If the Court rules against the administration’s illegal subsidies, it will be a victory for the rule of law–but it won’t necessarily be a victory for conservative health-care policy. My new Bloomberg column outlines a way Republicans could make it into one: by preparing an exit ramp from Obamacare for the states that have been resisting it.

If the only alternatives are doing nothing or effectively reversing the court’s decision, Republicans will split over which to choose and fight each other about it.
But there are other alternatives. . . .
Congress should advance legislation to allow states to opt out of Obamacare and into something better. Those states would then be exempt from the law’s regulations and mandates. People already on the federal exchanges in those states would keep getting their subsidies for some limited time. Going forward, though, people in those states with no access to employer coverage would get tax credits they could use to buy any state-approved coverage — whether or not it meets Obamacare’s requirements or is bought on any government-run exchange. . . .
And if supporters of Obamacare balk at the proposal — if Democratic senators threaten to filibuster it, or if Obama threatens a veto — they will have to explain that Obamacare is terrific but can’t withstand the existence of a rival model in other states.