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500 E. Capitol Ave.
Pierre, S.D.57501
(605) 773-3212
FOR IMMEDIATE RELEASE: Thursday, Sept. 30, 2010
CONTACT: Joe Kafka or Roxy Everson, 605-773-3212
South Dakota Gets Grant to Plan Health Insurance Exchange
PIERRE, S.D. – Gov. Mike Rounds announced today that South Dakota has received a $1 million grant from the U.S. Department of Health and Human Services (HHS) to plan for a health insurance exchange.
The federal Affordable Care Act (ACA) contemplates an exchange to be one-stop shopping place where people can purchase health insurance coverage.
Exchanges will allow individuals below certain income levels to obtain financial assistance in the form of tax subsidies and cost-sharing reductions that will make health insurance more affordable. Small businesses will also be able to purchase insurance for their employees through the exchanges.
The federal health care reform act requires each state to have an exchange in place by 2014.
ACA gives states the first opportunity to run exchanges. If a state is unwilling or unable to run an exchange, HHS will create an exchange to operate in that state.
“The creation of a state-based exchange by 2014 is a difficult undertaking for states – given their current financial situation in this national recession,” Gov. Rounds said. “A few exchange models have been tried in Massachusetts and Utah, but there is relatively little successful modeling with regard to the concept. Unfortunately, because of that newness, states lack the tried and true experience that would make it easier for them to create exchanges.”
The $1 million grant from HHS will allow South Dakota to cover the cost of the resources needed to determine if a state-based exchange should be created.
State officials will conduct background research and gather the necessary stakeholder input needed to design an appropriate exchange for South Dakota. The federal funding will help explore the infrastructure, staffing, information systems and financial systems needed to operate a state-based exchange.
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