Gov. Wolf signs law to create state-based health insurance exchange

Gov. Tom Wolf signed into law Tuesday legislation by House Democratic Leader Frank Dermody (D-Allegheny/Westmoreland) and House Republican Majority Leader Bryan Cutler (R-Lancaster) to establish a state-based health insurance exchange.

Under the new law, consumers who purchase individual or family health insurance on the federal health exchange set up by the Affordable Care Act will be able to buy the same product from an exchange based in Pennsylvania.

“This new law’s going to help more than 400,000 people who struggle to afford good health insurance for themselves and their families,” Dermody said. “The work to get this finished was a fantastic example of bipartisan action to do something good for people who can use it.”

Dermody said that the state Insurance Department would be able to manage the marketplace more efficiently than the federal exchange, and the savings will be invested into a reinsurance program for high-risk patients. He noted that because the new state entity will be a full partnership with the federal government, it will require no new taxes or assessments.

“It’s a bipartisan solution to protect people’s health and make the dollars we spend on health care here in Pennsylvania go much further,” Dermody said.

The new law took effect with Wolf’s signature Tuesday.