Gov: Ohio won't set up state health care exchange

COLUMBUS, Ohio - Ohio won't set up its own health insurance exchange, but is instead opting for a partnership with the federal government to run the new insurance market.

Republican Gov. John Kasich wrote in a Friday letter to the Obama administration that states lack flexibility to build and manage their own exchanges and that setting them up is too costly. He also said that regardless of who runs an exchange, the end product is the same.

Kasich's administration has indicated for months that Ohio was leaning in this direction. State officials have noted their continued misgivings about the federal health care law, including what they say is a lack of information.

Kasich says Ohio will continue to regulate the health insurance market, oversee health plans, and make decisions around Medicaid eligibility.