Frequently Asked Questions on Allowable Uses of Section 1311 Funding for States in a State Consumer Partnership Marketplace

This Frequently Asked Question (FAQ) provides clarification about grant funding under Affordable Care Act Section 1311(a) available to states in which the federal government will operate a Federally-facilitated Marketplace (FFM), including State Consumer Partnership Marketplaces (SPMs). This FAQ is applicable to the amended Funding Opportunity Announcement (FOA) released on November 30, 2012 (“Cooperative Agreement to Support Establishment of Affordable Care Act’s Health Insurance Exchanges”), and related section 1311 (a) funding opportunities, which can be found at http://www.grants.gov - Opens in a new window , under Catalog of Federal Domestic Assistance number 93.525.

These FAQs are considered general guidance only and are in no way guaranteeing approval of funding requests. All requests for funding are reviewed for allowability, allocability, and reasonableness and other requirements set forth in the funding announcement.

Q1:  If a state is in a State Consumer Partnership Marketplace, what types of activities are allowable uses of 1311 funds?

A1: For states that are in a State Consumer Partnership Marketplace, the list in the table below outlines generally allowable activities for the use of 1311 funds. This list is not exhaustive, but provides examples of potential eligible activities. States are encouraged to consult with HHS regarding the use of 1311 funds for these and other activities before submitting grant applications or expending funds.

As CMS recently advised, Affordable Care Act section 1311(i)(6) prohibits Marketplaces from using section 1311(a) grant funds to fund Navigator grants. See 78 Fed. Reg. 20581, 20583-84: http://www.gpo.gov/fdsys/pkg/FR-2013-04-05/pdf/2013-07951.pdf.  In State Consumer Partnership Marketplaces, Navigators are a federal responsibility funded by a separate federal grant program.

Section 1311(a) grant funds are available for non-Navigator assistance programs (also known as “in-person assistance programs”) in Consumer Partnership Marketplaces because the state has elected to establish and operate outreach, educational, and assistance activities as a condition of its participation in the Consumer Partnership Marketplace and to assist in its possible transition to a State-based Marketplace.   See the 1/3/2013 Guidance on the State Partnership Marketplace.  In State Partnership Marketplaces, the non-Navigator Assistance Program will supplement – not supplant – the Navigator Program, which is administered by HHS.

Additionally, while section 1311(i)(1) directs that the federal Navigator program be a grant program, state partners in a Consumer Partnership Marketplace have the flexibility to build a non-Navigator assistance program through contracts, direct hiring, or grants, subject to state law.