INDIANAPOLIS (AP) – Gov. Mitch Daniels has made governor-elect Mike Pence’s position official: Indiana does not want a state-run health insurance exchange.

Pence wrote Daniels on Thursday that he opposes running an exchange because it would cost the state too much. He also largely ruled out working together with the federal government on a “hybrid” exchange, unlike other Republican governors who have warmed to the partnership.

Daniels forwarded the letter to the Centers for Medicare and Medicaid Services Friday afternoon. The Obama administration originally set a deadline Friday for states to respond, but pushed that back a month Thursday.

If Pence decides by February that a “hybrid” exchange is not viable, the federal government would come in and build and operate an exchange for Indiana.