HHS proposes State Innovation Waivers under PPACA

The Departments of Health and Human Services (HHS) and Treasury have outlined the steps that states may pursue in order to receive a State Innovation Waiver under the Patient Protection & Affordable Care Act (PPACA).

The PPACA's State Innovation Waiver option gives states the opportunity to pursue their own strategies to ensure their residents have access to quality, affordable health insurance. Under the law, State Innovation Waivers will be available in 2017; however, President Obama supports legislation that would make waivers available to states beginning in 2014, the departments stated.

State Innovation Waivers are designed to allow states to implement policies that differ from those in the PPACA so long as they:

• Provide coverage that is at least as comprehensive as the coverage offered through health insurance exchanges--new competitive, private health insurance marketplaces.
• Make coverage at least as affordable as it would have been through the exchanges.
• Provide coverage to at least a comparable number of residents as otherwise would have been covered under the PPACA.
• Do not increase the federal deficit.

States could use a variety of strategies to innovate through a waiver, provided they meet the above requirements, according to HHS. "For example, they could develop a new system for providing tax credits, which links small business tax credits to the tax credits for moderate-income families," HHS stated.

The proposal is open for comment until May 13.