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GAO Releases Study on Exchange Grants

The U.S. Government Accountability Office (GAO) released a report on the U.S. Department of Health and Humans Services’ (HHS’) process for awarding and overseeing the Affordable Care Act’s exchange and rate review grants for states. GAO found that by March 27, HHS had awarded approximately $3.8 billion in exchange and rate review grants to states. States have used those funds to develop their health benefit exchanges and enhance rate review capabilities, with the bulk of the grant funding used to develop exchange information technology systems. Additionally, GAO noted that HHS has used a number of mechanisms to oversee the grant funds and the department has yet to identify any misuse of funds or compliance issues.

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