Definition - What does Insurance Exchange mean?
An insurance exchange is a marketplace for insurance, commonly used in health insurance.
By signing the Affordable Care Act, President Obama created an insurance exchange in which people can choose between plans offered by the state government, the federal government, or private insurers. Insurance exchanges are designed to encourage competition.
Insuranceopedia explains Insurance Exchange
Because of the Affordable Care Act, insurance exchanges are not allowed to deny people coverage due to pre-existing conditions.
The primary benefit of insurance exchanges is that they give consumers the opportunity to choose from many different insurance plans.