The Pennsylvania Insurance Department has submitted a grant proposal to the U.S. Department of Health & Human Services requesting about $33 million to complete the planning and design for a state-run health insurance exchange.

The department used the $1 million exchange planning grant awarded in Sept 2010 to contract with an auditing firm to analyze if a state-run exchange was appropriate for Pennsylvania, spokeswoman Melissa Fox said.

In November, based on the research, public comments and health care reform regulations, Gov. Tom Corbett approved the development of a state-based health insurance exchange. The exchanges are mandated by the Patient Protection and Affordable Care Act signed by President Barack Obama in March 2010. States can design their own exchanges or default to the federal system; all health insurance exchanges must be operational by Jan. 1 2014, according to the law.

Pennsylvania's exchange design will leverage existing state resources and promote the development of public-private partnerships, the department said.

Since the state-run exchange was approved, the insurance department has been working on the proposal for the follow-up grant, Fox said. It plans to use any grant money awarded to:

• Conduct insurance market research.
• Establish advisory groups.
• Outline regulatory framework.
• Define contractual relationships needed to develop the marketplace.
• Outline governance of the exchange.
• Design an interface for government-operated programs as part of the exchange.
• Develop a roadmap for infrastructure and technology modifications needed
• Determine financial accounting, reporting and business operations needs.

The department is planning for the exchange to be in place by February 2013, according to the grant proposal.

As the state continues to work toward a health insurance exchange, the insurance department has updated its website to provide more tools that will assist consumers when the exchange is in place, Fox said. Revised health insurance shopping guides, tips for enrollment, and a glossary of health terms are now posted online, she said.