CMS and HHS Release Exchange Funds - December 6, 2011

On Nov. 29, the U.S. Department of Health and Human Services (HHS) awarded $220 million in grants for health insurance exchange creation. The grants, which are made possible by the Affordable Care Act (ACA), provide 1 year of funding to help states establish their insurance exchanges. Thirteen states received these level one grants, and Rhode Island was awarded the first level two grant, which provides multiyear funding for states further along the exchange planning process. HHS also announced an extension in the deadline for level one grants and released a set of Frequently Asked Questions. A number of other states have already received exchange establishment grants this year.

CGI Federal, Inc., has been awarded a $55.7 million contract from the Centers for Medicare & Medicaid Services for the creation of a federally facilitated health insurance exchange. Provisions in the ACA require HHS to establish an exchange for states that do not establish a state or regional exchange by 2014. According to CGI, this 2-year contract could be extended for an additional year, with a total cost of $93.7 million.