HHS begins rolling out second round of exchanges grants

Each state has the ability to run its own exchange, in keeping with federal standards, and HHS wants states to use that authority. It will operate a fallback exchange in any states that don’t set up their own marketplaces.

HHS has previously awarded an initial round of exchange planning grants — $1 million each to every state except Alaska. That money was intended to help states get the ball rolling and figure out what they want their exchanges to accomplish. States could then apply for the establishment grants that HHS began awarding Monday.

The House voted last month to cut off grant money for the exchanges. The Congressional Budget Office said that would save $14 billion over 10 years.