The state-based insurance exchanges set to open Oct. 1 under the Patient Protection and Affordable Care Act will likely have access to funding even if Congress fails to pass a spending bill and the federal government shuts down, exchange officials and health policy experts have told Reuters.
The funding that 16 states and the District of Columbia are set to receive to run their new health insurance exchanges is part of a "permanent appropriation," meaning the money is cemented in the 2010 healthcare reform law and isn't subject to annual appropriations, Paul Van de Water, a policy analyst at the Center on Budget and Policy Priorities, told Reuters.
However, it's unclear whether HHS will still be able to operate the PPACA data hub — which would gather information from federal agencies and state governments — in the event of a government shutdown, according to the report. The hub will be used to process applications for health insurance and determine eligibility for tax credits to cover the cost of premiums.
The White House Office of Management and Budget has said contractors can continue their work during a shutdown if they're working under already obligated funds covering the entire price of their contract with the government. However, CMS has declined to indicate whether the information technology contracts concerning the PPACA hub will meet those requirements, according to the report.
Federal lawmakers must pass a spending bill before Oct. 1 to prevent a government shutdown. Last week, House lawmakers passed a spending resolution that includes a provision to defund the PPACA. However, President Obama will reject any legislation that defunds or delays the healthcare reform law.
More Articles on PPACA Implementation:
Democrats: Defunding PPACA Will "Wreak Havoc" on Federal Health Programs
House Passes Spending Bill That Would Defund PPACA
GOP Bill Would Delay PPACA Exchange Enrollment Until Privacy Confirmed