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[Gene GeRue <genegerue AT ruralize.com>]

Drowning In Health Care Costs?  

December 02, 2004

Texans Deserve Lifeboats Off The Health Care Titanic

By Chris Patterson

One of four Texans lack health insurance and one of five children live 
below the federal poverty threshold. For financially-strapped Texans, 
health care is a daunting challenge.

Many legislators seek to give Texans relief by expanding Medicaid and the 
Children’s Health Insurance Program. Because state-subsidized health care 
is unsustainable, this “relief” spells disaster.

Economists say Medicaid and CHIP will bankrupt every state, including 
Texas, by 2014. Signs of the impending crisis are evident in health care 
cost over-runs and budget shortfalls.

A little over 26 percent of the state budget is devoted to Medicaid, a 
portion that exceeds average national investment by 21 percent. By the end 
of 2004, $17 billion will be invested in Medicaid, covering 3,000,000 
Texans and an additional $808 million will underwrite CHIP, covering 407,000.

Because the price of government health care is expected to double within 
the next ten years, no state – not even Texas- can bankroll Medicaid and CHIP.

Before expanding enrollment and making more Texans dependent on a sinking 
program, it would be useful to look at Tennessee. Ten years ago, Tennessee 
lawmakers offered a government-subsidized health care program to residents 
not covered by other insurance.

Today, TennCare covers nearly 25 percent of the state’s population and 
consumes nearly 33 percent of Tennessee’s budget. Tripling costs forced 
lawmakers to institute draconian controls and now Tennessee rations medical 
care – 12 doctor visits per year and 6 prescriptions per month. 
Anticipating a $650 million deficit in funding for TennCare in 2005, 
Democratic Governor Phil Bredesen is proposing to jettison the program.

The rest of the article is at:
http://www.texaspolicy.com/press_releases_single.php?report_id=650