State Exchange Modernization Grant Program | IE HBE 21 001

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.

• 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).

Apply for IE HBE 21 001

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