Today millions of Americans do not have health insurance, and not necessarily by choice. Historically, many people simply haven’t been able to afford coverage or have been turned down because of preexisting conditions

1. Health Insurance Exchanges: An Overview for Consumers
An October 2013 Gallup survey found that 71 percent of those polled are somewhat, very or
totally unfamiliar with the health insurance exchanges launched to help Americans to purchase
insurance as part of the healthcare mandate under the Affordable Care Act (ACA). In order for
the ACA to meet its goal of getting seven million people insured by spring 2014, consumer
education will need to be ramped up.
Here we provide an overview of health insurance exchanges—how they work and the purported
benefits of purchasing coverage through the exchanges.
What is the Health Insurance Marketplace?
Today millions of Americans do not have health insurance, and not necessarily by choice.
Historically, many people simply haven’t been able to afford coverage or have been turned
down because of preexisting conditions. This reality has come at a considerable cost to
taxpayers, who ultimately foot the bill in the form of higher insurance rates and medical costs to
compensate for those who can’t pay their medical expenses.
The Affordable Care Act (ACA) aims to reduce the number of uninsured Americans by making
insurance more affordable and accessible. Under the ACA a person cannot be denied coverage
because of preexisting conditions or income level. However, the law also mandates that most
Americans obtain health insurance by January 1, 2014 or pay a penalty. The ACA established
an insurance marketplace with state and federal health insurance exchanges through which
individuals can compare and purchase plans.
California is an example of one of 16 states that established a state-run exchange. Individuals
in California who do not have affordable employer-sponsored health insurance or do not qualify
for Medicaid, Medical, or Medicare could potentially obtain affordable coverage through the
state-run exchange.

2. Subsidies to Help Pay for Coverage
The Obama administration (responsible for the development of the ACA, also known as
“Obamacare”) recognized that passing a law requiring that most Americans have health
insurance would also require providing individuals who need it with financial assistance to
obtain coverage. The law provides for such assistance in the form of subsidies. Individuals
earning less $46,000 or a family of four earning less than $94,200 may qualify for subsidies
under the new law.
Tiered Plan System
The health insurance plans available through the marketplace are standardized in a tiered
system that includes bronze, silver, gold and platinum-level plans. The higher the value of the
metal (e.g. platinum) the greater the premium, but the more the plan covers. Conversely, lower
valued metal plans (e.g. silver) cost less but also cover less.
Although the federal exchange has gotten off to a rocky start, the goal is that in the coming
months and years millions of adults and children in America who otherwise may not have been
able to afford health insurance will be covered.
About Coverage California
Coverage California is an exchange certified agency specially trained on the complexities of the
Affordable Care Act. Unlike state insurance navigators employed to deal exclusively with
California’s exchange, our agents provide unbiased information and advice on finding the most
comprehensive and affordable plan, whether inside or outside the exchange. We work with
some of the most reputable carriers in the state including Blue Shield of California, Anthem Blue
Cross and Tonik. Call us today for more information at 1-800-356-3615 or visit our website.