A number of health reform plans have proposed the creation of a government-run health care clearinghouse to aid individuals, employer groups and other in purchasing healthcare, and to fulfill other related functions.  These sites can operate as a disinterested party in relaying information to consumers about the various costs and benefits of different plans.  The government can also compel the timely, accurate, and understandable presentation of information by the companies they regulate.  Finally, they can insure that consumers get all the information available in one stop.

Clearinghouses can also facilitate the purchase of health insurance.

Both the Clinton and Obama health plans include a variation of the Connector concept, as do a number of other proposed reform initiatives.

The Commonwealth Health Insurance Connector Authority established by the State of Massachusetts as part of its health reform initiative is the first major clearinghouse of this kind.

The Commonwealth Health Insurance Connector Authority is designed to function as an ‘exchange’ that permits individuals, employers, brokers, and others to purchase health insurance.  It also administers an insurance program for low-income individuals, and is part of statewide initiatives that establish benefit requirements, oversee premium rates, and are expected to retrospectively study quality and outcomes for various health plans.

The assumptions underlying the connector/clearinghouse model are as follows:

• Insurance, whether private-only or a combination of public and private, is the dominant mechanism for funding healthcare delivery in the United States.
• Competition among competing plans is essential to reducing insurance costs and improving quality

• Better delivery of higher quality information will increase competition

This component applies to:

• Optimizing intermediation between patients and providers
• The Connector Authority creates a mechanism for evaluating and comparing intermediaries based on price and performance
• Transparency across multiple pricing and reimbursement strategies
• Connectors/clearinghouses publicize pricing and other financial information, leading to greater transparency
• Visible gaps between what insurance covers and the costs of healthcare
• Under some designs, connectors/clearinghouses regulate and limit the types of gaps that can exist, and provide public information on those that remain.
• Potential of alliances to create risk pooling and collective purchasing or action
• Connectors/clearinghouses may be a useful tool for governments at other levels than have been currently identified, and organizations that resemble them may become a tool of non-governmental entities.