Gov. Wolf Inks Bill to Create State-Run Health Insurance Exchange

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“And I’m so proud of my colleagues for recognizing this as a priority and moving it along quickly. I want Pennsylvania to be a leader on health care reform, and I want no Pennsylvanian worrying about affording the care they or their loved ones need,” he added.

Pennsylvania is joining several other states already operating their own health insurance exchanges. Technological advancements enable states to efficiently run their health insurance exchange for $30 million, significantly lower than the $98 million in fees paid by Pennsylvanians to the federal government.

Pennsylvania will use the savings from operating its own health insurance exchange to create a reinsurance fund that will directly pay for some of the health care expenses of high-cost individuals. As a result, insured Pennsylvanians on the individual market will pay lower premiums. It will also reduce the cost (approximately $2 billion) of health care premium subsidies for low-income individuals.

According to the Governor’s office, Pennsylvania consumers are expected to save up to $250 million in health insurance premiums. The state is set to start operating its own health insurance exchange as early as January 1, 2021.