If Obamacare Implodes

It is quite possible that in June of 2015 the PPACA, (Obamacare,) will be dealt a deadly blow by the Supreme Court. The case, King v. Burwell, challenges the legality of the federal subsidies being paid out to 4 million people in 37 states. Challengers of the law state that the IRS has no authority to pay out subsidies in states that have not set up their own exchanges, of which 37 have not. After the recent mid-term elections, many of these states are governed by Republicans, and the chance of these states creating their own exchange are next to nil.

So what should the Republicans be doing today to prepare for the possible gutting of the PPACA? (It can be argued that the law would not be gutted, but simply require it to be implemented as written.)

1.) Introduce legislation allowing states to opt out of Obamacare and into a simpler system.

2.) In the simpler system, those not offered health insurance coverage through their employers could receive a federally funded credit and purchase a state approved policy, removing ObamaCare’s coverage requirements such as maternity coverage and pediatric dental.

3.) This new federal law would require insurers to offer coverage to anyone that has been continuously covered. The insurer could not charge more for pre-existing conditions, or exclude coverage on these conditions. All other rules and regulations would be handled at the state level.

4.) States would be allowed to use their federal Medicaid monies to help those enrolled pay for private plans.

5.) Those currently receiving subsidies would continue to do so through 2015, giving the states time to set up this new, simpler approach to health insurance for all.