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.

The decision regards a key component of President Barack Obama's federal health care law.

Many states were expected Friday to tell the federal government whether they'll build the new insurance markets, called exchanges, or let Washington do it for them.

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.

Kasich 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.

The Obama administration has given states another month to decide what role, if any, they will play in carrying out the new health care law. Instead of having to declare their intentions by today, states now have until Dec. 14. Most states are still expected to announce their choices by today.