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  • From: Gene GeRue <genegerue AT ruralize.com>
  • To: "homestead AT lists.ibiblio.org" <homestead AT lists.ibiblio.org>
  • Subject: [Homestead] Health care costs, Texas and Tennessee
  • Date: Thu, 02 Dec 2004 07:42:25 -0700

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





  • [Homestead] Health care costs, Texas and Tennessee, Gene GeRue, 12/02/2004

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