HHS moving forward with federal exchange planning

Federal officials continue to move forward with plans to operate their own exchange for about half the states where local officials have indicated they will not set up a state-run exchange (Source: "U.S. Officials Brace for Huge Task of Operating Health Exchanges," New York Times, Aug. 4, 2012).

“We realize that not all states will be ready to establish these exchanges by 2014, so we are setting up a federally facilitated exchange in those states,” said Michael Hash, the top federal insurance regulator. “We are on track to go live in October 2013, which is the beginning of the first open season for the individual and small group markets.”

To date, officials in 13 states (with nearly one-third of the U.S. population) have confirmed plans to build their own exchanges. Complete applications are due on Nov. 16, although Lt. Gov. Mary Taylor, who also serves as Director of the Ohio Department of Insurance, said recently that Ohio would not opt to establish it's own state-run exchange.

Federal and state officials and health policy experts expect that the federal government will run the exchanges in about half of the 50 states.