The Department of Health and Human Services yesterday approved Colorado's Section 1332 State Innovation Waiver amendment request to create the "Colorado Option," a state health plan starting in 2023. Section 1332 of the Affordable Care Act allows states to apply for a waiver to pursue innovative health coverage strategies. Colorado is the first state to adopt the waiver to introduce a state-based health insurance option. The state projects about 32,000 residents will gain coverage under the amended waiver by 2027.

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