Posted: January 18, 2013
The Department of Health and Human Services (HHS) has awarded an additional $1.5 billion in grants to 11 states to develop their online health insurance exchanges.
HHS Secretary Kathleen Sebelius, in announcing the grants, said the money is intended to ensure the states have the resources necessary to build online marketplaces that meets the needs of their residents.
California, Delaware, Iowa, Kentucky, Massachusetts, Michigan, Minnesota, New York, North Carolina, Oregon, and Vermont have all received portions of the Exchange Establishment Grants.
“These states are working to implement the health care law and we continue to support them as they build new affordable insurance marketplaces,” Sebelius said. “Starting in 2014, Americans in all states will have access to quality, affordable health insurance and these grants are helping to make that a reality.”
Beginning Jan. 1, 2014, Americans must be covered by health insurance as required by the Patient Protection and Affordable Care Act (PPACA). All exchanges must be operational by Oct. 1, 2013, to allow consumers to begin purchasing insurance online.
Delaware, Iowa, Michigan, Minnesota, North Carolina, and Vermont received awards today for Level One Exchange Establishment Grants, which are one-year grants states will use to build marketplaces.
California, Kentucky, Massachusetts, New York, and Oregon received Level Two Exchange Establishment Grants today. Level Two grants are multi-year awards to states to further develop their marketplaces.
PPACA requires all states to have an online insurance exchange.
A total of 19 states are operating their own exchanges, 25 defaulted and have passed the responsibility for creating and running their exchanges back to the federal government, and seven will operate as state-federal exchange partners.