CHICAGO – A new nonprofit organization called Land of Lincoln Health is taking steps to offer health insurance coverage in Illinois in 2014 when President Barack Obama's health overhaul law goes into full effect.

The Metropolitan Chicago Healthcare Council announced Friday that an application it submitted has received approval for a $160 million federal low-interest loan. The loan will be used to develop Land of Lincoln Health as a so-called Consumer Operated and Oriented Plan, or "co-op."

The Affordable Care Act created co-ops as a new type of private nonprofit health insurer. The co-ops will be directed by customers.