Governor Tom Corbett announced on Wednesday, December 12, 2012, that Pennsylvania will be one of more than 30 states that will allow the federal government to operate its expanded health exchange.
In recent testimony made before the House Energy and Commerce Subcommittee on Health, Gary Cohen, director of the Center for Consumer Information and Insurance Oversight declared, “15 states have told the administration they will operate exchanges, 11 others have opted for versions that will require major involvement by the federal government.” The remaining states have rejected the health exchange altogether and will allow the federal government to implement and operate the program.
In a press release, Governor Corbett stated, “For two years my administration has been engaged in careful planning around the implementation of the Affordable Care Act, continually seeking guidance from the federal government… Until this week, less than five days before the deadline for a state-based exchange decision and blueprint, we received little acknowledgement of those questions. Even Health and Human Services Secretary Sebelius recently admitted on a call with governors that the regulations released a few weeks ago were not final and that more drafts are to be expected.” It should be noted, the decision to operate the exchange can be made on a year-by-year basis.
Governor Corbett continued, “Healthcare reform is too important to be achieved through haphazard planning. Pennsylvania taxpayers and businesses deserve more. They deserve informed decision making and a strong plan that responsibly uses taxpayer dollars. Therefore, I have decided not to pursue a state-based health insurance exchange at this time.”
The Pennsylvania Manufacturers’ Association applauds this conclusion. More actions regarding the federal health care law are pending, which necessitates careful economic analysis as further decisions are made. In November, the Governor said implementing the exchange could cost as much as $100 million.