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Gov. Tom Corbett announced Wednesday that Pennsylvania won’t set up its own state-based health insurance exchange and will instead rely on the federal government’s program. 


ennsylvania is the 28th state to default into a federal exchange.  The exchange will be an online marketplace where people and small businesses can buy health insurance.  Under the Affordable Care Act, the exchange must be set up by the beginning of 2014.  Corbett has maintained that it would be more expensive to set up a state exchange.  He says that his administration has been working for two years to come up with a cost-effective way to implement the Affordable Care Act. 


There are just a few days left for states to decide whether or not to set up their own exchanges.  Corbett says there has been a lack of clarity on the part of the Department of Health and Human Services.  Department officials are proposing that insurance companies be charged a fee of 3.5 percent of premiums to support online health exchanges.

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