Gov. Tom Corbett's administration said the federal government isn't enforcing a Jan. 1 deadline to shift tens of thousands children from a health insurance program for children to Medicaid.
Corbett's office said Monday the federal government has agreed to consider an alternate plan other than a transition in three weeks.
The administration will give details later this week about its notification to families of kids covered by the Children's Health Insurance Program, said spokeswoman Christine Cronkright.
The U.S. Health and Human Services Department said the switch is required by the 2010 federal health care law. Secretary Kathleen Sebelius offered in September, however, to cooperate in a phased-in transition.
Private insurance companies play a larger role in shaping policies under CHIP, although Medicaid provides broader health care coverage.