To make it clear Oklahoma will develop its own plan, the state will not accept a $54.6 million federal grant for setting up a system where Oklahomans could shop for health insurance, Gov. Mary Fallin said Thursday.

Fallin's announcement reverses her decision two months ago to accept the federal money.

Fallin said the state instead will use state and private money to form the system. She had no estimate of how much it would cost, but House Speaker Kris Steele said Thursday he believes a system can be developed for an amount less than the federal grant.

The state is facing a $500 million shortfall in the upcoming fiscal year. Steele said legislative budget leaders and the governor's office will have to determine where the state will get the money to pay for developing the exchange.