The HSS (Department of Health and Human Services), USA, says it is awarding funding so that States can create and apply IT infrastructure required for the proper operations of Health Insurance Exchanges. A strong IT infrastructure will help US citizens and small businesses buy affordable private health insurance in the new competitive insurance marketplaces in 2014. States that want to and can lead the race to develop IT systems will be eligible for direct funding. The systems will eventually be used as models for others States, HHS informs.
As from 2014, individuals and small businesses will be able to select and enroll top-quality, affordable private health plans tailored towards their individual needs through the Exchanges - a place where one-stop shopping can take place. The HHS says the system will make the whole process straightforward and user-friendly.
Top-quality and user-friendly IT infrastructures, like those that exist in airlines or banking are crucial for the success of Exchanges.
Exchanges will not be launched until 2014, however, plans for their design and implementation are already in progress. States have asked for early funding to develop the right information technology (IT), especially regarding enrollments systems and eligibility.
States that show leadership in developing state-of-the-art and cost effective, user-friendly technologies, termed "Early Innovators" by the HSS, will be rewarded with targeted grants. Especially those that develop models for enrollment and eligibility.
The HHS says the aim is to develop user-friendly health insurance plan systems that businesses, families and individuals can sign up to seamlessly. Further future funding will also be awarded to States, even the ones receiving the initial awards will be eligible for future ones. This funding opportunity will be announced in February, 2011.
Secretary of Health and Human Services Kathleen Sebelius, said:
States are focused on implementing the Health Insurance Exchanges because they know the Exchanges will empower their citizens by forcing health insurers to compete. Consumer-friendly information technology is the backbone of that effort which is why we are creating an incentive for States that are willing and able to lead the way to do so.
The 2-year grants will be awarded on February 15 next year. Up to five States or State-coalitions that have created practicable proposals that will benefit all the nations States will be contenders.
The focus will be on developing:
consumer-friendly systems
cost effective systems
models (systems) that can be used by other States
systems that help the Federal government save money as it works towards developing new competitive market places
For the five winning States or coalition of States, the HSS says it will provide the "necessary resources to develop and establish the most innovative systems possible that meet consumer and employer needs in a cost effective manner."
Joel Ario, Director of OCIIO's Office of Health Insurance Exchanges, said:
States are developing cutting-edge innovative systems to deliver cost-effective and consumer friendly care to families and small businesses. By encouraging and rewarding states for their innovation, we can build and leverage models that can be adopted and tailored by other States and generate taxpayer savings across the board.
Health Insurance Exchange
A Health Insurance Exchange is set up as a governmental or quasi-governmental entity. It is a marketplace for buying health insurance, aimed at helping insurers comply with consumer protections, to compete in cost-effective ways, and to make sure insurance coverage spreads to more people. Health Insurance Exchanges are not insurers, they do not bear risk.
Source: HHS