Higher Fees Ahead for Insurers in States With Federal Exchanges

health care for insurers

On January 1, 2014, Americans will have access to health insurance through the state exchange program, as directed under the Affordable Care Act. Each state was given the choice of developing an exchange option: state-based, federal, or a partnership.


In December 2012, states confirmed their plans:

  • 19 opted for a state-based exchange
  • 7 selected a partnership exchange
  • 25 defaulted to the federal exchange

According to government regulations, insurance companies selling plans within the federal exchange will be charged a fee equivalent to 3.5 percent of their premiums, which will be passed onto customers.


Read more about the state health exchanges at these links:

State Decisions For Creating Health Insurance Exchanges in 2014

Insurers to Pay Fees in States Rejecting U.S. Health Law


Do you understand how health care reform impacts you? Where are you finding the best information?