Gov. C.L. "Butch" Otter has decided not to pass up millions of federal dollars to help set up health insurance exchanges in Idaho because dismissing the money could allow Washington to impose a plan that may not work for Idaho.  In a statement Tuesday, Otter said it was a difficult choice to allow state agencies to apply for the federal grant funding but it was also preferable to the alternative - submitting to an insurance exchange established by the federal government.  States must set up health insurance

exchanges by January 2014 or the federal government could intervene, under the health care overhaul. The deadline for Idaho to apply for grant funding to build an insurance exchange is Sept. 30.   Idaho is among states suing over the health care overhaul.