States across the country have more flexibility and resources to implement the Affordable Care Act, the Department of Health and Human Services (HHS) announced today. Vermont today joins 12 other states receiving grants to help establish Affordable Insurance Exchanges ‘ one-stop marketplaces where consumers can choose a private health insurance plan that fits their health needs and have the same kinds of insurance choices as members of Congress.
Vermont Governor Peter Shumlin said in a statement: ‘This was great news from Washington because the $18 million federal grant will enable us to create an easy-to-use web-based system to help people find health care benefits, plan for affordable benefit packages for Vermonters, and more. This grant will move us further along the path toward a single-payer health care system in Vermont that controls skyrocketing costs threatening Vermont families and businesses.’
The Vermont Health Benefit Exchange will vastly simplify health insurance purchasing and enrollment in Vermont’s public health care programs for many Vermonters, beginning in 2014. The federal Exchange Implementation Grant funds received today will assist Vermont to build state-of-the-art information technology system for the Exchange. The state will be able to use the same system for running the single-payer plan, Green Mountain Care. For example, the Exchange funds will build an interactive website to allow Vermonters to compare insurance plans on an apples to apples basis, similar to the way travel sites can be used to find the right time and date to take a plane trip.
Today’s awards bring to 29 the number of states that are making significant progress in creating Affordable Insurance Exchanges. These Exchanges were created by the Affordable Care Act and are designed to take the guesswork and confusion out of buying health insurance. Nearly $220 million in Exchange grants was awarded to States today.
The Vermont Agency of Human Services will receive more than $18 million in funding to further its planning, development, and design of the Vermont Health Benefits Exchange. The State will work with consumers and other stakeholder groups to continue health insurance market reforms, and development of new information technology systems. The funds will also fund a number of staff positions. Vermont intends to continue moving forward in the design of an Exchange that will coordinate with other government health care programs in the State, and a platform for the evolution of the single-payer health care system envisioned in Vermont statute.
HHS also released several Frequently Asked Questions providing answers to key questions States need to know as they work to set up these new marketplaces. Critical among these is that States that run Exchanges have more options than originally proposed when it comes to determining eligibility for tax credits and Medicaid. And States have until June 2012 to apply for ‘Level One’ Exchange grants.
‘We are committed to giving States the flexibility to implement the Affordable Care Act in the way that works for them,’ Secretary Sebelius said. ‘And Exchanges will give consumers more choices and make it easy to compare and shop for insurance plans.’
In the new Exchanges, insurers will provide new information such as an easy-to-understand summary of benefits and costs to consumers. The level of detail will sharpen competition between carriers which will drive costs down.
HHS is also releasing Frequently Asked Questions (FAQs) in anticipation of State legislative sessions beginning in January. Answers will help advance State policy development for Exchanges. For example, they clarify 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, a State-based Exchange to permit the Federal government to determine eligibility for premium tax credits.
Of the 13 States awarded grants today, 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.
Forty-nine States and the District of Columbia have already received planning grants, and 45 States have consulted with consumer advocates and insurance companies. Thirteen States have passed legislation to create an Exchange.
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 (the original deadline was December 30, 2011).
For more information on the State receiving grants, visit http://www.healthcare.gov/news/factsheets/2011/05/exchanges05232011a.html
For FAQs, visit: http://cciio.cms.gov/
For more information on Affordable Insurance Exchanges, visit http://www.HealthCare.gov/law/features/choices/exchanges/index.html.