On or Off Exchange – What’s the Difference?
The names Marketplace and Exchange are interchangeable. They mean the same thing. To keep things simple we use the term Exchange.
- Insurance Companies offer some plans only ON Exchange and some plans only OFF Exchange.
- Usually the plans available On the Exchange are more limited, like HMO’s.
- Some plans will be available both On and Off Exchange, in that case – they will be priced the same. There is no price advantage for the same plan either On or Off Exchange.
The primary reason people with low to moderate incomes enroll through the Exchange is to get the government Subsidy to help pay for their Health Insurance. These subsidies can be substantial. We include Subsidy Optimization with our Advisory Service.
A qualified Health Insurance Broker represents all plans, both On and Off Exchange.
The broker should help the client determine which is best for their situation and be able to enroll either On or Off Exchange.