request for the policy. The govt subsidizes those who meet the income qualifications, giving the insurer the balance of what the policy would be worth.

Example:

Person seeks policy from Aetna. They’re quoted 400 a month. Meeting the govt income level, the government subsidizes that policy down to $100.

The individual pays $100, the government pays $300, and the insurer collects the $400.

All the federal government did was set up the new market and indicate the new minimum level policies that could be marketed nationally (which is what states had been doing all along). The individual mandate is the corollary. Make sure people sign up and take personal responsibility for their actions if they don’t.