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States may be able to Opt-out



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Oct 08, 2009 09:35 PM

States may be able to Opt-out

by HM2VikingRN Staff

of the public option.

2) Behavioral economics further suggests that default preferences are extremely powerful. Making the public option the default would probably lead to much greater adaptation than requiring states to "opt in".

3) If the public option indeed reduces the costs of insurance -- and most of the evidence suggests that it will -- than the states that opt out of it will have a pretty compelling reason to opt back in. Say that Kansas opts out of the public option and Missouri keeps it. If a Kansan realizes that his friend across the border is buying the same quality health insurance for $300 less per month, he's going to vote restore the public plan in a referendum or demand that his legislator does the same in Topeka.

4) Even in states that do opt out of the public option, the fact that voters could presumably elect later to restore it creates an extremely credible threat to the private insurance industry that will itself help to create price competition.
http://www.fivethirtyeight.com/2009/...on-purism.html


Actually this may be a very smart way to pass a reform bill AND let the states have some more input.


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No. 1
from GCTMT
Old Oct 13, 2009, 08:45 AM

Default Re: States may be able to Opt-out
hmm...I'm not so sure that's a good idea. If we get a public option with an "opt-out", my state would most certainly take advantage of it. And there are people here who really need the good health care coverage that the public option could provide.
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No. 2
Old Oct 13, 2009, 09:31 AM

Default Re: States may be able to Opt-out
I don't think it is a particularly good idea but this puts the decision to deny health care access in the hands of the local legislators. The legislators will have to opt out of the public option instead of opt in through a legislative act.

Political analysis that I have read basically calls this the call out the party of no strategy. When the citizens of the opt out states see how much less the exchange states are paying for health insurance the thought is that they will pressure their legislatures to "opt back in." It is a way of holding the obstructionists accountable to their voters.
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No. 3
from Klarian
Old Oct 14, 2009, 08:13 AM

Default Re: States may be able to Opt-out
This is a fantastic idea.

Then the people who can't seem to get insurance on their own can relocate to the states that are willing to take on that burden.

It might help California fix its problem of a declining population base.

But they might not be a reliable tax base. I might have to rethink this one.
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No. 4
from azhiker96
Old Oct 15, 2009, 11:01 AM

Default Re: States may be able to Opt-out
I could see this ending up in court with a decision that a state opting out is unconstitutional, correlate to Roe V Wade.
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No. 5
Old Oct 17, 2009, 08:01 AM

Default Re: States may be able to Opt-out
It does raise some interesting equal protection arguments...
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No. 6
Old Oct 24, 2009, 09:11 AM

Default Re: States may be able to Opt-out
"States may be able to Opt-out" . .


Yeah, right . . . ..



steph
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No. 7
from Rebel Yell
Old Oct 24, 2009, 02:02 PM

Default Re: States may be able to Opt-out
There is also some concern with states sovereignty if they do accept the government plan; read here in the Baucus Markup:

"If a state fails to adopt the changes in conformance with the new Federal minimum standards either by adopting the NAIC Model or through Secretarial approval, conflicting state laws would be preempted. In such a case, insurers would then offer coverage under Federal law and be overseen by HHS until the state adopts the necessary changes." on page 11.
"Reinsurance. As a condition of issuing commercial, major medical health insurance policies or administering benefit plans for major medical coverage in years 2013, 2014, and 2015, all health insurance issuers would be required to contribute to a reinsurance program for individual policies that is administered by a non-profit reinsurance entity that would function as described below. This requirement would be enforced at the state level in a manner consistent with new the insurance market reforms. National Association of Insurance Commissioners (NAIC) would be directed to develop a model for states to adopt. If the NAIC does not act or a state does not adopt the new requirements, new Federal regulations would preempt state laws that conflict with the new reinsurance requirements."
I believe that this is unconstitutional. We need to find different alternatives. I do like the State run idea, but it would be hard to balance.
Link to markup here:
http://finance.senate.gov/sitepages/leg/LEG%202009/100209_Americas_Healthy_Future_Act_AMENDED.pdf
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No. 8
Old Oct 25, 2009, 01:12 AM

Default Re: States may be able to Opt-out
Actually it isn't unconstitutional. Its an equal protection issue. The federal government has a duty to protect the rights of citizens by establishing consistent benefit sets. (We are all citizens of the US FIRST and then of our state of residence.)


If we don't have a consistent benefit set across states we will end up in a race to the bottom with phony coverage scheme. (Look at SD or DE. Consumer protection is essentially zero and that is why the credit card comparies locate their offices there.)

I think that we will see state level administration of the Medicare Part E option with federal funding streams.
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No. 9
from Rebel Yell
Old Oct 25, 2009, 01:36 PM

Default Re: States may be able to Opt-out
(We are all citizens of the US FIRST and then of our state of residence.)

With all due respect, the the Constitution states:

Amendment X
"The powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved tot the States respectively, or to the people."

When you speak of equal rights, it is under the Code of Law, from modern times, and therefore can be challenged in the Judicial system. It is not constitutionally valid because it is not an amendment.

In Article IV, Section 4. "The United States shall guarantee to every State in the Union a Republican Form of Government, and shall protect each of them against Invasion; and on Application of the Legislature, or of the Executive (when the Legislature cannot be convened) against domestic Violence."

It seems to me, that you prefer to follow Socialist values. Allowing the government to supply everything to the people. Be careful how you interpret things, and look into the Federalist Papers, written by the Founders. You will better be able to interpret the meaning of the Constitution and what our Country was founded for.
Socialism – 1.a. A social system in which the producers possess both political power and the means of producing and distributing goods. B. The theory or practice of those who support such a system. 2. In Marxist-Leninist theory, the building of the material base for communism under the dictatorship of the proletariat.
http://www.foundingfathers.info/federalistpapers/
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