Microsoft is jumping into the IT market for state insurance exchanges with both feet. The infotech giant is offering "turnkey technology solutions" to help states implement their insurance exchanges by 2014. Microsoft says its services will enable states to integrate multiple aspects of health insurance delivery, including consumer portals, eligibility determinations, financial services, plan enrollment, enhanced privacy features and program administration.

Microsoft is partnering with Extend Health, Inc., which operates a private Medicare health insurance exchange and recently won the contract to provide its exchange technology and services to the state of Nevada's Public Employees' Benefits Program. Along with other partner technologies, Extend Health's premium administration, plan comparisons, and enrollment and call center operations solutions will be layered on top of Microsoft's core server and database programs.

The announcement from Microsoft comes as the Department of Health and Human Services (HHS) begins to provide additional funds to states for setting up the infrastructure to operate the health insurance exchanges. Last fall, HHS said it would fund five state insurance exchanges that were further ahead than those in other states. In July, it said the first round of grants would total $49 million, but it hasn't specified how much more will be spent in coming months.

The Affordable Care Act calls for the government to fund the establishment of the state insurance exchanges, which will provide one-stop shopping for individuals and small businesses. The Office of the National Coordinator for Health IT is supposed to establish IT standards for the exchanges--an obligation that HHS official Henry Chao recently reaffirmed, according to Government Health IT.

A Microsoft spokesman told FierceHealthIT that Microsoft will conform with all applicable technical standards and guidance and is involved in the effort to create national standards.

To learn more:
- see Microsoft's press release
- read the Government Health IT story
- read this earlier Government Health IT article on government funding of the state insurance exchanges 

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