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Pennsylvania, Delaware File to Take Over Health Marketplaces

Pennsylvania Gov. Tom Wolf's (D) administration has formally applied to take over the operation of the state's health insurance marketplace, depending on the outcome of an upcoming U.S. Supreme Court decision due in a few weeks...
June 11, 2015

Pennsylvania Gov. Tom Wolf's (D) administration has formally applied to take over the operation of the state's health insurance marketplace, depending on the outcome of an upcoming U.S. Supreme Court decision due in a few weeks.

Wolf is seeking a bulwark against the potential loss of health insurance subsidies for hundreds of thousands of state residents, which the high court could rule unconstitutional in King vs. Burwell. Wolf's Department of Insurance submitted the application to the federal government on Monday, June 1, the deadline if Pennsylvania is to move to a state-based marketplace in 2016.

Meanwhile, Delaware has become the second state, after Pennsylvania, to announce plans to create its own health insurance exchange to preserve the Obamacare subsidies if the U.S. Supreme Court's ruling in King vs. Burwell eliminates them in the states using the federal exchange.

Plaintiffs in the lawsuit before the Supreme Court say the Obama administration is unlawfully providing subsidies to people buying health insurance in Pennsylvania and the approximately 36 other states using healthcare.gov, based on one phrase in one place in the 1,000-page health insurance reform law: "established by the state."

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