Health Care Refom: State Exchanges

Health Insurance Exchange

An Exchange is a mechanism for organizing the health insurance marketplace to help consumers and small businesses shop for coverage in a way that permits comparison of available plan options based on price, benefits, and quality.  By pooling people together, reducing transaction costs, and increasing transparency, Exchanges hope to create more efficient and competitive markets for individuals and small employers.

Beginning with an open enrollment period in 2013, Exchanges plan to help individuals and small employers select and enroll in private health plans that fit their needs and budget. Exchanges will assist eligible individuals to receive premium tax credits or coverage through other Federal or State health care programs.

Federal Support

The Health Care Authority applied for and received a $1 million State Health Exchange Grant for planning an exchange in Washington State. The grant will be used to identify and document key business functions and policy decisions of a state-based exchange. The largest portion of the grant has been committed to a review of the information technology necessary to support a state-based exchange. 
On November 18, 2010, HHS (Health and Human Services) released their guidelines for states to qualify for further federal funding and technical support.   Necessary Exchange costs can be fully funded by HHS until 2015.  After January 1, 2015, Exchanges must be self funded.