Delaware gets $8.5 million for health insurance exchanges

State and federal officials Friday announced an $8.5 million insurance exchange award from the U.S. Department of Health and Human Services to the Delaware Department of Health and Social Services.

 The state will use this grant to support the review of qualified health plan applications and to analyze additional policy options for lower income Delawareans and individuals without coverage.

The project will also support the implementation of the Marketplace Assister program and outreach and education campaign, as well as monitoring of federally-selected navigators.

With about 100,000 uninsured Delawareans the expansion of Medicaid and the availability of subsidized commercial health insurance through an exchange should provide many of those who are currently uninsured with access to affordable health coverage.

 Under the Affordable Care Act, consumers and small businesses will have access to marketplaces starting in 2014. The marketplaces are one-stop shops that will provide access to quality, affordable private health insurance choices similar to those offered to members of congress, according to a release.

Consumers in every state will be able to buy insurance from qualified health plans directly through these marketplaces and may be eligible for tax credits to help pay for their health insurance.  These marketplaces promote competition among insurance providers and offer consumers more choices.

In all, $1.5 billion in new Exchange Establishment Grants were awarded to California, Delaware, Iowa, Kentucky, Massachusetts, Michigan, Minnesota, New York, North Carolina, Oregon, and Vermont to ensure these states have the resources necessary to build a marketplace that meets the needs of their residents. Delaware, Iowa, Michigan, Minnesota, North Carolina, and Vermont received awards for Level One Exchange Establishment Grants, which are one-year grants states will use to build marketplaces.

Delaware will begin enrolling clients in its health insurance exchange in October for coverage effective on Jan. 1, 2014.

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.

For updates, those interested can visit the Delaware Health Care Commission website at http://dhss.delaware.gov/dhss/dhcc.