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What are Exchange State Planning and Establishment Grants?

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What are Exchange State Planning and Establishment Grants?

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The Affordable Care Act of 2010 authorizes State Planning and Establishment Grants to help States establish health insurance Exchanges. On July 29, 2010, HHS issued a grant solicitation (also referred to as a Funding Opportunity Announcement, or FOA) publicizing the availability of the first round of funding for these grants – up to $1 million for each State and the District of Columbia. Although State Exchanges are not required to be operating until 2014, work is already underway to conduct the necessary market research and planning. These grants will give States the resources to conduct the research and planning needed to build a better health insurance marketplace and determine how their Exchanges will be operated and governed.

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