Executive Order: Chafee Establishes Health Exchange
Monday, September 19, 2011
In a move viewed as one of the state’s first steps toward providing health insurance for all of its residents, Governor Chafee today will issue an Executive Order establishing the Rhode Island Health Benefits Exchange, a federally mandated system that that creates a marketplace for health insurance for individuals, families and small businesses.
The Exchange essentially creates a one-stop shop for individuals, families and small businesses to purchase affordable health insurance. The state had until 2014 to create the system or the federal government would have intervened.
The Exchange is part of the Patient Protection and Affordable Care Act, which President Obama signed into law last March.
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLAST“The Exchange will give more Rhode Islanders access to affordable health coverage,” Chafee said in a statement. “There are still many decisions to be made about the specific details of how the Exchange will work. I am confident that Attorney Curran and the Board will ably guide the best design for a Rhode Island exchange.”
Exchange Board Created
In addition to establishing the Exchange, the Governor appointed a board that will oversee the project, naming U.S. Attorney Meredith “Meg” Curran as chair. Donald Nokes, President & Co-Founder of NetCenergy, will serve as vice-chair.
The Exchange Board will recommend design and policy decisions for the Exchange as it is developed. The Exchange is scheduled to start enrolling Rhode Islanders in health insurance by late 2013. The construction of the Exchange is fully paid through federal funds, for which Rhode Island will apply at the end of this month.
Lt. Governor Elizabeth Roberts, who has been heading up the Rhode Island Healthcare Reform Commission, is calling to Exchange a step forward for the state.
“Today, the Governor took a major step in fundamentally changing the status quo for how Rhode Islanders purchase health coverage,” Roberts said. “More importantly, the purchasing power of individuals, families and small businesses will be brought together in a way that will allow real changes to be made to start to moderate the sharp increases in the cost of health care.”
Board Members
The board members include nine public members and four government members. Joining Curran and Nokes on the public side is Michael C. Gerhardt, Former Health Insurance Executive, Interim Executive Director for RI agencies in transition; James Grace, President & CEO, InsureMyTrip.com; Linda Katz, Policy Director & Co-Founder, The Poverty Institute; Peter Lee, President & CEO, John Hope Settlement House; Pamela McKnight, MD (not currently practicing); Tim Melia, UFCW New England Council; and Minerva Quiroz, Case Manager, AIDS Project RI.
The government members are Steven Costantino, Secretary of Health and Human Services; Christopher Koller, Health Insurance Commissioner; Richard Licht, Director of Administration; and Michael Fine, MD, Director of Health.
The Executive Order includes a strict conflict of interest provision for Board members. The order also creates an advisory council to tap the expertise that insurers, brokers and medical providers, who are otherwise prohibited from board membership, can bring to the Exchange design and planning process.
“Governor Chafee, Lt. Governor Roberts and many Rhode Islanders have laid the groundwork for the Rhode Island Exchange to succeed in making it easier to for Rhode Islanders to get affordable health coverage,” Curran said “I look forward to getting to work putting together the best exchange to serve the needs of Rhode Island families and small businesses.”
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