HELENA, Mont. (AP) — A Montana nonprofit group is planning to apply for federal funding to offer a health insurance alternative in the state.

The group includes former state auditor John Morrison. It will apply for a portion of the $3.8 billion set aside in President Barack Obama's health care overhaul for options to large health insurers.

The Montana Health Cooperative would be set up as a co-op, part of the health care overhaul that gives funding for insurance competition.

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