HHS Rule Gives States Flexibility in Setting Up Health Insurance Exchanges

States will have the freedom to determine who operates their health insurance exchanges and which health plans can be sold through the exchanges, according to proposed guidelines released July 1 by HHS.

According to an American Medical News report, health insurance exchange officials will be responsible for certifying eligible health plans for the state marketplace and for operating websites, phone lines and offices to improve access to HIEs.

This level of control will only apply to states that decide to operate their own exchanges by the Jan. 2014 deadline. The federal government will step in and set up an exchange for any state that cannot meet the deadline or express no interest in setting up an HIE.

The proposed exchange rule does not require health exchanges to negotiate with plans on price or benefit offerings, but states can opt to do so. The rule also does not stop insurance industry representatives from serving on health exchange governing boards; states can make that decision too.

The proposed rule drew praise from several organizations, including the American Academy of Family Physicians, which said the rule provides flexibility to state officials.

Read the American Medical News report on health insurance exchanges.

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