Memo to Pubs: start planning now to fill void left by Freedom-Hater-care's collapse

Ramesh Ponnuru's column today at Bloomberg looks at what will need to happen - pretty quickly  - if SCOTUS rules that tax credits don't apply to folks buying FHercare-approved plans on the federal exchange.  It's going to cause even more upheaval than we've seen so far, and Pubs ought to be ready with an alternative.

Here are the options:

At that point, Republicans will have three basic choices.

The first is one that Democrats will presumably demand: that Republicans end the hardship. State legislators and governors will be pressured to create exchanges to get their residents qualified for the tax credits, and Congress will be asked to amend the law. This would solve the immediate problem. But Republicans would and should be loath to go along because it would involve expanding a program they consider a colossal mistake.

The second choice would be to do nothing, watch a lot of people suffer, and say that it's the administration's fault and not something they're obliged to do anything about. I suspect that much of the public will, in fact, blame the administration. But Republicans also will look bad if they take this stance, and may find that the pressure to do something grows and grows. In the interim, many people will have been yanked around by the government.

The third choice, which I favor, would be for Republicans to pass bills that take care of the affected people while advancing a much more conservative and sensible set of health-care reforms. The solution, that is, is for Republicans to begin to make good on their promise to replace Obamacare.

He goes on to link to a Weekly Standard article by Yuval Levin and James C. Capretta that fleshes out how to do that, so I'll link to it as well.  The big takeaway is that the exchanges aren't a bad model per se.  The thing to do is put them on a free-market footing.  Could make for a relatively seamless transition.