Filed Under:Health Insurance, Individual Health

Pennsylvania forgoes state exchange

Governor tells Secretary Sebelius it cannot proceed at this time; thus, will get federal exchange

Gov. Tom Corbett in Harrisburg, Pa. (AP Photo/Daniel Shaknen)
Gov. Tom Corbett in Harrisburg, Pa. (AP Photo/Daniel Shaknen)

Pennsylvania took itself out of health insurance exchange limbo today by telling Health and Human Services (HHS) Secretary Kathleen Sebelius that it will not move forward with establishing a state-based health exchange at this time because of too many uncertainties to allow for planning an exchange.

The letter was written by Gov. Tom Corbett and dated Dec. 12, and now allows HHS to set up a federally facilitated exchange in Pennsylvania.

Consedine, a member of the Federal Advisory Committee on Insurance (FACI), also formed and chairs an NAIC panel on regulatory alternatives to state-based exchanges. Its members are largely those states, like Wisconsin and Kansas, who anticipate a federal exchange as they have decided not to move forward with the state exchange model for now. 

The group, the Health Care Reform Regulatory Alternatives Working Group, vice-chaired by Wisconsin Insurance Commissioner Ted Nickel, addresses the concerns of the many states that are expected to have the federal government work in concert or in full with them to create the PPACA-mandated health care exchanges.

Additionally, HHS will seek to harmonize exchange policy with existing state programs and laws wherever possible, the document stated. 

“For example, qualified health plans (QHPs) that will be offered in a federally facilitated exchange must be offered by issuers that meet state licensure and solvency requirements and are in good standing in the state and QHPs will be subject to requirements that apply to all individual and small group market products such as the proposed market rules.”

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Nichole Morford

Nichole Morford
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