Insurance Exchange Rules Released

The Health and Human Services Department on Monday issued its final rule for state-administered health insurance exchanges. Consumers and small businesses will use the exchanges to shop for and compare private insurance plans.

The policies "offer states substantial flexibility as they design a marketplace that works for their residents," HHS said in a news release. The Obama administration believes competition among insurers will drive down costs and provide individuals and small businesses with more coverage options.

The so-called Affordable Insurance Exchanges are expected to be operational in 2014. According to HHS, the policies:

• Set standards for establishing exchanges, creating a Small Business Health Options Program (SHOP), performing basic exchange functions and certifying participating health plans.
• Provide guidance on establishing an easy-to-use Web-based system where consumers apply for and enroll in an insurance plan or insurance-affordability program.

The department says states will decide whether to operate their exchanges with a nonprofit organization or a public agency. They will also have flexibility in how they select participating plans and insurers and on whether to work with HHS to manage certain functions.