See here:
http://www.democraticunderground.com/discuss/duboard.ph... Obama to States: If You Can Do Health Reform Better, Go For It
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 affordableWhile 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.