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States already regulate insurance. Simply offering some sort of option for lower income is far superior than shuttling everyone into a crappy Medicaid program. I agree, in a perfect world it would be 100% free market, but healthcare is far from free market, well before Obamacare. If states want to offer some sort of regulated option to reach those that do not find a plan on their own, I don't see a problem with that. If the free market offers a better option, people can independently choose to go there.

There’s no unmet need here. Romney did the same thing in MA, when there was no faiiure of the private market to offer plans.

Because something is regulated is no excuse for a wholesale state or federal takeover of an industry. Instead, we need to move in the direction of less regulation.