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HHS Issues Proposed Rules on Implementing Health Insurance Exchanges

The Department of Health and Human Services (HHS) on July 11, 2011 released two sets of proposed regulations to implement the new Affordable Insurance Exchanges (“exchanges”) as required by the Patient Protection and Affordable Care Act (Affordable Care Act). The first proposed regulation outlines a framework that will enable states to build insurance exchanges and the second proposed regulation addresses standards related to reinsurance, risk corridors, and risk adjustment to assure stability in these newly established markets. This Aon Hewitt report focuses mainly on the first proposed regulation regarding building an exchange.

According to the preamble of the proposed regulation on building an exchange, the exchanges will provide competitive marketplaces for individuals and small employers to directly compare available private health insurance options on the basis of price, quality, and other factors. The exchanges, which will become operational by January 1, 2014, will help enhance competition in the health insurance market, improve choice of affordable health insurance, and give small businesses the same purchasing power as large businesses.

The Aon Hewitt report available below provides a detailed analysis of the exchange regulations.

HHS Issues Proposed Rules on Implementing Health Insurance Exchanges