What is a key characteristic of on-exchange insurance?

A key characteristic of on-exchange insurance is that income-based subsidies are available for eligible individuals. These subsidies are designed to help lower the cost of premiums and make health insurance more affordable for those with lower incomes. By enrolling through the health insurance exchange, individuals can access these financial assistance options, which can significantly reduce their out-of-pocket expenses when purchasing insurance.

On-exchange insurance is structured to support those who may struggle to afford health coverage. The availability of these subsidies is a central feature of the Affordable Care Act (ACA), which established the health insurance marketplaces to provide consumers with more options and financial assistance when it comes to purchasing health insurance. This characteristic of providing income-based subsidies distinguishes on-exchange plans from off-exchange plans, which do not offer the same financial assistance opportunities.