Three States Win Grants to Develop Health Insurance Exchanges - June 1, 2011

The U.S. Department of Health and Human Services (HHS) on May 23 announced it is awarding a total of $35 million to three states – Indiana, Washington and Rhode Island – to provide funding for the creation of health insurance exchanges. The grants, known as “Exchange Establishment Grants,” can be used for a number of activities, including conducting background research, consulting with stakeholders, making legislative and regulatory changes, governing exchanges, establishing information technology systems, conducting financial management, performing oversight and ensuring program integrity. Under the Affordable Care Act, states must have health insurance exchanges in operation by 2014 to help individuals and businesses locate and purchase health insurance. The awards announced on May 23 were the first in a series of Exchange Establishment Grants to be awarded in the coming months; the next round of applications for such grants is due June 30, 2011.