8 states receive grants for insurance exchanges

By Bernie Monegain
11:30 AM

California, Connecticut, Hawaii, Iowa, Maryland, Nevada, New York, and Vermont have received new grants to help them build health insurance exchanges, Health and Human Services Secretary Kathleen Sebelius announced on Thursday.

Government officials see the exchanges as providing consumers and small businesses with access to high-quality, affordable health insurance via an online marketplace where consumers can choose a private health insurance plan that fits their health needs and, Sebelius noted, have the same kinds of insurance choices as members of Congress.

[See also: Health insurance exchanges mired in political battle.]
“We continue to support states as they move forward building an exchange that works for them,” Sebelius said. “Thanks to the healthcare law, Americans will have more health insurance choices and the ability to compare insurance plans.”
Via the exchanges, consumers will be able to learn whether they are eligible for tax credits and cost-sharing reductions, or other healthcare programs , such as  the Children’s Health Insurance Program. Small employers will be eligible to receive tax credits for coverage purchased for employees through the exchange.

The intent of the competitive marketplaces, said Sebelius, is to make purchasing health insurance easier and more understandable and to offer consumers and small businesses increased competition and choice.

[See also: CMS to develop eligibility tools for insurance exchanges.]
California, Hawaii, Iowa, and New York were awarded Level One Exchange Establishment grants, which provide one year of funding to states that have begun the process of building their exchange. Connecticut, Maryland, Nevada, and Vermont were awarded Level Two Establishment grants, which are provided to states that are further along in building their exchange and offers funding over multiple years.
Previously, 49 states, the District of Columbia and four territories received grants to begin planning their exchanges, Sebelius said. With today’s awardees, 34 states and the District of Columbia have also received establishment grants to begin building their exchanges.
On June 29, HHS announced a funding opportunity providing states with 10 additional opportunities to apply for funding to establish a state-based exchange, state partnership exchange, or prepare state systems for a federally-facilitated exchange. States can apply for exchange grants through the end of 2014, and may use funds during the initial start-up year.
A detailed breakdown of each grant award and what each state plans to do with its exchange funding is available here through the map tool on Healthcare.gov. Access fact sheels here.