Federal & State Regulations | State insurance exchanges - Massachusetts

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Summary of differences between federal and state regulations

The U.S. Department of Health and Human Services (HHS) must make a determination on or before January 1, 2013, that a state will in fact have an exchange in operation by 2014 and that the exchange meets the requirements of the Affordable Care Act (ACA) and HHS guidance. In a letter dated November 15, 2012, Secretary Sebelius indicated that a state may submit both a letter of intent and an application to operate its own exchange by December 14, 2012. If a state elects not to operate an exchange, or if the HHS determines that the state will not be able to have an exchange operational by 2014 that meets the law’s requirements, the ACA gives the HHS the authority to establish and operate such exchange within the state.

The Federal government awarded Massachusetts three grants from the federal government:

The Exchange Planning Grant, awarded in September 2010, in the amount of $1 million; and
The Level One Establishment Grant, awarded in February 2012, in the amount of $11.6 million.
Massachusetts is part of the New England States Collaborative Insurance Exchange Systems. This consortium received a $36 million federal Early Innovator grant to develop and share insurance exchange technology.

In April 2006, former Massachusetts Gov. Mitt Romney signed comprehensive health reform legislation. This law was the model for the ACA. The law created the Massachusetts HealthConnector, a health insurance exchange.