The new Pennsylvania Health Insurance Exchange Authority said Tuesday that it had hired GetInsured, a Mountain View, Calif., firm to set up and then operate a state-based health insurance exchange.
The new exchange will replace the federal Affordable Care Act exchange that the state has been relying on since 2014.
State officials said the authority will pay GetInsured $23.9 million to set up the system and then between $24.9 million and $29.5 million to operate it for the first six years, starting in 2021.
The state currently pays $90 million to use the federal site, Healthcare.gov; the new contract is expected to save the state more than $350 million over six years.
The law establishing the Exchange Authority, signed in July by Gov. Tom Wolf, also had a provision to create a reinsurance program designed to save consumers 5% to 10% annually on their premiums.