Business & Corporate
Pennsylvania Takes Over Online Health Insurance Exchange
Pennsylvania established its own online health insurance exchange (the “New Exchange”) under Act 42 of 2019 (the Act”) to deliver premium savings to Pennsylvanians who seek health insurance from the exchange previously operated by the federal government (the “Federal Exchange”). That Federal Exchange has served about 400,000 Pennsylvanians who purchase policies compliant the Affordable Health Care Act (“AHCA”) through Healthcare.gov. The Governor’s Office estimates that the federal government took 3.5 % of the premiums paid in the Commonwealth, totaling $94 million in 2019, to operate the Federal Exchange but that the Commonwealth can operate the New Exchange for $30 million to $35 million with reimbursement liability between 20% and 25%. Pennsylvanians who purchase coverage through Healthcare.gov under the New Exchange could benefit from a 5% to 10% reduction in premiums according to the Governor’s Office.