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Ruling could lead Pennsylvania to create health care exchange

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Ruling could lead Pennsylvania to create health care exchange

Pennsylvania officials intend to set up a state health insurance exchange if the U.S. Supreme Court strikes down IRS rules that authorize federal premium subsidies to lower-income uninsured individuals obtaining coverage in the federal exchange.

“In order to protect 382,000 Pennsylvanians from potentially losing subsidies that help them afford health care coverage, I have written to the federal government outlining a contingency plan to set up a state-based marketplace to ensure that no one loses their health care coverage,” Pennsylvania Gov. Tom Wolf said Friday in a statement.

Pennsylvania's notification to the U.S. Department of Health and Human Services does not require Pennsylvania to set up an exchange, but gives the state the option to do so in the event the high court strikes down the IRS rules. States had until May 1 to notify federal regulators in order to have the option to move to a state exchange next year.

“My letter does not mean that Pennsylvania must set up a state-based marketplace. However, it would be irresponsible not to have a plan in place to protect 382,000 people,” Gov. Wolf said.

Pennsylvania is one of 37 states that could be affected if the Supreme Court agrees with plaintiffs challenging the IRS rules. The plaintiffs contend that the Patient Protection and Affordable Care Act limits premium subsidies to those obtaining coverage in state exchanges.

More than 8.8 million people have obtained coverage in the federal exchange in the latest open enrolling period, with about 87% of those individuals obtaining subsidies to offset premium costs.

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