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
Childrens 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 states population and
consumes nearly 33 percent of Tennessees 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.