HHS and Treasury Issue Proposed Rule on ACA State Innovation Waivers - March 15, 2011

On March 10, the Departments of Health and Human Services (HHS) and Treasury issued a proposed rule governing the application, review, and reporting process for State Innovation Waivers, as authorized under Section 1332 of the Affordable Care Act (ACA). Beginning in 2017, states will be able to obtain waivers from certain provisions of the ACA and receive block grants from the federal government in the amount the states otherwise would receive under the health reform law. States can then use the grants to implement their own health reform initiatives as long as these initiatives provide affordable coverage that is at least as affordable and comprehensive as coverage offered by the Health Insurance Exchanges, provide coverage to as many residents as the ACA insurance changes would cover, and do not increase the federal deficit. The Obama administration supports legislation that would amend the ACA and allow states to apply for innovation waivers beginning in 2014. To read the HHS press release on the proposed rule, click here.