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

WASHINGTON—Joel Ario, head of the federal office that coordinates development of health insurance exchanges, is leaving.

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

Ario's departure was announced in an internal memo sent to employees of the Office of Consumer Information and Insurance Oversight at the Centers for Medicare and Medicaid Services at the Department of Health and Human Services. The memo, obtained by NU, was sent by e-mail to agency employees by Steve Larsen, director of the OCIIO.

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

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

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

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

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

"Tim and I will work together to recruit a state liaison to ensure that states continue to have a direct point of contact as we work together to successfully implement exchanges," Larsen says.

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

Wren led an unsuccessful effort this year to get the Alabama legislature to pass legislation implementing the exchange system and is on the board of the National Conference of Insurance Legislators and co-chairman of the Health Reform Implementation Task Force of the National Conference of State Legislators.

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

"We don't have any clear directions from HHS, and here it is Aug. 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 about exchanges during next Monday's NCSL meeting in San Antonio.

Ario also formerly served as insurance commissioner of Oregon.

Special Reports /

Joel Ario Leaving HHS Health Exchange Job

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