Abstract
The Affordable Care Act of 2010 created a number of federal and state exchanges through which buyers and sellers of health care services conduct business. Some private health insurance exchanges had existed before the Affordable Care Act, mainly for Medicare-eligible retirees. However, beginning in 2012, in response to a number of developments, private sector employers began using such exchanges for active employee health plans. The adoption of private exchanges has been spectacular, and they will soon dominate the private sector employer-sponsored health benefits market. This article examines this important development.
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