New GAO Report Finds There is Still Much to be Done for State-Based Exchanges

The Centers for Medicare & Medicaid Services (CMS) are schedule to operate a health insurance exchange in the 34 states that are not setting up their own exchanges. CMS has indicated that it will carry out additional exchange functions for states are not ready. The Government Accountability Office (GAO) has found that: “CMS completed many activities necessary to establish FFEs by October 1, 2013, although many remain to be completed and some were behind schedule. CMS issued numerous regulations and guidance and took steps to establish processes and data systems necessary to operate the exchanges. The activities remaining cross the core exchange functional areas of eligibility and enrollment, plan management, and consumer assistance.”

The report also indicated that while a lot of work has been done, there is still a lot left. GAO stated “Much progress has been made, but much remains to be accomplished within a relatively short amount of time. CMS's timelines provide a roadmap to completion; however, factors such as the still-evolving scope of CMS's required activities in each state and the many activities yet to be performed--some close to the start of enrollment--suggest a potential for challenges going forward. And while the missed interim deadlines may not affect implementation, additional missed deadlines closer to the start of enrollment could do so. CMS recently completed risk assessments and plans for mitigating risks associated with the data hub, and is also working on strategies to address state preparedness contingencies. Whether these efforts will assure the timely and smooth implementation of the exchanges by October 2013 cannot yet be determined.”

A copy of the GAO report is available here.