Employee Benefit News for School, City and County Employers

PA gives federal government health exchange control

Written by Valerie Ortiz | Dec 14, 2012 1:45:00 PM

On Wednesday, Governor Tom Corbett announced Pennsylvania will not run a statewide benefits exchange, leaving the task to the Obama administration.

Corbett states setting up an exchange would be irresponsible and the federal government has left him with many unanswered questions, according to The Boston Globe.

"Healthcare reform is too important to be achieved through haphazard planning," he said. "Pennsylvania taxpayers and businesses deserve more. They deserve informed decision making and a strong plan that responsibly uses taxpayer dollars.’"

Christine Corbett, a spokesperson for the governor's office, said setting up an exchange could cost Pennsylvania between $30 and $50 million. Meanwhile, Americans for Prosperity said it would cost another $100 million in 2105, when federal funding for state exchanges is slated to end, according to phillyburbs.com.

While some state lawmakers are applauding the decision, some experts are regretting losing out on the benefits a state-run system could have brought. Pennsylvania Health Access Network's Antoinette Kraus told The Boston Globe the state could have taken advantage of the chance to create a customized, innovative exchange.

Pennsylvania is among 24 other states that have deferred to a federal exchange, according to the Kaiser Family Foundation. Nineteen have declared a state-based system and seven are planning a hybrid state-federal exchange.