Friday, October 17, 2008

Dropping Heath Care Already?

Apparently Hawaii decided it couldn't continue its universal health care. Proponents of this system were greatly disappointed, to be sure, but here are a few crucial factors everyone should pay attention to:

A state official said families were dropping private coverage so their children would be eligible for the subsidized plan.

"People who were already able to afford health care began to stop paying for it so they could get it for free," said Dr. Kenny Fink, the administrator for Med-QUEST at the Department of Human Services. "I don't believe that was the intent of the program.

and:

State health officials argued that most of the children enrolled in the universal child care program previously had private health insurance, indicating that it was helping those who didn't need it.
When you're willing to offer free care, who wouldn't want to opt for it instead of paying for their own?

Of course, this program was dropped because of funding shortfalls, even though the program only costs the state $50,000 or so a month. Keep in mind that this amount covers only about 2000 of the 3500-16,000 uninsured children the state hoped to cover. Assuming Hawaii was willing to spend the same $25 per child once it had every kid on board, that would amount to $87,500 to $400,000 a month, or $1,050,000 to $4,800,000 a year. That doesn't sound like a whole lot, considering the amount of money the federal government throws around, but it is a fair amount for a state's budget.

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