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Beginning in 2014, individuals and small businesses will be able to purchase private health insurance through state-based competitive marketplaces known as Affordable Health Insurance Exchanges (Exchanges). On March 12, 2012, the U.S. Department of Health and Human Services (HHS) released a final rule on the Exchanges, to be published in the Federal Register on March 27, 2012. Scope of the Exchange Regulations
The final rule combines policies from two separate Notices of Proposed Rulemaking (NPRMs) published in summer 2011. It sets forth:

• The minimum federal standards that states must meet if they elect to establish and operate an Exchange, including the standards related to individual and employer eligibility for and enrollment in the Exchange and insurance affordability programs;
• Minimum standards that health insurance issuers must meet to participate in an Exchange and offer qualified health plans (QHPs); and
• Basic standards that employers must meet to
  participate in the Small Business Health Options Program (SHOP).

Consistent with the scope of the Exchange establishment and eligibility proposed rules, this final rule does not address all of the Exchange provisions in the Affordable Care Act. Instead, more details will be provided in future guidance and rulemaking, where appropriate.Exchange Options
Exchanges will perform a variety of functions, including:

• Certifying health plans as QHPs to be offered in the Exchange;
• Operating a website to facilitate comparisons among qualified health plans for consumers;
• Operating a toll-free hotline for consumer support, providing grant funding to entities called “Navigators” for consumer assistance, and
  conducting outreach and education to consumers regarding Exchanges;
• Determining eligibility of consumers for enrollment in qualified health plans and for insurance affordability programs (premium tax credits, Medicaid, CHIP and the Basic Health Plan); and
• Facilitating enrollment of consumers in qualified health plans.

Flexibility For States
HHS intends to give states substantial discretion in designing and operating their Exchanges. Standardization between states is provided where the Affordable Care Act requires or where there are compelling practical, efficiency or consumer protection reasons. Also, the federal government will establish an Exchange in each state that refuses to do so.