1. The Heritage Version of The Health Insurance Exchange
Robert E. Moffit, Ph.D.
Director, Center for Health Care Studies
The Heritage Foundation
April 16, 2007

2. Health Insurance Exchange
A Single Market for Health Insurance. (Simplified Administration)
Purchases by Individuals and Families, Not Employers
Premiums Paid With Pre-Tax Dollars, Just like Employer-Based Insurance. (Section 125 Accounts)
Portability of Coverage

3. The Functions of the Exchange
Prepare descriptions of health plans for employers and employees
Enroll employers and employees
Collect and transmit insurance premiums
Administer subsidies or premium assistance to eligible enrollees
Certify plans as approved by the state insurance department

4. What “The Exchange” is NOT
It is NOT a regulatory agency
It is NOT a purchasing agency
It is NOT a mechanism to standardize health benefits
It is NOT a risk adjustment mechanism
It is NOT a “Regional Alliance” with power to impose price controls or premium caps