State RegulationsNY specificDifficulty 1/5
Under the Affordable Care Act, which statement correctly describes how health insurance exchanges may be operated?
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
Under the Affordable Care Act, each state was given the choice to establish and run its own health insurance exchange. Where a state declined to act, the federal government stepped in and operates a federally facilitated exchange for that state's residents. This state-or-federal structure is why exchanges differ from state to state in name, operation, and oversight.
Why the other options are wrong
- A) State-run exchanges exist; federal operation is only the fallback when a state does not act.
- B) States have real operating authority under the act, not merely an advisory role.
- C) Private insurers sell their products on exchanges but do not own or operate the exchanges themselves.
Memory hook
Your exchange, your choice: state-run, or the feds run it for you.