How Active Should Exchange Be in Defining Market?

When California first envisioned its reform-inspired health insurance exchange, state officials had three basic options in designing the exchange:

As a market definer and organizer, in which the exchange becomes the market;
As a purchaser, in which the exchange selectively contracts with insurers; or
As a clearinghouse in which the exchange acts as a platform for all plans offered by all issuers.

California chose the middle path, creating an exchange that will act as a discerning patron of plans.

At its meeting this month, the exchange board will consider some of the details about how to define that discernment.

A new issue brief from the Pacific Business Group on Health urges exchange board members to play an active role in promoting the quality and affordability of health care in California. Rather than acting as a passive online clearinghouse with a variety of plan options, PBGH urges the exchange to establish quality standards for plans and useful tools to help consumers pick the plan that is right for them.

In essence, PBGH is urging the exchange, as it navigates the middle road, to lean more toward the first option as market definer and organizer.

We asked stakeholders how the exchange should steer down this path.

We received contributions from:

KFF Health News is a national newsroom that produces in-depth journalism about health issues and is one of the core operating programs at KFF—an independent source of health policy research, polling, and journalism. Learn more about KFF.

<h1>How Active Should Exchange Be in Defining Market?</h1>
<div>		<time class="posted-on" datetime="2012-07-16T00:00:00-07:00">
			July 16, 2012		</time>
		</div>
<p>When California first envisioned its reform-inspired health insurance exchange, state officials had three basic options in designing the exchange: </p><ul><li>As a market definer and organizer, in which the exchange becomes the market; </li><li>As a purchaser, in which the exchange selectively contracts with insurers; or </li><li>As a clearinghouse in which the exchange acts as a platform for all plans offered by all issuers.</li></ul><p>California chose the middle path, creating an exchange that will act as a discerning patron of plans.</p><p>At its meeting this month, the exchange board will consider some of the details about how to define that discernment.</p><p>A <a href="http://www.pbgh.org/">new issue brief</a> from the Pacific Business Group on Health urges exchange board members to play an active role in promoting the quality and affordability of health care in California. Rather than acting as a passive online clearinghouse with a variety of plan options, PBGH urges the exchange to establish quality standards for plans and useful tools to help consumers pick the plan that is right for them.</p><p>In essence, PBGH is urging the exchange, as it navigates the middle road, to lean more toward the first option as market definer and organizer.</p><p>We asked stakeholders how the exchange should steer down this path.</p><p>We received contributions from:</p><ul><li><a href="https://californiahealthline.org/news/how-active-should-exchange-be-in-defining-market/?share=facebook">				Click to share on Facebook (Opens in new window)				Facebook			</a></li><li><a href="https://californiahealthline.org/news/how-active-should-exchange-be-in-defining-market/?share=linkedin">				Click to share on LinkedIn (Opens in new window)				LinkedIn			</a></li><li><a href="https://californiahealthline.org/news/how-active-should-exchange-be-in-defining-market/?share=x">				Click to share on X (Opens in new window)				X			</a></li><li><a href="mailto:?subject=%5BShared%20Post%5D%20How%20Active%20Should%20Exchange%20Be%20in%20Defining%20Market%3F&body=https%3A%2F%2Fcaliforniahealthline.org%2Fnews%2Fhow-active-should-exchange-be-in-defining-market%2F&share=email">				Click to email a link to a friend (Opens in new window)				Email			</a></li><li><a href="https://californiahealthline.org/news/how-active-should-exchange-be-in-defining-market/#print?share=print">				Click to print (Opens in new window)				Print			</a></li><li>				<a href="https://californiahealthline.org/news/how-active-should-exchange-be-in-defining-market/view/republish/">					Republish This Story				</a>			</li></ul><em><a href="https://kffhealthnews.org/about-us">KFF Health News</a> is a national newsroom that produces in-depth journalism about health issues and is one of the core operating programs at KFF—an independent source of health policy research, polling, and journalism. Learn more about <a href="https://www.kff.org/about-us">KFF</a>.</em><p><a href="https://californiahealthline.org/morning-briefing/">Subscribe</a> to KFF Health News' free Morning Briefing.</p>

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