Which statement about health insurance exchanges is correct?

• A. They centralize government-run plans
• B. They guarantee coverage for all applicants
• C. They assist individuals and small businesses in comparing and purchasing health plans
• D. They replace employer-sponsored plans

Answer: (C)

Health insurance exchanges are a marketplace where individuals and small businesses can compare health plans side by side and enroll in coverage. They provide information on plan features—such as premium costs, deductibles, and networks—and often offer financial help like subsidies for eligible buyers. This focus on comparison shopping and streamlined enrollment is why the statement describing exchanges as assisting individuals and small businesses in comparing and purchasing health plans is the best fit.

They don’t centralize government-run plans; plans on the exchange come from private insurers and can be offered through state or federal marketplaces. They don’t guarantee coverage for everyone—eligibility for subsidies and enrollment depends on factors like income and enrollment periods. And they don’t replace employer-sponsored plans; many people still get coverage through their employer, with exchanges serving as an option for individuals or small businesses to purchase plans.