Midwest States Getting $1M Each for Health Exchanges

Federal officials say Illinois, Nebraska and the Dakotas will each be getting $1 million to help the states establish a health insurance exchange.

The exchanges, created by the federal Affordable Care Act, are meant to be one-stop shopping where people can purchase health insurance coverage. They’re scheduled to be in place in 2014.

The exchanges are aimed at helping individuals and small businesses join forces to create the same health care purchasing power as big employers. They’ll allow individuals below certain income levels to get financial assistance through tax subsidies and cost-sharing reductions that will make health insurance more affordable.

The act gives states the first opportunity to run exchanges. If a state is unwilling or unable to run an exchange, the department will create an exchange to operate in that state.

The U.S. Department of Health and Human Services is distributing nearly $49 million to help the states do the planning necessary to establish the exchanges and decide how they’ll operate.

Federal authorities also say individuals and families obtaining health insurance through exchanges may qualify for tax credits or other aid, depending on their incomes.

Fact sheet:
http://www.healthcare.gov/news/factsheets/esthealthinsurexch.html