Instead, Mr. Keck will recommend the state allow the federal government to set up the exchange. The recommendation is the latest step in formalizing objections to the exchange, according to the report. The reason for passing up the opportunity to build the exchange may be that the stakes are relatively low, the report says: If states choose not to implement exchanges themselves, the federal government is required to step in and build an exchange by 2014.
State officials say the 2014 deadline is too soon, given that exchange rules are not yet complete. If South Carolina officials do not like the federally established exchange, they can still establish their own later under rules issued by the federal health department this summer.
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