By Joe Touschner

In addition to the package of proposed rules it released on August 12, HHS also announced the award of more than $185 million in grants to help states develop their exchanges.  The federal funds will support state efforts to strengthen information technology systems, analyze insurance markets, develop consumer assistance capacity, and design business operations for their exchanges.

Three states had already been awarded exchange establishment grants earlier this year, so this month’s announcement brings the total to 16 states and DC.  Grants were awarded to:

California, Kentucky, Missouri, Oregon, Connecticut, Maryland, Nevada, Rhode Island, District of Columbia, Minnesota, New York, Washington, Illinois, Mississippi, North Carolina, West Virginia and Indiana

The list shows that states are taking advantage of the flexibility the Affordable Care Act gives them in the exchange development process.  Some of these states passed legislation to authorize an exchange before applying for the grant, while others have pursued the funding in advance of legislative action.  It also shows the variety of states that are moving forward on exchange planning–states large and small, red and blue, from all regions of the country applied for and received grants.  These latest establishment grants are in addition to the exchange planning grants that went to 49 states and DC last year and the Early Innovator grants that are allowing a handful of states to pave the way for others on exchange development.

The exchange establishment grants are available to all states and there is a rolling application deadline at the end of each calendar quarter.  Find out more at grantsolutions.gov.