What Is the Difference Between On-Exchange and Off-Exchange Policies?
A THCB reader from Colorado writes in:
“I am an individual health insurance purchaser in Colorado. I know I need to buy my policy through the Colorado exchange if I want to get a possible subsidy. I am not likely to be eligible for a subsidy, however, and I found that it’s also possible to buy policies “off” the exchange. I briefly looked at some of those policies and found similar premiums, copays, and deductibles to policies “on” the exchange. I assume the “off-exchange” policies must also be as ACA-compliant as the exchange policies.
Given all these similarities, what is the DIFFERENCE between “on”-exchange and “off”-exchange policies?
In the ACA, what purpose do the two categories serve?”