NU Online News Service, Aug. 3, 11:09 a.m.EST

WASHINGTON—Joel Ario, head of the federal office thatcoordinates development of health insurance exchanges, isleaving.

The news has prompted deep concern from state officials that thedeparture will slow down efforts to ensure the exchange system goesinto operation in 2014 as scheduled.

Ario's departure was announced in an internal memo sent toemployees of the Office of Consumer Information and InsuranceOversight at the Centers for Medicare and Medicaid Services at theDepartment of Health and Human Services. The memo, obtained byNU, was sent by e-mail to agency employees by SteveLarsen, director of the OCIIO.

Ario moved to HHS in 2009 from his post as insurancecommissioner of Pennsylvania.

Larsen says that he will work with Ario's deputy, Tim Hill, tolead the exchange development effort.

Ario will be moving back to Hershey, PA, "to be with hisfamily," says Larsen's memo.

"Joel will leave DC August 26th, but will continue to lead theexchange team through September 23^rd," it says.

The memo reflected Larsen's concern that the departure will slowdown the effort to implement the exchange system on time.

"Tim and I will work together to recruit a state liaison toensure that states continue to have a direct point of contact as wework together to successfully implement exchanges," Larsensays.

State Rep. Greg Wren, R-Ala., voiced deep concern about thedecision, saying it "causes the states again to have to pause at atime when we're working feverishly…to understand the mandates underthe PPACA."

Wren led an unsuccessful effort this year to get the Alabamalegislature to pass legislation implementing the exchange systemand is on the board of the National Conference of InsuranceLegislators and co-chairman of the Health Reform ImplementationTask Force of the National Conference of State Legislators.

Wren noted state officials had hoped to have more completeguidance from HHS by Aug. 1 than was included in the first exchangeregulation released July 11.

"We don't have any clear directions from HHS, and here it isAug. 1, and now we see a departure by Joel Ario," Wren says.

Wren said he plans to call on HHS to declare a "time out" and"invite the states to Washington" to get on the same page aboutexchanges during next Monday's NCSL meeting in San Antonio.

Ario also formerly served as insurance commissioner ofOregon.