Colorado Senate signs off on health exchange

By: Associated Press Email
By: Associated Press Email

DENVER (AP) - A divisive proposal to set up a new Colorado health insurance marketplace won initial approval in the Democratic state Senate Monday.

However, the prospects for the health insurance exchange are murky in the Republican House.

An exchange allows individuals and small businesses to pool together for lower health insurance rates. The federal health care law requires states to set up health insurance exchanges, or the federal government will set up exchanges for them.

Some opponents of the new health care law argue that states should resist the exchange mandate. Three Republican Senators argued unsuccessfully against the exchange idea Monday. It's unclear whether the GOP House will embrace the bill. Many Republicans say an exchange would mean surrendering to the federal health care law.

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