WASHINGTON ? On Monday, the U.S. Department of Health and Human Services released its proposed rules on state insurance exchanges, giving states lots of leeway in setting up the marketplaces, the Wall Street Journal reports.
Many states have been dragging their feet in setting up the exchanges. Currently, only a dozen states have approved exchanged laws. Massachusetts and Utah already had such exchanges in place.
The exchanges will let small businesses and individuals to buy health insurance similar to purchasing airfare or hotel rooms online. States have until 2014 to set up the exchanges or their residents would have to use the federal version.
Exchanges will be the main way millions of consumers will be linked to federal subsidies that will assist in coverage payments. The proposed rules provide wide latitude for states, which the Obama administration hopes will spur more states to begin the exchange process.
The rules also contain flexibility for small businesses, which could select plans for employees or let workers pick their own plan. Questions not addressed in this proposal will be answered in future regulations.
Earlier this month, a federal appeals court upheld the health care individual mandate.
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