Pennsylvania Moves to Implement State-Based Health Insurance Exchange
July 2019 ~
The governor of Pennsylvania recently signed legislation that will provide the state with the authority to implement a state-based marketplace, called the Pennsylvania Health Insurance Exchange Fund.
On July 2, Governor Tom Wolf signed House Bill 3 into law which, in conjunction with a federal waiver, will also enable a new reinsurance program toward significantly lowering premiums for residents purchasing health insurance through the individual market.
The estimated cost to operate the new, online state-based healthcare exchange is estimated to cost the state approximately 30 million dollars a year -as opposed to the current one run by the Federal Government, which costs Pennsylvania 90 million dollars a year.
Governor Wolf estimates there will be around 400,000 consumers purchasing insurance in the marketplace and says those residents will save as much as 10% on health premiums and will gain greater access to affordable insurance.
“It’s pretty rare for a program to come along where we can save people money without spending more, but that’s exactly what this program does,” stated Governor Wolf, adding, This Bill is a huge step forward toward making health insurance affordable and effective for all Pennsylvanians.”
Open Enrollment in Pennsylvania will begin in fall of 2020. The state-based exchange is projected to be operational and ready for implementation January 1, 2021.