CARSON CITY, Nev. — Nevada is taking steps toward leaving the federal and setting up a separate exchange operated by the state.

The Nevada Appeal reports that the Legislative Interim Finance Committee on Friday authorized state officials to spend $1 million to prepare a request for proposals and find a private provider.

Heather Korbulic, executive director of the state system, says changes are needed because is steadily raising the rates it charges states that link their front-end systems to the federal exchange.

Korbulic says the federal rate increases by 2019 will leave the state with almost nothing to run the front-end system.

Nevada tied its state exchange to the site after an to build a state site using Xerox as a contractor failed, but Korbulic says several vendors now have proven systems.

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