States may get second chance at insurance exchange

August 23, 2011 - 1:45 PM

HELENA, Mont. (AP) — The Obama administration says states that have not adopted their own insurance exchanges may get a second chance to avoid one run by the U.S. government.

Only 11 states have fully embraced the idea of taking federal money to set up their own state-run insurance exchange, a key part of Obama's health care overhaul designed to help uninsured people buy coverage from a choice of plans with federal tax credits.

But states that have been slow to accept the idea, or outright rejected it in resistance to the law, will have another chance.

U.S. Department of Health and Human Services officials told Montana legislators Tuesday that the agency is working on a new partnership model to let state agencies help run the exchange without the need to get legislative authorization.