On April 5th, the U.S. House Energy and Commerce Committee favorably voted on H.R. 1213, a bill to repeal mandatory federal funding to states to establish health insurance exchanges required under federal health care reform law (i.e., the Patient Protection and Affordable Care Act, PPACA).
PPACA requires states to create, by 2014, an “American Health Benefit Exchange” and a “Small Business Health Options Program (SHOP) Exchange.” These exchanges will be online marketplaces where individuals and small businesses can compare and purchase qualified health plans. If a state fails to establish the exchanges or is not making adequate progress in doing so by January 1, 2012, the federal government can step in and organize a federally-run exchange.
Almost every state, including Connecticut, has applied for and received planning grants to establish the exchanges.
The bill passed the committee in a 31-20 vote.
