Universal Health Care Dropped in Hawaii

It seems the sole universal child health care program in the country is going by the wayside after just 7 short months. Hawaii governor Linda Lingle said "budget shortfalls and other available health care options" contributed to the demise of the health care program. According to the story, "...families were dropping private coverage so their children would be eligible for the subsidized plan."

Who'd a thunk it? Did government officials in Hawaii not consider for even a moment that people who were paying for coverage would drop that coverage to get free or reduced-cost coverage for their kids? That should have been a no-brainer, shouldn't it have? Dr. Kenny Fink at the Department of Human Services is quoted in the story as saying, "People who were already able to afford health care began to stop paying for it so they could get it for free. I don't believe that was the intent of the program." No kidding.

The universal coverage plan was intended cover every child, up to 18 years of age, who didn't have their own health insurance already. According to the story, current coverages will not be funded by the state after this month, although a private partner company, Hawaii Medical Service Association, is going to foot the bill out of pocket to maintain coverage for enrollees for the rest of this year.

Hawaii Medical Service Association spokeswoman said, "We're very disappointed in the state's decision, and it came as a complete surprise to us. We believe the program is working, and given Hawaii's economic uncertainty, we don't think now is the time to cut all funding for this kind of program."

Of course they're disappointed. The state was a cash cow for them. They had a guaranteed supply of patients and a dedicated source of revenue. No need for efficiency or to be competitive in the health care market. Taxpayers in Hawaii were paying $50,000 per month for the program. That worked out to just over $25 per child enrolled. The families of children in the program paid $7 per office visit, but nothing else for medical treatment.

Here's the key point: "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." There is no reason to believe the same thing wouldn't happen at the national level.