Board Oks $72M contract to set up Nevada exchange

CREATED Aug. 15, 2012

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CARSON CITY, Nev. (AP) -- Nevada Gov. Brian Sandoval says he'd oppose tapping the state general fund or raising insurance premium taxes to pay for the long-term operation of a state health exchange mandated by the federal health care law.

Sandoval's comments came Tuesday during a Board of Examiners meeting in Carson City, where the board approved a $72 million contract with Xerox State Healthcare to set up the computer system and support operations needed to begin enrolling people by October 2013.

The bulk of the startup costs are expected to be with funded through federal grants. So far the federal government has authorized $25 million and state officials are awaiting approval on another $50 million.

After 2015, it would up to Nevada to fund the program -- if the state decides to keep it.