Governor Haslam wants impoverished people to go out and buy private health insurance with a government subsidy. I suppose it's better than nothing but it's so obviously unrealistic. Many of these people have extremely poor literacy skills and none of them have the money for copays, deductables, etc. Just let them buy private health insurance. Sure 
Under the ACA, people making less than 250% of the FPL get part of their copays and deductibles covered by the government too, in addition to the premium subsidies. It's on a sliding scale so that people making 100% of FPL get virtually all cost-sharing covered. I would assume (which is of course dangerous when talking about Republican proposals) that these people would get the same cost-sharing subsidies.
However, Medicaid still has much lower admin costs than private insurance, so it would be cheaper and more fiscally responsible to put them there, but it's better than nothing.
