Perry officially rejects Texas insurance exchange


AUSTIN, Texas - Texas Gov. Rick Perry has officially notified the federal government that the state will not set up an exchange to help people buy health insurance.

Perry sent a letter to Health and Human Services Commissioner Kathleen Sebelius on Thursday that Washington will have to set up the exchange instead.

The health insurance exchanges are required under the Affordable Care Act. They give people without insurance an online market place to buy health insurance that suits them. People with low incomes and special needs will get subsidized insurance when the exchanges begin operating in October 2013.

The Obama Administration gave states the option of setting up their own exchanges, partnering with the federal government or letting Washington do it.

Perry calls the health care law federal overreach.


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