Ohio Governor John Kasich has decided that the state will not run its own health exchange under the Patient Protection and Affordable Care Act (PPACA). In the absence of a state-run exchange, the federal government will administer Ohio’s program. Health exchanges, created by the PPACA, are described as “marketplaces” in which consumers can compare and purchase private insurance plans based on their individual needs.
Among the factors in his decision, Gov. Kasich cited a lack of flexibility granted to states to run their own exchanges, as well as the cost to operate such an exchange. After studying its options, the Kasich Administration estimates the cost for Ohio to establish an exchange at $63 million and $43 million annually to administer.