Sure sounds like he wouldn't have a problem with a public health insurance option so long as a state could opt out.
From a story in today's Gasden Times:
“If there’s something out there that might be beneficial to states, I expect states would likely opt in,” said Gov. Jim Douglas of Vermont, a Republican and the chairman of the National Governors Association. “I mean what’s the harm, they likely will conclude, it’s only an option.”
Douglas, a moderate Republican on health care issues, had previously told reporters that he didn't like the public health insurance option discussed in Washington, D.C.