Senate OKs bill to set up health insurance exchange

OLYMPIA — Washington state Senators approved a bill Wednesday night that begins to lay the ground work for the federal health care overhaul in this state.

Senators approved on a 27-22 vote setting up a state health insurance exchange — a public-private association designed to promote competition and drive down costs for individuals and smaller businesses when the federal law is fully implemented.

Under the 2010 Affordable Care Act, states are required to set up these exchanges by Jan. 1, 2014.

Kent Democratic Sen. Karen Keiser says that lawmakers are taking this step to avoid the federal government to make decisions for the state. Under the federal law, the federal government will establish the exchange if the state fails to do so.

The constitutionality of the federal care health care overhaul law is being challenged by more than two dozen attorneys general, including Washington’s Rob McKenna.