Marketplaces are now known as the “exchanges” under the Affordable Care Act and are required as part of the Act. Each state is required to establish an exchange. Should a state decide not to set up an exchange, the federal government set up a federally-facilitated or federally-operated exchange in those states. In many states, while there is an exchange, it is a federal exchange as opposed to a state-based exchange.
Purpose of the Exchange
Exchanges were created for individuals or small employers to purchase or gain access to health care financing options through a program administered by state and/or federal government. In the individual exchange, the financing options include subsidy, advance premium tax credits, or premium tax credits, along with cost-sharing subsidies to qualified individuals.
The small group exchange, also known as the SHOP exchange, is where a small employer who is eligible for the small business tax credit would be able to receive the credit. The credit is a subsidy available to qualifying small employers.
New hires are sent an email on the date of hire with state exchange options as a part of the ACA.
Thank you for the feedback!