[MMA News Now, October 7, 2010] The Department of Health and Human Services (HHS) awarded $49 million to 48 states and the District of Columbia to conduct planning and research to establish health insurance exchanges. State health insurance exchanges, which will debut in 2014, are considered to be a vital part of health care reform.

The only two states to not receive the grant money were Minnesota and Alaska. In August, Minnesota Governor Tim Pawlenty issued executive order 10-12, which prohibited all executive branch departments and agencies from participation in health care reform projects unless required by law or given permission by the governor’s office.

The MMA opposes Pawlenty’s decision to reject these funds. It is the MMA’s position that Pawlenty should leverage federal health care reform legislation to provide more resources for Minnesota.

The grants will be used by states to accomplish a number of tasks including assessing and overhauling IT systems, developing performance metrics and statutory rules, staffing the exchanges, gathering community and stakeholder input, and creating consumer call centers to answer questions about the exchanges.

“The Affordable Care Act helps states create exchanges, so individuals and small businesses can band together, have the same purchasing power as those big employers, and get a fairer deal when it comes to their health care,” said Kathleen Sebelius, HHS secretary.