On April 12, 2012, Governor Andrew Cuomo issued Executive Order No. 42, titled "Establishing the New York Health Benefit Exchange" ("Order"). The purpose of the Order is to require the State of New York and its administrative agencies to take the steps necessary to establish an American Health Benefit Exchange and Small Business Health Options Program in New York (together, the "Health Benefit Exchange"). The Governor's action was taken in response to the mandate contained in Section 1311 of the Patient Protection and Affordable Care Act (P.L. 111-148) ("ACA").

Overview

The Governor issued the Order because the New York Legislature failed to enact legislation to begin development of the Health Benefit Exchange in New York. New York becomes the second state, after Rhode Island, to use an executive order to initiate compliance with ACA's mandate to form a Health Benefit Exchange.