Fix Needed for State Opt-Out Provision of Public Option
McJoan at Daily Kos explains what needs to be fixed in the Senate version of the public option in the health care bill: It's the date on which the states can opt out. First,
There's no requirement of a waiting period before states can opt out, which in this political environment means the battle is taken directly to the states, because insurers will have until 2014 to get state legislatures to pass those laws. That could lead to as much as a third of country being left out, according to CBO estimates [pdf] (h/t Jon Walker).
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Here's the current language:
(3)STATE OPT OUT.—
(A) IN GENERAL.—A State may elect to prohibit Exchanges in such State from offering a community health insurance option if such State enacts a law to provide for such prohibition.
(B) TERMINATION OF OPT OUT.—A State may repeal a law described in subparagraph (A) and provide for the offering of such an option through the Exchange.
By 2014, states will have had plenty of time to pass legislation opting out, which means the public option won't ever go into effect in them.
McJoan says:
Changing the opt-out date is an amendment waiting to happen when this bill hits the Senate floor (probably) early next week, and a barring a fix there, a priority for conferees when we finally get to that point.
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