Nevada Wins Grant Authority To Implement Health Insurance Exchange

CARSON CITY – Nevada’s health exchange, which will offer residents a one-stop shop to obtain medical insurance beginning Oct. 1, 2013, has received federal approval for grant funding to move forward with its implementation.

Jon Hager, executive director of the Silver State Health Insurance Exchange, told the board overseeing the effort today that a $50 million grant commitment has been received from the U.S. Department of Health and Human Services. The money won’t actually come to the state until claims are submitted, he said.

Jon Hager.

Much of the funding will be used to pay for a portion of a $72 million contract between the state and Xerox State Healthcare to set up and operate the information technology system needed to implement the exchange.

In total, the state has received authority for the full amount sought, $74.8 million, to set up its exchange. Nevada is one of six states to receive a Level 2 grant award for its exchange, Hager said.

Gov. Brian Sandoval has said he is supporting the development of a Nevada-based exchange so it can be tailored to fit the needs of Nevada residents. The alternative would be to have the federal government operate an exchange in the state.

The federal government is paying for more than 99 percent of the cost of implementing and operating the exchange through Dec. 31, 2014. After that, the state will have to find money to fund it.

The board voted in August to assess fees on participants to pay for the cost to operate the exchange. Sandoval has said the exchange should “stand on its own merits through user fees.”


Audio clip:

Jon Hager says Nevada has now received all of its requested authority for federal grant funding to implement the health insurance exchange:

091312Hager :20 Two grant awards.”


  • ptalbot

    I agree, that because all states are required to establish an exchange, it is in Nevada’s best interest to set up our own rather than let the federal government operate an exchange here.  Here is a related blog regarding information about the Silver State Health Insurance Exchange:

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