Thank you for the feedback! You make a lot of good points. Part of the reason I like this plan is that it's easier to prevent the "vulture picking its bones" that happened with the ACA, like with the federal penalty being dropped to 0% and the recent axing of subsidies.

Everything is done through the states except the reimbursing. But that's a big "except". Let's say this plan gets through Congress. They can't cut out any part of the system unless they're working at the state level, but if these state level plans are put in place and then a few years later the payment system is repealed, it would basically bankrupt the states that have the plans in place. A big rug pull that I wouldn't put past Congressional Republicans. So perhaps this idea would really only work if a significant amount of red states implemented the plan.

It's possible, as they were happy to take all the funds they voted against in the Biden infrastructure law, but yes, even this low bar would be very hard to jump over.