RICHMOND, Va. (AP) — Gov. Bob McDonnell told the Obama administration Thursday that while Virginia will use a federally run health insurance exchange, the state intends to retain regulatory authority over insurance providers that do business with Virginians through the exchange.

McDonnell’s Feb. 14 letter to Gary Cohen of the U.S. Department of Health and Human Services confirms his December position not to commit Virginia to establishing its own exchange that would be financed and operated by the state. Instead, they could buy health insurance through an exchange that the federal government funds and runs.