The Department of Health and Human Services has awarded nearly $49 million to help 48 states and the District of Columbia plan for health insurance exchanges – competitive, consumer-centered private health insurance marketplaces called for in the Affordable Care Act.
The grants of up to $1 million each will be used for:
- Assessing current information technology systems and infrastructure and determining new requirements;
- Developing partnerships with community organizations to gain public input into the exchange-planning process;
- Planning for consumer call centers;
- Determining the statutory rules needed to build the exchanges;
- Hiring staff and determining ongoing staffing needs;
- Planning the coordination of eligibility and enrollment systems across Medicaid, the Children's Health Insurance Program and the exchanges; and
- Developing performance metrics, milestones and ongoing evaluation.
"Today, too many individuals and small businesses are on their own in dealing with insurance companies," said HHS Secretary Kathleen Sebelius in a Sept. 30 press release. "They pay higher costs than Americans who get their insurance through big companies or other large employers because they can't pool their costs or spread the risk."
Sebelius said the grants would help states create exchanges so that individuals and small businesses can band together, have the same purchasing power as big employers and get a fairer deal.
The exchanges will be designed to make purchasing health insurance easier by providing eligible consumers and businesses with "one-stop-shopping" to compare and purchase health insurance coverage. Residents will have the same health care choices as members of Congress, who will also purchase coverage through the exchanges.
Individuals and families purchasing health insurance through exchanges may also qualify for tax credits and reduced cost-sharing, depending on their income.