State Innovation Waivers

Section 1332 of Obamacare allows HHS to grant so called "State Innovation Waivers." Such waivers, beginning in 2017, would exempt states from certain requirement of Obamacare—but only if the state plan covers at least as many people as Obamacare, for a cost at least as affordable, and coverage at least as comprehensive. Plus, the plan must not increase the federal deficit.

The Obama administration touts this waiver as giving flexibility to the states. But the requirements to gain this flexibility preclude market-based solutions.