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First State passes on creating its own ACA healthcare exchange

In the wake of the U.S. Supreme Court ruling that Affordable Care Act subsidies are legal, state health officials are choosing to stick with their federal exchange partnership.


Delaware Department of Health and Social Services Secretary Rita Landgraf sent a letter to federal Health Secretary Sylvia Burwell Wednesday notifying her of the First State’s decision.

Federal officials had given Delaware approval to operate a state-based health insurance exchange in June in the midst of the court battle over whether federal subsidies were constitutional.


Had that provision been struck down, it would’ve put the nearly 21,000 Delawareans receiving a tax credit through the exchange in jeopardy of losing that assistance.

Even after the decision - Landgraf said she’d examine the viability of a state run exchange.   She now says moving away from the current model is not in the state’s best interest because it would likely involve increased costs at a time when state revenues remain stagnant.

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