Buying insurance can seem like a daunting task. With all of the options available to you, it can be difficult to choose. It can be especially difficult to decide between an on-exchange and off-exchange policy. This article will examine some of the differences between the plans in order to help you make a better decision for you and your family.
On-Exchange VS Off-Exchange Policies: Pricing
Usually, off-exchange policies are slightly more expensive than on-exchange policies. On average an off-exchange policy is approximately $25 more expensive per month. Also, deductibles tend to be slightly higher for off-network plans. The additional cost does provide some additional benefits including a larger network of doctors.
On-Exchange VS Off-Exchange Policies: Provider Networks
The difference in pricing is usually due to the fact that off-exchange policies are PPO insurance plans. A PPO insurance plan allows you to see any doctor you want. Many of the on-exchange policies are HMOs. HMOs make you use an “in network” doctor. This means that your insurance company determines what doctors you can seek treatment from. If cost is a bigger factor for you than the ability to see the doctor of your choosing than an on-exchange policy may be for you.
On-Exchange VS Off-Exchange Policies: Subsidies
One big difference between on-exchange and off-exchange policies are the government subsidies for low-income individuals. Off-exchange policies do not qualify for subsidies. Therefore, the government will not pay for part of your individual plan unless you purchase it through the exchange. If you think you will qualify for a government subsidy based on your income then it is probably wise to find an insurance policy that is on the exchange.
On-Exchange VS Off-Exchange Policies: Certification
On-exchange policies are required to receive a qualified health plan certification. The requirements for QHP certification vary from state to state. While off-exchange insurance policies are not required to meet these same standards, they must meet basic guidelines set by the Affordable Care Act. Therefore, while the requirements may not be identical, all insurance plans will cover the same services.
Family First Can Help
Whether you are looking for a policy that is on the state health exchange or an individual plan directly from an insurance company we can help. Our agents will help you determine what type of insurance plan is best for you. We can help you find the right plan that will cover you and your family without breaking the bank. Contact us today and let us help you find the best plan for you.