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HHS Extends Deadline for States to Declare Intent to Operate State-Based Exchanges
Practical Law Legal Update 9-522-4953 (Approx. 3 pages)
HHS Extends Deadline for States to Declare Intent to Operate State-Based Exchanges
by PLC Employee Benefits & Executive Compensation
| Published on 16 Nov 2012 • USA (National/Federal) |
The Department of Health and Human Services (HHS) has extended the deadline for states to declare their intent to operate state-based health insurance exchanges under the Affordable Care Act (ACA). The new deadline for declaration letters is December 14, 2012.
In a November 15, 2012 letter to state governors, HHS extended the deadline for states to declare their intent to operate state-based exchanges under the Affordable Care Act (ACA). Under the November 15 letter, the deadline for states to submit a declaration letter regarding whether they will operate a state-based exchange is now December 14, 2012. A state-based exchange is one of three exchange structures available to the states. The November 15 letter does not change the deadlines for the other two exchange types:
- State partnership exchanges, through which the states will partner with HHS to operate some, but not all, of the exchange activities.
- Federally-facilitated exchanges.
The November 15 letter builds on an earlier letter (dated November 9) in which HHS:
- Delayed the deadline for states to submit blueprint applications for state-based exchanges to December 14, 2012.
- Declined to extend the deadline by which states must submit declaration letters for state-based exchanges beyond November 16, 2012 (see Legal Update, Health Insurance Exchanges under the ACA).
Under HHS's November 15 letter, the declaration letter deadline for state-based exchanges now matches the deadline for state-based exchange blueprint applications: December 14, 2012.
Practical Impact
The extended deadline for declaration letters is a concession to Republican governors who requested more time to declare whether their states will choose to operate state-based exchanges. However, the extension means continued uncertainty for employers in those states that have not declared what type of exchange they will operate. To the extent these employers are evaluating whether to continue offering health coverage, they must do so, for the near future at least, with an incomplete picture of what the exchanges in their states will ultimately look like.
For additional analysis of the health insurance exchanges under the ACA, see Practice Note, The Health Insurance Exchange and Related Requirements under the ACA.