Update on the Implementation of Health Care Exchanges under the Affordable Care Act
One of the main components of the Affordable Care Act is the creation of Healthcare Exchanges, state-run online marketplaces where individuals can compare and purchase health insurance. The law calls for the Department of Health and Human Services (“HHS”) to approve plans for state-run Healthcare Exchanges by January 2013, and for the Exchanges to be functional by January 2014.
Numerous Republican governors have refused to create state-run Healthcare Exchanges, citing opposition to the healthcare reform law. The effect of this decision, however, is that individuals in these states will be able to purchase insurance through a federally-run Healthcare Exchange.
While most states have already announced their intentions to either create a state-run Exchange, or to participate in the federal Exchange, several governors have not stated their plans. On November 15, 2012, HHS Secretary Kathleen Sebelius extended the deadline for states to declare whether or not they will set up their own Healthcare Exchange until December 16, 2012.
Currently, at least seventeen governors have stated that their state will not create an Exchange, and will instead participate in the federal program. Approximately ten states still have not formally announced whether or not they will create a state-run Exchange. Many states, including California, Washington, Oregon, and Nevada, have begun planning their state-run Healthcare Exchanges.
For more information about Exchanges and the Affordable Care Act, please contact your Trust Fund counsel.
Author: Ezekiel D. Carder
