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HHS Awards 185M in Exchange Establishment Grants

On August 12, 2011, the Department of Health and Human Services announced $185M in Exchange Establishment grants to 13 states and the District of Columbia.  The grant funds will be used in the development of each state’s insurance exchange for 2014 addressing areas such as strengthening health information technology systems, develop integrated consumer support programs, project management, legal, actuarial, financial expertise and general policy support.  

The 13 states receiving grant money include California, Connecticut, Illinois, Indiana, Kentucky, Maryland, Minnesota, Mississippi, Missouri, Nevada, New York, North Carolina, Oregon, Rhode Island, Washington and West Virginia.  The grants for Indiana, Rhode Island and Washington were granted on May 23rd with the rest of the states being August 12th.  States can continue to submit applications for grant funds up until the final deadline of June 29, 2012.  More than half of the states have begun developing insurance exchanges for 2014 with recommendations for Pennsylvania’s insurance exchange expected to be presented this Fall.  Residents of states that do not establish insurance exchanges for 2014 will be able to participate through the federal insurance exchange.
 
The announcement on August 12, 2011, also included three proposed rules for administering the state insurance exchanges.  These rules require 
  • Easy Access to Coverage for Consumers and Small Businesses;
  • Health Insurance Premium Tax Credits; and
  • Medicaid Eligibility coordination. 
HHS has not yet issues any rules on guidance to the states on any structure these three proposed rules must follow.