Feds approve Ill. health exchange with conditions

CHICAGO (AP) — Illinois has received conditional federal approval for its plan to provide a health insurance marketplace where thousands of state residents will shop for insurance beginning Oct. 1.

U.S. Department of Health and Human Services Secretary Kathleen Sebelius issued a conditional approval letter Wednesday to Gov. Pat Quinn with a list of six conditions.

Conditions include signing a memorandum of understanding with the federal government for how the state will monitor and approve health plans sold on the exchange by March 1 and a separate memorandum of understanding for how the state will run consumer outreach activities by April 1.

Sebelius' letter acknowledges that "Illinois is working under intense timelines."

The state is partnering with the federal government to offer the online marketplace.

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