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ST. PAUL, Minn.

MN gets $42.5M for insurance exchange

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The federal government has awarded Minnesota a $42.5 million grant for creating a key part of the federal health care law — the state insurance exchange.

The exchanges are expected to be an online marketplace where consumers and small businesses can comparison shop for health plans.

The grant brings the total awarded to Minnesota to about $70 million in federal money for creating an exchange.

The new head of the exchange project, Minnesota Management and Budget commissioner James Schowalter, announced the grant at a meeting of the insurance exchange task force. He said the Legislature must still approve spending the grant funds.

"But it is another significant movement and step forward for the exchange," Schowalter said.

The exchange has been controversial in Minnesota as some Republican lawmakers strongly oppose it. The governor has said no final decisions will be made about the exchange until after the November election.