Health Insurance Exchanges are on the way. The U.S. Department of Health and Human Services (HHS) has proposed a way to assist states in building Affordable Insurance Exchanges. Exchanges are state-based competitive marketplaces where individuals and small businesses will be able to purchase affordable private health insurance and have the same insurance choices as members of Congress. The exchanges are one-stop-shop where consumers and small businesses can compare and purchase plans.
HHS proposed new rules offering states guidance and options on how to structure their Exchanges by setting standards for establishing exchanges, certifying health plans for participation in the Exchange and ensuring premium stability for plans and enrollees in the exchange. According to the Centers for Medicare and Medicaid Services (CMS), these proposed rules set minimum standards for Exchanges, give states the flexibility they need to design Exchanges that best fit their unique insurance markets, and are consistent with steps states have already taken to move forward with Exchanges.
According to CMS, forty-nine states, the District of Columbia and four territories accepted grants to help plan and operate Exchanges. In addition, over half of all states are taking additional action beyond receiving a planning grant such as passing legislation or taking Administrative action to begin building exchanges. States will continue to implement exchanges on different schedules through 2014.
For more information on Exchanges, including fact sheets, visit http://www.healthcare.gov/exchanges