LANSING (WKZO) -- A committee has nixed a proposed Michigan health exchange.

The creation of a state-based health exchange, mandated by the federal Affordable Care Act, was shot down by the state House's Health Policy committee Thursday.  The move sets up the possibility that the federal government will come in and set up the exchange for the state.

There is still time for Michigan to work out a deal as the deadline for states to apply to the federal government to set up their own exchange is December 14th.