Why We Need a Health Insurance Exchange

The Affordable Care Act calls for the creation of a competitive health insurance marketplace, called an “exchange,” in every state by 2014. Consumers will greatly benefit from these exchanges. This fact sheet explains how exchanges will improve health coverage in these areas:

• competition
• transparency
• affordability
• accountability
• quality
• assistance

States can design their own exchanges, create regional exchanges with other states, or have the federal government run their exchanges. By planning now, states can customize their exchanges to best meet the needs of their residents and small businesses.