WASHINGTON – United States Senator Mary L. Landrieu, D-La., today welcomed President Obama’s support of the Empowering States to Innovate Act first proposed by Sens. Ron Wyden, D-Ore., and Scott Brown, R-Mass.  The bill, of which Sen. Landrieu is an original co-sponsor, would allow states to opt out of some of the requirements in the Affordable Care Act, if they can develop a plan that would meet the same goals.

“Today’s endorsement by the president of the Empowering States to Innovate Act shows he is willing to work with states to find creative ways to improve health care throughout the country,” Sen. Landrieu said.  “The goal of the health care law is to expand affordable, quality health coverage to all Americans while reducing costs for families, businesses and government.  The bill gives states the ability to opt out of the Affordable Care Act requirements if they can demonstrate their plan could cover the same number of people, ensure the same consumer protections and keep costs within budget.  If states don’t want to participate in the Affordable Care Act, it should be because they have found a more innovative way to reach the goal of providing quality, affordable health coverage to all working Americans and their children, not because they are opting to do nothing.”
Authored by Senator Ron Wyden, Section 1332 of the Affordable Care Act – the “Waiver for State Innovation” – allows states to develop their own health reform proposals that would preempt the federal government’s effort. If a state can develop a plan that covers as many people, with as comprehensive insurance, at as low a cost, without adding to the deficit, the state can get the money the federal government would have given it for health care reform but be freed from the individual mandate, the exchanges, the insurance requirements, the subsidy scheme and large-employer penalty.
Currently, this provision goes into effect in 2017.  The Empowering States to Innovate Act would allow states to propose their alternatives now and start implementing them in 2014, rather than wasting time and money setting up a federal structure that they don’t plan to use.

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