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New Health Exchange Rules Help States Move Forward

Final rules give state leaders the flexibility they need to craft a pro-consumer, negotiating health benefits exchange
For Immediate Release

Statement of US PIRG Policy Analyst Mike Russo on today’s release of federal exchange regulations:

The rules released today by the federal Department of Health and Human Services put states in the driver’s seat when it comes to setting up new health benefits exchanges.  Exchanges are a centerpiece of the federal health reform law, allowing states to create new competitive marketplaces where individuals and small businesses can get a better deal on coverage. The regulations lay out the minimum standards a state will need to meet in order to run their own exchange, but states will need to make many additional decisions to ensure that their exchange serves consumers’ needs. 

Today’s rules give state leaders needed clarity on the legal framework governing exchanges, but HHS has released a menu, not a recipe.  States must go above the  minimum requirements to empower their exchanges to negotiate on behalf of consumers for better rates and higher-value coverage; they must also ensure that the exchange is accountable to consumers, not the insurance industry. 

These final rules update a series of drafts HHS released last year, and make several important changes, including a requirement that exchange governing boards include consumer representation, and improved safeguards for consumers’ personal information.  These are positive steps – now it’s up to the states to take the baton.

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U.S. PIRG, the federation of state Public Interest Research Groups, is a non-profit, non-partisan public interest advocacy organization. For more information, visit http://www.uspirg.org.
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