The Department of Health and Human Services has awarded nearly $49 million to help 48 states and the District of Columbia plan for health insurance exchanges, including assessing existing information technology systems and infrastructure.

The health insurance exchanges – competitive, consumer-centered private health insurance marketplaces – are called for in the Affordable Care Act. They are aimed at giving individuals and small businesses greater control and more choices.

The grants of up to $1 million each will give states the resources they need for:

• Assessing current information technology systems and infrastructure and determining new requirements
• Developing partnerships with community organizations to gain public input into the exchange planning process
• Planning for consumer call centers to answer questions from their residents
• Determining the statutory rules needed to build the exchanges
• Hiring key staff and determining ongoing staffing needs
• Planning the coordination of eligibility and enrollment systems across Medicaid, the Children's Health Insurance Program (CHIP), and the exchanges
• Developing performance metrics, milestones and ongoing evaluation

"Today, too many individuals and small businesses are on their own in dealing with insurance companies," said HHS Secretary Kathleen Sebelius when she made the announcement on Sept. 30. "They pay higher costs than Americans who get their insurance through big companies or other large employers because they can't pool their costs or spread the risk."

Sebelius said the grants would help states create exchanges, so individuals and small businesses can band together, have the same purchasing power as big employers, and get a fairer deal.

The state-based exchanges will make purchasing health insurance easier by providing eligible consumers and businesses with "one-stop-shopping" where they can compare and purchase health insurance coverage.  Americans will have the same health care choices as members of Congress – who will also purchase coverage through the exchanges. Individuals and families purchasing health insurance through exchanges may also qualify for tax credits and reduced cost-sharing depending on their income.