NewsRadio 920 WHJJ and the Associated Press

PROVIDENCE, R.I. (AP) — Rhode Island's health insurance marketplace has backtracked on a request for $4.6 million that had surprised lawmakers after no state money was included in the governor's proposed budget.

Director Christine Ferguson said Tuesday the state won't need to pony up funds for HealthSource RI for the fiscal year beginning July 1.

She had told reporters last week that HealthSource had permission to use tens of millions of federal funding beyond the original deadline of year's end, but learned recently that federal officials wanted the state to chip in $4.6 million.

Ferguson says federal officials contacted her Friday with concerns over discussion in Rhode Island about possibly abandoning the marketplace and switching to the federal exchange. She says with their "cooperation and support" HealthSource won't immediately need state money.