INSURANCE POOLS BY STATE HEALTH INSURANCE EXCHANGES (HIX)

HEALTH INSURANCE EXCHANGES Required for 2014 in every state and U.S. territory Affordable Care Act 2010 Administered by State Alone Federal Alone Combination of State and Federal To Date 18 states and District of Colombia are electing to do it alone 26 states are choosing the Federal Exchange 7 states are choosing a combination

EXCHANGES & POLICIES Government Regulated Standardized health care plans Must provide basic coverage Eligible for Government Subsidies Low income individuals can select plan and part of cost paid by Federal Government Guaranteed Issue Must be available to all and cannot exclude based on pre- existing condition Exchange must be Government Certified Exchanges do not offer policies themselves but regulate which companies can offer policies through the Exchange

EXCHANGES & POLICIES What Exactly Does an Exchange Do? Allows individuals and small businesses to shop and compare different private health care offerings Provide information on the various plans and their coverage options, subsidies available Market place for private insurance companies to list their insurance coverage and prices Intent is to provide lower cost for individuals and small business by providing a competitive market place What do you do? If you need insurance or are a small business providing insurance, compare and sign-up for policies

EXCHANGES & POLICIES Key Features of the Law (Exchanges) Plans must supply Summary of Benefits and Costs (SBC) Glossary of terms standardized Examples of how coverage works for Type 2 Diabetes or delivery of a baby Federal Support of Consumer Assistance Programs Rules for appeal of a claim denial and requirements of the policy issuer Free access to preventive care (detailed on next slide) Patients Bill of Rights From right to choose doctor to eliminating exclusion for pre- existing conditions to review of premium increases

EXCHANGES & POLICIES Preventive Care Free Access for Blood pressure, diabetes and cholesterol tests Cancer screenings for mammograms and colonoscopies Programs for quitting smoking, weight loss, healthy eating, alcohol dependency, and treating depression Well baby and Well child visits Routine vaccinations Measles Polio Meningitis Flu Healthy pregnancies (counseling, screenings, vaccinations)

EXCHANGES & POLICIES About the Plans Four levels (Bronze, Silver, Gold, Platinum) Bronze – cheapest and most basic coverage Platinum – Highest cost with greatest coverage 80/20 Rule Only 20% of your premium can be for administrative costs 80% must be spent on actual coverage of patients (in pool) Pricing Variations Smokers can be charged 1.5 times higher Age differences up to 3.0 times higher Premium plans cannot exceed 4.5 times the lowest cost plan Some variations within state regions and family composition

EXCHANGES & POLICIES What is coming in 2014? Fully operational exchanges in all fifty states, District of Columbia and U.S. territories Tax credits for families making between 100% and 400% of the federal poverty level for policy purchases with about 9 out of 10 policy holders in exchanges receiving some type of subsidy Tax penalties for not getting insurance coverage 12 million Americans purchasing insurance through the health insurance exchanges growing to 29 million by 2021 QUESTIONS?