The plan creates a Health Insurance Exchange to develop a transparent market for quality health insurance that guarantees access for all Americans. The Exchange would communicate information about the cost and quality of health care options available to individuals and small businesses. It would allow Americans to shop for health insurance that meets quality standards. The exchange will only offer health care options that are comprehensive, non-discriminatory and meet certain quality standards. The funding model for the exchange will mirror that of Massachusetts’ Commonwealth Connector program, placing a small tax on premium payments.
The Massachusetts HC plan creates the Commonwealth Health Insurance Connector (CHIC). CHIC seeks to create an efficient market structure for health insurance that connects “small businesses and [employed] individuals with health care products” that meet their needs. Insurance options available through the connector must be portable and meet a high quality standard. The exchange is funded with a small tax on premium payments.
The Obama Plan creates a National Health Insurance Exchange (NHIE) in order to increase the transparency of available health care options. The NHIE would be a regulated market for individuals and small businesses to purchase health care plans that meet specific criteria for quality, comprehensiveness and portability. The NHIE will feature public as well as private options. Purchasing through the NHIE is meant to be simple, easy and flexible.