8 States Spent $28M in Exchange Grants, Then Dropped Plans

Eight states received federal grants totaling $28 million to explore the option to establish their own health insurance exchange only to decide to shift the task onto the federal government, according to a report by Kaiser Health News.

The federal government made grant funding available to states to encourage them to research options and build an online marketplace to sell qualified health plans. Ten states that received such grants ultimately chose to default to a federally run exchange, although two of them — Maine and Pennsylvania — did not spend any of the money.

According to the report, Arizona spent the most in grant money to reach their "no" conclusion, with about $9 million going to private consultants and vendors who provided product information and research regarding exchange options. The other seven states spent a range from Mississippi's $7.5 million to New Jersey's mere $3,400, according to the report.

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