Under this system, states would receive their share of insurance subsidies and administrative funding in blocks to implement their own reforms. In order to be granted a waiver to do this, a state would need to show its plan would:
* not increase the federal deficit
* provide insurance to as many people as the ACA
* provide insurance as least as comprehensive as that called for in the ACA
* provide insurance that's just as affordable
While Obama is proposing the state opt-out plan now in order to appear responsive to Republican governors complaining about the ACA, the “Waiver for State Innovation” is already a part of the health reform law. It's just now slated to become an available option for states in 2017. The Wyden-Brown plan – also championed by Democratic Sen. Mary Landreiu – would move that date back to 2014. That's the year most the ACA is scheduled to begin.
Read more:
http://swampland.blogs.time.com/2011/02/28/obama-to-states-if-you-can-do-health-reform-better-go-for-it/#ixzz1FH3xzqHE