Waiving Federal Insurance Rules: How the Senate Bill Would Allow States to Improve Their Health Insurance Markets
The Senate health reform bill allows states to take advantage of a broad waiver authority that would enable them to regulate their own health insurance markets. By applying for a waiver under an amended provision of current law (Section 1332 of Obamacare), states would be able to set their own standards for the kinds of health plans and benefits available to their citizens, as well as the financing arrangements of these health plans.
Source: heritage.org