State seeks nearly $75 million to create health-benefit exchange
PBN FILE PHOTO / FRANK MULLIN
GOV. LINCOLN D. CHAFEE believes that the stateās application for a federal grant to build a health-benefit exchange will keep Rhode Island from being forced to accept a āgenericā federal solution.
PROVIDENCE ā Rhode Island is seeking a $74.5 million federal grant to establish a health-benefit exchange, less than a month after Gov. Lincoln D. Chafee moved to allow its creation by executive order.
The funding would cover āthe development, design and technology procurementā of an exchange over three years, according to an announcement by Chafeeās office on Tuesday.
The exchange will function as an online marketplace for health insurance for eligible individuals, families and small businesses, linking all Rhode Islanders with affordable health coverage, and providing access to federal subsidies for those who qualify, according to Chafeeās office. It will be operational by January 2014.
Creating the exchange is one of the requirements of federal health care reform law, which gives states the opportunity to design their own exchange, using federal funds to create a system that is individually tailored to meet residentsā needs.
Failure to establish an exchange of its own would result in the federal government imposing a generic exchange on Rhode Island, the governor said.
According to Chafee, the executive order he signed last month after the General Assembly failed to approve enabling legislation has allowed Rhode Island to meet federal deadlines to be eligible for the nearly $75 million in flexible funding the state is now seeking.
If was unclear from the release why the state is making such a large grant request or whether Rhode Island has already received federal money for the exchange. A spokesman for the governorās office did not immediately return a call seeking comment.
āThe federal funds at stake represent one of the largest grants in Rhode Island history and will enable the state to build new systems to make health insurance more understandable, easier to purchase and more affordable for many, while at the same time modernizing antiquated systems in related public insurance programs such as Medicaid,ā according to the news release from Chafeeās office.
āI am confident Rhode Island will be awarded this second round of funding and will implement an exchange that allows individuals and small businesses to choose from a range of comprehensive, understandable and affordable insurance options,ā Chafee said.
The state expects to know whether it will receive the funding by December.
Join PBN for the best networking event and party of the winter - January 15, 2015 - the Book of Lists Party at the Providence Public Library. Reserve your spot by December 31st and get a holiday gift from PBN!
PBN's annual Book of Lists has been an essential resource for the local business community for almost 30 years. The Book of Lists features a wealth of company rankings from a variety of fields and industries, including banking, health care, real estate, law, hospitality, education, not-for-profits, technology and many more.