Short Term health insurance plans do not meet the minimum essential coverage requirements under the Affordable Care Act (ACA), also known as Obamacare, and may result in a tax penalty. They are designed solely to provide temporary healthcare insurance during unexpected coverage gaps.
The term “health insurance exchange” (also known as a “health insurance marketplace”) has become part of the mainstream conversation about health insurance and healthcare reform over the last few years. The Affordable Care Act (ACA), passed in March 2010, called for the creation of an exchange in each state, but the practical implementation of those exchanges varies considerably from one state to another. As a result, questions about what the exchanges are, what they offer, and how they work, are still widespread. And as with most aspects of the ACA, health insurance exchanges became yet another battleground in the political fight over the ACA.
The Affordable Care Act, also known as the Patient Protection and Affordable Care Act (PPACA) became law on March 23, 2010. According to the United States Department of Health and Human Services, the act “puts consumers back in charge of their health care.” The act was signed in by President Barack Obama, and it is informally known as “Obamacare.”
The aim was to improve the health care system of the U.S. by widening health coverage to more Americans, and by protecting existing health insurance policy holders.