Pennsylvania Gov. Tom Wolf (D) said his state intends to implement a state-based marketplace for Pennsylvanians to shop for health insurance in the event that the U.S. Supreme Court strikes down the subsidies approximately 7 million middle-income people in states that did not establish their own health insurance exchanges receive to buy health insurance.
"In order to protect 382,000 Pennsylvanians from potentially losing subsidies that help them afford healthcare coverage, I have written to the federal government outlining a contingency plan to set up a state-based marketplace to ensure no one loses their health coverage," Gov. Wolf said in a statement.
His action comes as the U.S. Supreme Court is expected to rule in June in King v. Burwell, the case that will decide the fate of subsidies in states where the federal government runs the health insurance marketplaces.
Here are three things to know about Gov. Wolf's contingency plan.
1. Gov. Wolf's letter, which was sent to HHS Secretary Sylvia Burwell, does not mean Pennsylvania must set up a state-based marketplace.
2. Gov. Wolf's letter also does not mean Pennsylvania is required to submit an application, or that the state will be transitioning to a state-based marketplace.
3. The letter does, however, give the state the option of transitioning to a state-based marketplace in the event of an adverse U.S. Supreme Court ruling.
More articles on healthcare finance:
5 years in: Taking stock of 5 trends set into place by healthcare reform
Marcus & Millichap offering $117M healthcare real estate portfolio: 4 things to know