Opportunity Information: Apply for IE HBE 21 001
The State Exchange Modernization Grant Program is a time-limited federal funding opportunity created by the American Rescue Plan Act of 2021 (ARPA) to help state-based Affordable Care Act (ACA) Marketplaces (called "Exchanges") quickly modernize and update the systems they use to run eligibility, enrollment, and related operations. The core purpose is practical and compliance-driven: provide resources so State Exchanges can upgrade technology, programs, or operational tools to ensure they meet all applicable federal requirements, with particular emphasis on implementing ARPA changes that increased premium financial assistance for certain taxpayers for Plan Years 2021 and 2022 when enrolling in qualified health plans through an Exchange. In other words, the funding is meant to help Exchanges adapt their platforms and workflows so consumers receive the correct, updated subsidy amounts and the Exchange remains aligned with current rules.
This opportunity is structured as a limited competition Notice of Funding Opportunity (NOFO), meaning it is not open to the general public or a broad range of organizations. Only State Exchanges that have already been approved or conditionally approved by the U.S. Department of Health and Human Services (HHS) under specific federal regulations (42 CFR 155.105 and 155.106) are eligible to apply. The eligibility definition is also broad enough to include different operational models of State Exchanges: those that operate their own eligibility and enrollment technology as well as State Exchanges that rely on the Federal platform under the arrangement described at 42 CFR 155.106(c). The key eligibility requirement is the Exchange's approval or conditional approval status as of the application due date.
Funding is provided through cooperative agreements, which typically indicates a closer working relationship with the federal awarding agency than a standard grant, often involving ongoing coordination, guidance, and oversight from the Centers for Medicare and Medicaid Services (CMS). CMS planned to make up to 21 awards nationwide, with total program funding capped at 20,000,000. The expected funding level was up to 1,333,333 per successful applicant, depending on available funds and the strength and completeness of the application. The assistance is intended to be used for modernization or updates to systems, programs, or technologies used by the Exchange, particularly where those updates are necessary to implement ARPA-related subsidy enhancements and any other applicable compliance obligations.
The timeline for the opportunity reflects the urgency of implementing ARPA changes. The NOFO was created on June 21, 2021, with an original application closing date of July 20, 2021. The period of performance runs from the date of award through September 9, 2022, giving recipients a defined window to complete upgrades, implement changes, and ensure their systems and operations meet required standards within that timeframe.
In summary, this grant program (Funding Opportunity Number IE HBE 21 001; CFDA 93.525) is a CMS-administered, ACA-related modernization effort aimed specifically at state-based Exchanges that are already federally approved or conditionally approved. It provides targeted, short-duration funding to help Exchanges update technology and operations so they can correctly administer enhanced ARPA financial assistance for consumers and remain compliant with federal Exchange requirements.Apply for IE HBE 21 001
- The Department of Health and Human Services, Centers for Medicare Medicaid Services in the affordable care act sector is offering a public funding opportunity titled "State Exchange Modernization Grant Program" and is now available to receive applicants.
- Interested and eligible applicants and submit their applications by referencing the CFDA number(s): 93.525.
- This funding opportunity was created on Jun 21, 2021.
- Applicants must submit their applications by Jul 20, 2021 Please refer to the Notice of Funding Opportunity. (Agency may still review applications by suitable applicants for the remaining/unused allocated funding in 2026.)
- Each selected applicant is eligible to receive up to $1,333,333.00 in funding.
- The number of recipients for this funding is limited to 21 candidate(s).
- Eligible applicants include: Others (see text field entitled Additional Information on Eligibility for clarification).
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State Exchange Modernization Grant Program (ARPA) - FAQs
What is the State Exchange Modernization Grant Program?
The State Exchange Modernization Grant Program is a time-limited federal funding opportunity created by the American Rescue Plan Act of 2021 (ARPA). Its purpose is to help state-based Affordable Care Act (ACA) Marketplaces (also known as "Exchanges") modernize and update the systems and operational tools they use for eligibility, enrollment, and related functions.
What is the main purpose of this grant?
The core purpose is practical and compliance-driven: to provide resources so State Exchanges can upgrade technology, programs, or operational tools to ensure they meet applicable federal requirements. A major emphasis is implementing ARPA changes that increased premium financial assistance for certain taxpayers for Plan Years 2021 and 2022 when enrolling in qualified health plans through an Exchange.
What kinds of work is the funding intended to support?
The funding is intended to support modernization or updates to the systems, programs, or technologies used by the Exchange. This includes updates needed so consumers receive correct, updated subsidy amounts under ARPA and so the Exchange remains aligned with current federal rules and compliance obligations.
Is this funding opportunity open to the general public or to any organization?
No. This is a limited competition Notice of Funding Opportunity (NOFO), meaning it is not open to the general public or a broad range of organizations.
Who is eligible to apply?
Only State Exchanges that have been approved or conditionally approved by the U.S. Department of Health and Human Services (HHS) under federal regulations at 42 CFR 155.105 and 42 CFR 155.106 are eligible to apply.
Do different models of State Exchanges qualify?
Yes. The eligibility definition includes different operational models, including State Exchanges that operate their own eligibility and enrollment technology and State Exchanges that rely on the Federal platform under the arrangement described at 42 CFR 155.106(c). The key requirement is the Exchange's approval or conditional approval status.
What is the key eligibility requirement as of the application deadline?
The key eligibility requirement is that the Exchange must be approved or conditionally approved as of the application due date.
What type of federal funding mechanism is used for this program?
Funding is provided through cooperative agreements. This typically indicates a closer working relationship with the federal awarding agency than a standard grant, often involving ongoing coordination, guidance, and oversight from the Centers for Medicare and Medicaid Services (CMS).
Which federal agency administers this opportunity?
The program is administered by the Centers for Medicare and Medicaid Services (CMS).
How many awards were expected to be made?
CMS planned to make up to 21 awards nationwide.
What is the total funding cap for the program?
Total program funding was capped at 20,000,000.
How much funding could each successful applicant expect?
The expected funding level was up to 1,333,333 per successful applicant, depending on available funds and the strength and completeness of the application.
What does the program prioritize within modernization efforts?
The program places particular emphasis on implementing ARPA changes that increased premium financial assistance for certain taxpayers for Plan Years 2021 and 2022, ensuring Exchanges can correctly administer updated subsidy amounts for consumers enrolling in qualified health plans.
When was the NOFO created?
The NOFO was created on June 21, 2021.
What was the original application closing date?
The original application closing date was July 20, 2021.
What is the period of performance for this grant?
The period of performance runs from the date of award through September 9, 2022.
Why is the timeline for this opportunity relatively short?
The timeline reflects the urgency of implementing ARPA changes, especially the premium financial assistance enhancements affecting Plan Years 2021 and 2022.
What is the Funding Opportunity Number for this program?
The Funding Opportunity Number is IE HBE 21 001.
What is the CFDA number associated with this opportunity?
The CFDA number is 93.525.
What is meant by "State Exchanges" in this context?
"State Exchanges" refers to state-based ACA Marketplaces that have been approved or conditionally approved by HHS under applicable federal regulations, including Exchanges operating their own technology as well as those using the Federal platform under permitted arrangements.
What is the overall goal for consumers and enrollment operations?
The overall goal is to help Exchanges adapt their platforms and workflows so consumers receive the correct, updated premium subsidy amounts and so eligibility and enrollment operations remain compliant with federal Exchange requirements.
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