Delaware Thursday became the first state to receive conditional approval from the U.S. Department of Health and Human Services for a State Partnership Health Insurance Exchange under the Affordable Care Act.
Exchanges have been controversial with some Republican governors who have opted out of the program. For states that do not participate, residents can join a national exchange.
An exchange is an online marketplace, with consumers and some small businesses. able to choose and sign up for health care coverage beginning in January 2014. For further information on the Affordable Health Care Act, CLICK HERE
The State Partnership Exchange model is an option provided to states that want to manage part of the exchange in 2014, taking advantage of the federal infrastructure while maintaining control of key decisions and tailoring the marketplace to address local needs and market conditions.
The conditional approval provided to Delaware is the first of its kind.
U. S. Health and Human Services Secretary Kathleen Sebelius said the approval was a significant milestone on the path to establishing an exchange for the people of Delaware.
“States across the country are working to implement the health care law and build a marketplace that works for their residents,” said Sebelius. “In ten months, consumers in all fifty states will have access to a new marketplace where they will be able to easily purchase quality health insurance plans.”
“We appreciate that Secretary Sebelius and her staff recognize Delaware’s commitment and leadership in its state health policy,” Gov. Jack Markell said. “Partnering with the federal government provides us with the ability to address the needs of Delaware’s health care consumers, including small businesses, and providers in a fiscally responsible way as we work together to ensure access to quality affordable health care for Delawareans.”
Through the state Departments of Health and Social Services and Insurance and the Delaware Health Care Commission, Delaware pursued a State Partnership Exchange instead of a state-based exchange because of Delaware’s small population and costs associated with a state-based exchange.
Delaware expects to serve about 35,000 people through the Exchange. The state will retain control of plan management, including state requirements for qualified health plans, as well as the consumer assistance function.
In October 2013, Delaware will begin enrolling clients in its health insurance exchange for coverage effective on January 1, 2014.
To stay updated on Delaware’s exchange activities, visit the Delaware Health Care Commission website.
