Under the Patient Protection and Affordable Care Act, an online marketplace to sell health coverage to consumers and small businesses and screen users eligible for subsidies must be set up in every state, and the exchange can be run by the state, the federal government or in partnership between the two.
Gov. Beshear opted for the state to design, build and operate the exchange using federal grants, but the lawsuit filed by Tea Party member David Adams alleged the executive order did not gain proper approval from the state legislature.
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