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Difference Between On-Exchange and Off-Exchange?

Buying health insurance has gotten easier over the last few years, but it can still be confusing with all the random health insurance jargon is thrown your way. Once you understand what some of these terms, like “on-exchange” and “off-exchange,” mean, it makes the experience easier.


This is considered health insurance plans that are offered through the Marketplace. The Marketplace is a huge online store for health insurance plans run by the state or federal government. The plans that are offered on the exchange are required to provide essential health benefits and follow more guidelines as set by the Affordable Care Act (ACA).

With these plans, you could qualify to receive a government subsidy depending on your income and household, resulting in your monthly health insurance premium being lower.

You should choose on the exchange plans if you qualify for a subsidy, need assistance in paying for your health insurance, or you make too much money to be eligible for Medicaid. 


Off-exchange means health insurance plans that are offered privately by each health insurance company. These plans provide the same essential health benefits as their on-exchange plans. The difference is that you won’t receive a subsidy or discount for these plans. 

You should choose off the exchange plans if you make too much money to qualify for a subsidy and your doctor doesn’t accept any health insurance plans that are on exchange. 

Due to COVID-19 open enrollment is going on until December 31, 2021. Call today to speak with a licensed broker to change or enroll in a new policy on or off the exchange.

Cosmo Insurance Agency is a full-service independent insurance agency based in Hackensack (Bergen County) and Lakewood (Ocean County), New Jersey that offers an all-encompassing range of insurance options for both individuals and businesses. Cosmo keeps its promise to assure an efficient and creative approach to the services we offer. Each of our clients experience a personalized and long-term relationship with us. Our New Jersey based team of health brokers guides our clients in helping them choose the most cost-effective options. By incorporating our knowledge of the insurance guidelines for healthcare, employee benefits, life insurance, self-insurance, dental, disability, and long term care insurance, we keep our clients up-to-date with affordable plans that cover all their specific insurance needs.