The Huffington Post has broken the news that yet another incarnation of the public could be coming into favor with Senate Democrats: a plan that would begin with a robust, national public plan, but allow state governments to “opt out” of the system should they chose. It’s worth noting that the compromise carries echoes of the Cass Sunstein-Richard Thaler school of policy design—the government would try to nudge things in the right direction by making the public plan the default option, but gives states the ability to opt out if they had the impetus, energy, and will to exclude themselves. It seems like the kind of choice that might appeal to Peter Orszag, the White House’s resident disciple of behavioral economics.
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