On March 12, 2012, the U.S. Department of Health and Human Services ("HHS") released its final rule ("Final Rule") implementing the new Affordable Health Insurance Exchanges ("Exchanges") authorized under the Patient Protection and Affordable Care Act ("PPACA"). These Exchanges are intended to establish and operate a "one-stop marketplace" in each state for individuals and small employers to obtain health insurance. According to HHS, these Exchanges will offer Americans "competition, choice, and clout. Insurance companies will compete for business on a level playing field, driving down costs. Consumers will have a choice of health plans to fit their needs, and the Exchanges will give individuals and small businesses the same purchasing power as big businesses."

OVERVIEW

The Final Rule does the following:

- incorporates public comments received by HHS on two previously published proposed rules on Exchange eligibility and establishment ("Proposed Rules";