Yesterday the President spoke to a group of governors and explained to them that if they really didn’t want their states to be included in the federal Affordable Care Act, there is a way to opt out —
“Beginning in 2017, if you can come up with a better system for your state to provide coverage of the same quality and affordability as the Affordable Care Act, you can take that route instead,” Obama told the governors.
And Obama said he supported moving that date up to 2014, as proposed by Sens. Ron Wyden, D-Ore., and Scott Brown, R-Mass., to “give [governors] flexibility more quickly, while still guaranteeing the American people reform.”
In other words, they can opt out “if your state can create a plan that covers as many people as affordably and comprehensively as the Affordable Care Act does, without increasing the deficit,” the President said.
We’ve talked about this before. Basically, the deal is that if a state can come up with a way — any way — to insure the same percentage of citizens, with comparable coverage, at no additional cost, they are free to do that, and they can opt out of the ACA, mandate and all.
So far, the reaction from the “free market” libertarian right is a big howl of “that’s not fair!”
Peter Suderman of Reason‘s Hit & Run explains:
But the supposed flexibility the opt-out provision gives the states to innovate is fairly limited. Theoretically, they can get out of the mandate. But to do so, they have to submit a proposal that is judged to cover the same number of people, for the same cost (or less), with the same benefit and coverage levels as mandated in the law. That will make it easier for states—like Sen. Bernie Sanders’ home state of Vermont—to experiment with, say, single payer at the state level. But the high bar for coverage set by ObamaCare means that proposals that would rely on higher levels of cost-sharing, on increased use of catastrophic insurance, on allowing consumers to choose what benefits they actually want to pay for are less likely to pass muster.
I’m not even entirely sure how states will get out of the mandate. If, as is my preliminary understanding, they are required to keep some form of guaranteed issue and community rating—insurance regulations requiring insurers to sell to all comers and prohibiting discrimination based on preexisting conditions—then patients will have even less incentive to purchase insurance.
In other words, if you actually want to set up a system in which most citizens can obtain comprehensive insurance coverage, your options are single payer or something like the Affordable Care Act, mandate and all. Even the libertarians admit that. Of course, in their minds, it’s better to have some gawdawful Rube Goldberg mess of a system that is eating our economy and doesn’t cover a large part of the population, so long as markets are free.