Pennsylvania will not set up its own health care exchange under the federal Affordable Care Act, at least not for now, Gov. Tom Corbett said Wednesday, putting the state on a course to join others led by Republicans that will let President Barack Obama's administration run its exchange.

A report issued Monday by Pennsylvania Gov. Tom Corbett's administration warned of higher taxes, program cuts, lower business growth and steeper borrowing costs because of the state's financial obligations toward the two large public-sector pension plans.