Feds Exchange Funds
By
John Pulley
The push to create health insurance exchanges got a shot in the arm this week when the federal government announced $241 million in grants to develop the necessary IT infrastructure.
Kansas, Maryland, New York, Oklahoma, Oregon, Wisconsin and a consortium of New England states received the grants as "Early Innovator" states. Grants range from $6.2 million to more than $54 million.
"Early Innovator states will play a critical role in developing a consumer-friendly marketplace where insurers must compete to deliver the best deal," Kathleen Sebelius, secretary of Health and Human Services, says in a news release Wednesday.
"These grants ensure that consumers in every state will be able to easily navigate their way through health insurance options."
Health insurance exchanges (HIEs) are a key element of the health-care reform measure passed by Congress last year. They will help individuals and small businesses comparison shop for health insurance in their state. The HIEs are scheduled to launch in 2014, but states have requested early funding to start designing the IT infrastructure.
"All Early Innovator states have committed to assuring that the technology they develop is reusable and transferable," says HHS, which has posted additional information about the program on its healthcare.gov site. "Using the grants, they will develop the building blocks for exchange IT systems, providing models for how exchange IT systems can be created."
Grant amounts vary by state:
- Kansas Insurance Department, $31.6 million
- Maryland Department of Health and Mental Hygiene, $6.2 million
- University of Massachusetts Medical School for New England Consortia, $35.6 million
- New York Department of Health, $27.4 million
- Oklahoma Health Care Authority, $54.6 million
- Oregon Health Authority, $48.1 million
- Wisconsin Department of Health Services, $37.8 million