HHS Exchange Funding Tops $1B

Margaret Dick Tocknell, May 17, 2012

The Department of Health and Human Services on Wednesday announced the award of $181 million in new grants to help states establish health insurance exchanges. HHS also issued two guidance documents to help states build exchanges.

Illinois, Nevada, Oregon, South Dakota, and Tennessee received Level One exchange establishment grants, which provide one year of funding to states that have begun the process of building their exchange.

Washington became only the second state to be awarded a Level Two establishment grant, which offers funding over multiple years to states that are further along in building their HIX. Rhode Island was the first state to receive a Level Two grant.

At the press conference announcing the grants and guidance materials, HHS Secretary Kathleen Sebelius noted that the grants enable states to "go at their own pace" as they set up exchanges.

All totaled, HHS has awarded an estimated $1.2 billion in exchange grants since 2010:

  • Planning grants to 49 states and the District of Columbia totaling more than $54 million,
  • Early innovator grants to seven states totaling more than $249 million, and
  • Establishment grants to 34 states and the District of Columbia totaling more than $856 million
Margaret Dick Tocknell Margaret Dick Tocknell is a reporter/editor with HealthLeaders Media.
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