Are Subsidies Available Through Private Exchanges?

[lmspeir]

So, what is the truth? Are federal subsidies available if a person buys the health policy through a private exchange?

There seems to continue to be two opinions - the private exchange guys say "yes" and some of the carriers continue to say "no". Obviously these answers are mutually exclusive. And, one side is going to look really stupid (or worse).

So, is there a real answer today? Or, is everyone waiting to hear from HHS or other regulator?

Thanks for the help.

 

[taterpeeler]

So, what is the truth? Are federal subsidies available if a person buys the health policy through a private exchange?

There seems to continue to be two opinions - the private exchange guys say "yes" and some of the carriers continue to say "no". Obviously these answers are mutually exclusive. And, one side is going to look really stupid (or worse).

So, is there a real answer today? Or, is everyone waiting to hear from HHS or other regulator?

Thanks for the help.

subsidies are allowed in the federal marketplace only. known as the FFE.... the "private market" or "off exchange" will have NO subsidies however all plans MUST meet all of the ACA requirements.

there is no additional guidance from HHS on this matter.

lastly, what do you mean by "private exchange"? Norvax/ Quoit? if so, yes there are indications that they will be "linked" up with the FFE however they will also provide quotes on off exchange plans

 

[timsip]

The answer is kind of both. Subsidies are only available on the public exchange. With that said, web brokers (these are a sort of private exchange) must offer all plans on the public exchange so in essence you can enter a private exchange but be redirected to the public exchange to purchase a health plan and in doing so can be eligible for a subsidy.

Either way, the only time a person can receive a subsidy is when they purchase an on-exchange plan.

 

[taterpeeler]

me and t-sip said the same thing...

 

[timsip]

me and t-sip said the same thing...

....but different. Must be an Iowa/Texas thing....How did I get beat to the punch by a Southern boy?

 

[RayNY]

For clarity:

Subsidies are ONLY available ON EXCHANGE

HOWEVER, qualified "web brokers" may facilitate an on-exchange enrollment through their web-portal.

To a consumer, it will appear that they have visited "rayshealthexchange.com", got quoted, got a subsidy, and signed up. In the background, they really just signed up on-exchange via a different website.

http://www.cms.gov/CCIIO/Resources/Regulations-and-Guidance/Downloads/agent-broker-5-1-2013.pdf Page 9.

"After the consumer selects a QHP and the APTC amount has been determined, the web-broker will transmit the individual or family’s QHP selection, including the applicable premium, APTC amount that will be applied to the premium, and broker identifier, back to the Marketplace."

 

[taterpeeler]

me t-sip and ray all said the same thing... anyone else?

 

[AllenChicago]

me t-sip and ray all said the same thing... anyone else?

Subsidies are available via the Private Mercantile Exchange.

 

[taterpeeler]

Subsidies are available via the Private Mercantile Exchange.

now... he said something different....

 

[lmspeir]

Thanks for the info. The way some of these carriers are talking about all this is a bit shady. But, imagine that happening in the insurance business.