Section 1332 waivers are vital for states' efforts to expand healthcare coverage, improve affordability, and promote innovation under the Affordable Care Act (ACA).

In a report, the Director of Health Policy at the Center for American Progress (CAP), Natasha Murphy, stated that "Section 1332 waivers are a chance for states to build on the successes of the ACA and pursue innovation that best supports their needs." The requirement of streamlining the application process and providing clarity on how these waivers interact with already established programs is underlined in the report as a means of better supporting state initiatives. The report also highlights the significance of simplifying the application procedure.

With the assistance of Section 1332 waivers, states are able to address challenges in healthcare while still adhering to the essential objectives of the Affordable Care Act. The states are required to demonstrate that their proposed coverage strategies meet a number of criteria, including comprehensiveness, affordability, coverage, and fiscal neutrality, to name just a few of these requirements. In the event the waivers wind up saving the federal government money, their initial five-year terms may be extended for an additional five years.

According to the findings of the study, more than 20 states have submitted waiver requests under Section 1332 since 2017, and 19 of those requests have been approved. The first exclusions that were granted pursuant to Section 1332 were largely responsible for the stabilization of prices in regions such as Alaska and Maryland.

Increases in premium tax credits and expansions of Medicaid coverage are only two examples of the COVID-19 measures noted in the report that led to record-breaking marketplace membership and decreased rates of uninsurance. The report also highlights other COVID-19 measures that contributed to record-breaking marketplace membership and decreased rates of uninsurance.

Recent applications for Section 1332 waivers have been submitted by states like as Colorado, Washington, and Nevada. These applications are part of an effort to reduce the cost of healthcare and expand coverage. In an effort to lower rates, the state of Colorado has created both a public option and a reinsurance program. Nevada, on the other hand, is looking to achieve the same thing with the assistance of a Section 1332 waiver. Illegal immigrants were able to participate in market activities because the state of Washington opened its doors to them.