On November 29, 2011 the Department of Health and Human Services (HHS) announced its award of nearly $220 million in Affordable Insurance Exchange Grants to 13 states to help them implement Insurance Exchanges pursuant to the Patient Protection and Affordable Care Act (PPACA). States receiving funds from the November 29th grant include Alabama, Arizona, Delaware, Hawaii, Idaho, Iowa, Maine, Michigan, Nebraska, New Mexico, Rhode Island, Tennessee and Vermont. Of those states, 12 are receiving Level One grants, which provide one year of funding to states that have already made progress using their Exchange planning grant. The 13th state, Rhode Island, is receiving the first Level Two grant, which provides multi-year funding to states further along in the planning process.
Under the PPACA, states have the freedom to design Affordable Insurance Exchanges, where consumers can choose a private health insurance plan that fits their health needs. In the Exchanges, insurers will provide new information such as an easy-to-understand summary of benefits and costs to consumers.
HHS also released a set of Frequently Asked Questions in anticipation of state legislative sessions beginning in January. The answers are designed to help advance state policy development for Exchanges. Some examples include: that Exchange grants can be used to build a state Exchange that is operational after 2014; that state-based Exchanges will not be charged for accessing Federal data needed to run Exchanges in 2014; and that state insurance rules and operations will continue even if the Federal government is facilitating an Exchange in the state. HHS will also allow greater flexibility in eligibility determinations, allowing, for example, an Exchange to permit the federal government to determine eligibility for premium tax credits.
States have many opportunities to apply for funding. To accommodate state legislative sessions and to give states more time to apply, HHS also announced a six-month extension for Level One establishment grant applications. Applications now will be accepted until June 29, 2012.
For more information on Affordable Insurance Exchanges, click here.



