Federal officials are laying the groundwork for the launch of state-based health insurance exchanges in 2014, handing out millions of dollars in grants to states, designing tools to determine eligibility to buy insurance, and proposing details on how the refundable premium tax credits will work.
The Health and Human Services department announced that it is awarding $185 million in “establishment” grants to 13 states and the District of Columbia to help them build their insurance exchanges. These grants follow planning grants awarded last year by HHS. More than half of the states have already taken some action to begin building their exchanges, according to HHS.
HHS, along with the Treasury Dept., also issued three proposed rules aimed at creating a system that's easy to navigate. The first proposal, from HHS, outlines standards and processes for consumers to enroll in a health plan and seek financial assistance. It also explains the standards for small employers to participate in exchanges. Another HHS proposal attempts to simplify the process for determining eligibility in Medicaid and the Children's Health Insurance Program and to coordinate these processes with the insurance exchanges so individuals can move from Medicaid to another health plan without losing coverage.
Finally, the Treasury Department issued a proposed regulation that explains how, under the Affordable Care Act, taxpayers with incomes at 100%-400% of the federal poverty level will be eligible for premium tax credits if they purchase insurance through the exchange for themselves or a family member.