HHS Charts Progress with State Exchanges, Details Extensions, Tweaks

The Department of Health and Human Services (HHS) awarded nearly $220 million in Affordable Insurance Exchange grants to 13 more states to help them create exchanges. Now, there is a total of 29 states moving toward creating exchanges, including Arizona.

So what are state exchanges? Why are they important?

• They are one-stop marketplaces where consumers can choose a private health insurance plan that fits their health needs, an important part of the Patient Protection and Affordable Car Act (PPACA). The health care reform law gives states the freedom to design their affordable insurance exchanges.

The HHS also announced a six-month extension for level one grant applications, effective from December 30th to June 29th, 2012, to accommodate state legislative sessions and give states more time to apply. Under the Affordable Care Act, states must ensure that their Exchanges are self-sustaining by January 1st, 2015.

Health Insurance Exchanges: Promoting Healthy Competition

Under national health reform, new federal rules will govern the small-group and non-group health insurance health markets. Included is now a requirement for state-based health insurance exchanges, or marketplaces. Between now and January 1st, 2014, key decisions about the design and operation of health insurance exchanges must be made by both the federal government and states. Broad federal guidelines have allotted the states to make different policy decisions, but face similar trade-offs.

The overarching question for federal and state policy makers is straightforward: How can the exchanges promote healthy competition among insurers while providing better healthcare at a lower cost?

Give us your opinion!