Federal regulators approved Pennsylvanian Governor Tom Corbett's modified and somewhat controversial Medicaid expansion proposal on Thursday.

Corbett's propsal will subsidize about 500,000 low-income individuals to purchase private health insurance under the Affordable Care Act starting January 2015. It differs from the usual because it does not directly expand Medicaid in the state.

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In a statement, Corbett said that the plan will allow them to change the "financially unsustainable" healthcare initiative and let eligible citizens get access to health servic via private market.

One apparent modification is it allows subsidized individuals to be charged premiums for health coverage. From 14, the number of benefit plans will be reduced to two, reports said.

Specifically, people with earnings above 100 percent of poverty level will get premiums, which should not exceed 2 percent of household income. Those who earn an income below the poverty level will not be charged.

Payment for premiums will start in 2016. Those who fail to pay premiums will lose coverage, but will be allowed to re-enroll.

In addition, from an option given to all states, Corbett chose to have a high and a low risk benefit plans. Those who have preexisting medical conditions will be enrolled in the high risk plan.

Pennsylvania also gave a sort of incentive. Beneficiaries who put an effort to care for their health by getting regular medical consultations will be endorsed to pay less for their coverage.

One plan of Corbett's, the work search requirement for locals before getting any coverage was not approved. This controversial raised eyebrows among the Democrats.

Pennsylvania subsequently proposed to run a program that will offer job placement and training services for interested locals.

Marilyn B. Tavenner, Centers for Medicare and Medicaid Services Administrator, praised the Medicaid contract despite modifications. She also urged other states to extend their Medicaid.

Though Pennsylvania is the 28^th state to implement the Medicaid expansion, Corbett is only the 9^th Republican governor to agree on it.

Some said he agreed on the Medicaid provision to raise his chances for success in the November elections.

TagsTom Corbett, Pennsylvania, Medicaid, Medicaid expansion, Centers for Medicare and Medicaid Services, Affordable Care Act