What are the health insurance exchanges under the Affordable Care Act (ACA)?

Author: Brian G. Muse, LeClairRyan

Health insurance exchanges, also known as health insurance marketplaces, are central mechanisms created under the ACA through which individuals and small employers with up to 100 employees can purchase health insurance coverage from a menu of plan options. The ACA required each state to set up a health insurance exchange, but some states chose not to. Beginning in 2017, states may allow large employers (employers with more than 100 employees) to begin purchasing coverage through the exchange.