The Health Insurance Marketplace

The Health Insurance Marketplace (also called the Exchange) is a platform where individuals and small businesses can shop for and purchase health insurance. It serves as the central mechanism for delivering ACA coverage and subsidies.

Marketplace Structure

Federal vs. State Exchanges

TypeDescriptionStates
State-Based Marketplace (SBM)State runs own exchange~18 states
Federally-Facilitated Marketplace (FFM)Federal government operates~32 states
State-Based on Federal PlatformState uses HealthCare.govSeveral states

HealthCare.gov

FeatureDetails
WebsiteHealthCare.gov
CoverageMost states
LanguagesMultiple language support
AssistanceNavigators, brokers, assisters

Key Point: Whether a state runs its own exchange or uses the federal platform, the same ACA rules and protections apply. Subsidies are available in all marketplaces.

Qualified Health Plans (QHPs)

QHP Requirements

RequirementDescription
EHBsMust cover all 10 essential health benefits
Cost-sharing limits2025 OOP max: $9,200 individual/$18,400 family
Provider networksMust have adequate network
Quality standardsMeet certification requirements
StandardizationFollow metal tier framework

Certification Process

StepDescription
ApplicationInsurers apply to participate
ReviewState/federal review of plan
CertificationPlan approved as QHP
MonitoringOngoing compliance required

Metal Tiers

Understanding Actuarial Value

Metal TierActuarial ValuePlan PaysYou Pay
Bronze60%60%40%
Silver70%70%30%
Gold80%80%20%
Platinum90%90%10%
Catastrophic<60%VariesVaries

Metal Tier Comparison

FeatureBronzeSilverGoldPlatinum
PremiumLowestLow-moderateModerateHighest
DeductibleHighestHighModerateLowest
CopaysHighestHighModerateLowest
Best forHealthy, low usageAverage usage, subsidy eligibleHigher usageHighest usage

2025 Enrollment by Metal Tier

TierApproximate %
Bronze~30%
Silver~55%
Gold~14%
Platinum~1%

Exam Tip: Silver plans are most popular because they're the only tier eligible for cost-sharing reductions (CSRs), which can boost actuarial value to 73%, 87%, or 94% for lower-income enrollees.

Catastrophic Plans

Catastrophic Plan Features

FeatureDetails
EligibilityUnder 30 OR hardship/affordability exemption
Coverage3 primary care visits before deductible
Preventive careCovered at 100%
DeductibleHigh (matches OOP maximum)
PremiumVery low
SubsidiesNOT eligible for premium tax credits

Who Qualifies

CategoryRequirement
Age-basedUnder 30 years old
Hardship exemptionFinancial or personal hardship
Affordability exemptionLowest bronze plan >8.39% of income

Open Enrollment Period

2025 Open Enrollment

DateEvent
November 1Open enrollment begins
December 15Deadline for January 1 coverage
January 15Open enrollment ends (most states)

State Variations

StateExtended Deadline
CaliforniaJanuary 31
New YorkJanuary 31
DCJanuary 31
OthersMay vary

Special Enrollment Periods (SEPs)

Qualifying Life Events

EventSEP Length
Loss of coverage60 days
Marriage60 days
Birth/adoption60 days
Move to new coverage area60 days
Divorce60 days
Death of family member60 days
Income change (Medicaid)60 days

SEP Verification

RequirementDetails
DocumentationMay be required to prove event
TimingMust enroll within 60 days
Coverage startUsually 1st of month following enrollment
Pre-enrollment SEPSome events allow coverage before enrollment

Key Point: SEPs provide a limited window to enroll outside of open enrollment. The qualifying event must have occurred within 60 days, and documentation may be required.

Marketplace Assistance

Types of Help Available

HelperDescription
NavigatorTrained, impartial enrollment assisters
Certified Application CounselorCommunity organization staff
Insurance broker/agentLicensed professionals (may earn commission)
In-person assistanceFace-to-face help
Phone assistanceCall center support

Free Assistance

ServiceCost
NavigatorsFree
Call centerFree
HealthCare.govFree
Certified counselorsFree

Exam Tip: Navigators and Certified Application Counselors provide free, impartial help. They cannot recommend specific plans but can explain options. Brokers/agents may earn commissions but costs are built into premiums (no extra charge to consumer).

Test Your Knowledge

Which metal tier plan has the highest actuarial value?

A
B
C
D
Test Your Knowledge

Which of the following is a qualifying life event for a Special Enrollment Period?

A
B
C
D
Test Your Knowledge

Who is eligible to purchase a Catastrophic health plan on the Marketplace?

A
B
C
D