HHS Awards $181M to 6 States for Health Insurance Exchanges

HHS Secretary Kathleen Sebelius announced that six states — Illinois, Nevada, Oregon, South Dakota, Tennessee and Washington — will receive more than $181 million of federal money to assist in implementing health insurance exchanges.

The health exchanges are part of the Patient Protection and Affordable Care Act; starting in 2014, should the Supreme Court uphold the federal healthcare law, HHS will step in and implement health exchanges in states that have yet to establish their own. The exchanges are intended to help consumers and small businesses choose affordable health insurance plans. The senior healthcare policy advisor of Illinois, Michael Gelder, has likened the pending exchanges to Expedia, an airfare and travel website that allows consumers to compare prices when planning trips.

The six states receiving grants from HHS today joins the District of Columbia and 28 other states that have received establishment grants for exchanges.

States can apply for exchange grants through the end of 2014, and HHS plans to make grant money available beyond that year to help establish exchanges. The HHS has established blueprints for states to help them architect the exchanges.

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