Pres. Obama Offers States ObamaCare “Flexibility”
This week, Pres. Obama put his support behind a bill that will purportedly give states flexibility by allowing them to "opt-out" of certain ObamaCare provisions. But does it really provide the solution states are looking for?
This week, Pres. Obama told the National Governors Association that he backs a bill sponsored by Senators Ron Wyden and Scott Brown that will purportedly give states flexibility by allowing them to “opt-out” of certain ObamaCare provisions such as the individual mandate, minimum benefit levels, and insurance exchanges in 2014 rather than 2017 as the law currently stipulates.
Just the solution the states are looking for? Not quite. There are some pretty significant strings attached. Specifically, that states would have to show that their plans would cover as many people or more than ObamaCare, provide insurance that is as comprehensive and affordable as ObamaCare, and not increase the federal deficit. But creating a state plan that will provide as much or more insurance coverage than the federal plan that requires everyone to purchase insurance with penalties for not doing so is no small task. Michael Cannon of the Cato Institute explains:
No such state plan can make a dent in the federal laws that are fueling the relentless growth in the cost of health care (see Medicare, the federal tax treatment of health care, etc.). Therefore, the only way that states could cover as many people as ObamaCare does is by using ObamaCare’s tactic of forcing people to buy exorbitantly costly health insurance. And if they’re not going to use an individual mandate, the only remaining option is a single-payer health care system.
States need flexibility to address the needs of their unique and dynamic Medicaid populations, but the Wyden-Brown legislation is not the answer.