On July 2, Gov. Tom Wolf signed into law a bipartisan bill creating the Pennsylvania Health Insurance Exchange Authority to operate and maintain a state-based health insurance exchange. In less than one month, with Pennsylvania’s Insurance Commissioner Jessica Altman at the helm, the bill (first introduced to the House Insurance Committee on June 4) navigated a labyrinth of legislative scrutiny with near unanimous support and approval. With the aim of lowering premiums and increasing access to health insurance, the newly created exchange will assist individuals with the purchase of health insurance plans in the individual and small group markets. This momentous effort brings Pennsylvania in line with around a dozen other states that operate their own health insurance exchanges.

The legislation proposed by the Pennsylvania Insurance Department was introduced by Rep. Bryan Cutler, R-Lancaster, who serves as House majority leader. Rep. Anthony DeLuca, D-Allegheny, proposed similar legislation in 2013 and 2015, but neither bill received approval from the House Insurance Committee. (In 2015, Pennsylvania received conditional approval from the federal government to create a state exchange, but after the U.S. Supreme Court clarified that states could continue to provide subsidies on the federal exchange, Pennsylvania paused its pursuit of a state-based plan.)  Since Rep. DeLuca’s bills were introduced, vendors have developed technologies to facilitate the operation of a successful exchange, which has significantly reduced the costs associated with establishing a state-based exchange.