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Pennsylvania Takes the First Step Toward a State-Run Health Insurance Marketplace

June 5, 2019

Today, the Pennsylvania House Insurance Committee took the first step in establishing a Pennsylvania-based health insurance marketplace when HB 3 unanimously passed out of the House Insurance Committee.

PHAN strongly supports HB 3 and sees it as a winning proposal for Pennsylvania. Here’s why:

1. Lower Premiums

Establishing a Pennsylvania health insurance marketplace won’t cost Pennsylvania taxpayers a dime but will ultimately result in lower premiums for Pennsylvania families, small business owners, and individuals who purchase their health insurance through the marketplace. According to estimates based on current premium calculations, Pennsylvanians could save 5-10% on health insurance costs in the first few years of the new marketplace.

2. Local Oversight

HB 3 would put oversight and control of our state’s health insurance marketplace where it belongs: in Pennsylvania, not in Washington.

3. Reduced Operating Costs

Pennsylvania can run the health insurance marketplace a significantly lower cost than we are currently spending to use the federal system. The state can then use this money to reduce premium costs for Pennsylvanians who use the marketplace without spending any additional state dollars.

4. Proven, Effective Models

Initially, states may have struggled with developing and implementing their own marketplaces, but currently more than a dozen states already run one, and four more are in process of establishing one. Pennsylvania will benefit from the best practices & technological improvements gained from their experiences.

Stay tuned for more information about HB 3 and Pennsylvania’s proposed health insurance marketplace.