State Exchange Modernization Grant Program

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The American Rescue Plan Act of 2021 (P.L. 117-2) (ARPA) created a new grant program for Exchanges established by states under section 1311(b) of the Affordable Care Act (42 U.S.C. 18031(b)) . The program directs the Secretary to award $20 million to State Exchanges for purposes of enabling such Exchange to modernize or update any system, program, or technology utilized by such Exchange to ensure such Exchange is compliant with all applicable requirements. Applicable requirements include implementation of provisions of the ARPA, which increase financial assistance amounts available to certain taxpayers for Plan Years (PY) 2021 and 2022 who enroll in a qualified health plan through an Exchange. This is a Limited Competition Notice of Funding Opportunity (NOFO) that is open only to eligible applicants. Eligible applicants are State Exchanges that, at the time of the application due date, have received approval or conditional approval from the U.S. Department of Health and Human Services (HHS) under 42 CFR §§ 155.105 and 155.106. An eligible State Exchange includes an Exchange that operates its own eligibility and enrollment platform or an Exchange provided for at 42 CFR § 155.106(c) that utilizes the Federal platform. The Centers for Medicare & Medicaid Services (CMS) will award up to 21 cooperative agreements, totaling $20,000,000, to State Exchanges that submit a complete and successful application. CMS expects to award up to $1,333,333 per successful applicant, pending funding availability. The period of performance for this grant program will be from the date of award through September 9, 2022.

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