Monday, December 06, 2004

HillaryCare in Tennessee: The disaster that might have been for the entire country

For those who wonder what a 'Health Care for all' scenario would be like, check out the WSJ opinion on the Tennessee state run health care plan. It is a disaster; you need to read why and what is being done about it. Also, note that it is a DEM governor who wants to pull the plug on this albatross.//JW sends.

We think it was Justice Brandeis who said the states should be laboratories for reform. Regarding health care, Tennessee tried a decade ago and the price is now coming due. Hillary Rodham Clinton should call her pollster if she plans on carrying the state in 2008.

In 1994, Tennessee passed what was then a very hot New Democrat idea--call it government managed care--a version of the reform the former first lady was also pitching nationwide. TennCare promised the impossible dream of politicians everywhere: Lower health-care costs while covering more of the "uninsured." They got the impossible, all right. After 10 years of mismanagement and lawsuits, TennCare now eats up one-third of the state's entire budget and is growing fast. Governor Phil Bredesen, a Democrat, is preparing to pull the plug and return the state to the less lunatic subsidies of Medicaid.

The TennCare concept was for the state to operate like an HMO, providing health insurance to those who needed it and paying the premiums for those who couldn't afford it. The idea was even sold as a cost savings because it would provide "managed care" (volume discounts, preventative care, etc.). TennCare opened enrollment to hundreds of thousands of people who did not qualify for Medicaid, even to some six-figure earners. Costs quickly exploded, and despite attempts to tighten eligibility rules the program still covers 1.3 million of the state's 5.8 million people.

1 Comments:

Blogger A Red Mind in a Blue State said...

The problem with health insurance is Economics 101. The overwhelming majority of us cannot afford to pay for all the healthcare we want to receive. "Insurance" only works if there are some people paying more into the pot than they take out. In our system, where 40% of Americans are on some type of daily prescription drug, everybody wants a lot of medical care. The model just doesn't work.

Maybe we need to double the number of med schools, and drive doctor salaries down to pre- Medicare levels, where doctors, while making a relatively good living, weren't rich.

December 6, 2004 at 3:15 PM  

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