HHS Announces $51 Million for State Health Insurance Exchanges

Input on Standards Needed

The Department of Health and Human Services (HHS) today announced two new steps to begin establishing state health insurance Exchanges.  HHS announced the availability of up to $1 million in grants per state to help states begin to establish Exchanges and published a request for comment calling for public input as HHS develops standards for the Exchanges.

Starting in 2014, health insurance Exchanges – new, competitive, consumer-centered health insurance marketplaces – will put greater control and greater choice in the hands of individuals and small businesses.  The Exchanges will make purchasing health insurance easier by providing eligible consumers and businesses with “one-stop-shopping” where they can compare and purchase health insurance coverage.  The first round of grants will give states resources to conduct research and planning needed to build a the health insurance marketplace and determine how their Exchanges will be operated and governed.

Keeping with President Obama’s commitment to transparency and open government, HHS issued a request for comment asking states, consumer advocates, employers, insurers, and other interested stakeholders to provide input as HHS develops the rules and standards Exchanges should be required to meet. Comments are due by October 4, 2010.  Read the complete request for comment at http://www.healthcare.gov/center/regulations.

Each state has the option to establish and operate its own Exchange or partner with another state or states to operate a regional Exchange. If a state decides not to create an Exchange for its residents, HHS will help establish one on their behalf.  State grant applications are available at http://www.healthcare.gov/center/grants and are due by September 1, 2010. 

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