Hawaii quickly drops universal health coverage for children
Filed under: Insurance, Health
I'm no fan of universal health coverage ideas. I think that they simply attempt to "make someone else pay" for you and your family's health insurance and health care needs. I know that health care and insurance can be expensive, but they're one of the facts of life. If you're going to have a family, you owe it to them to be responsible and make sure their health care needs are covered. That means bearing your own burden for the costs, just like consumers ought to be bearing their own costs for feeding their families, putting a roof over their heads, clothing them, fixing the car, putting gas in the car, and all of life's other necessities.
So the concept of universal health care seems to encourage irresponsibility, and Hawaii offers a very quick look into how that's so. The idea is simple: If someone else is going to pay your way for you, why be responsible and pay your own way? After just seven months in existence, Hawaii is dropping it universal health coverage for children because most of the enrolled children didn't need the coverage in the first place.
Consumers played the system. Of the 2,000 children enrolled, most already had insurance coverage, but their parents dropped that coverage so they could get the "free" state plan. (I put free in quotes because it's not free. Someone has to pay for it!) Hawaii's plan was designed to ensure that children without health insurance coverage (read: needy kids) would have it.
I can't say I'm surprised at this, since it fits into my theory that consumers aren't going to be responsible for themselves when someone else is there to foot the bill. I know that our health care system isn't perfect and it's expensive. But I also know that consumers need incentives to be responsible. Consumer-driven plans like health savings account are a step in the right direction because they encourage consumers to spend health care dollars wisely, and offer a tax deduction in return.
About a year ago, there was a big push by some Wisconsin lawmakers to create universal health care in our state. What would that have done for me, a responsible consumer who purchases her own health insurance and wisely uses a high deductible plan to control costs? It would have significantly decreased the quality of my coverage (read: worse benefits) and would have more almost quadrupled my cost. I don't mind the concept of finding a way to pay for coverage for those truly in need of a last resort. But to punish me in that way, for essentially daring to be a responsible consumer for the last 10 years is completely unfair.
I don't really know the answer to providing health coverage for the truly needy. I do know that we need to create a system which rewards responsibility. We shouldn't have a system in which allows someone to say "I can't afford coverage for my family," when what they really mean is "I don't want to pay for health care. Let someone else pay it for my family."
Tracy L. Coenen, CPA, MBA, CFE performs fraud examinations and financial investigations for her company Sequence Inc. Forensic Accounting, and is the author of Essentials of Corporate Fraud.
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Reader Comments (Page 1 of 1)
10-17-2008 @ 4:39PM
fahrout said...
Let's see, Tracy. If you're too poor to afford health insurance, tough luck, right? If, after working very hard to support your family, you suffer reversals and can no longer provide the necessities of life (as you define them) for your children, too bad? After all, only rich folks should be allowed to have children, right?
Until you have walked in these shoes, until you have been worried where that next house or rent payment is going to come from, until you decide you can't use your family's food money to go to the doctor so he can look at that funny-feeling lump in your breast, why don't you climb down off that elitist high horse of yours and go fuck yourself?
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10-17-2008 @ 5:28PM
Rick said...
Lets talk needy. First off we should not penalize children because their parents are lazy scumbags and want to live off welfare or ssdi. These are the same people that try to pay their phone bill with food stamps(yes they really try to every day).
Health care for children is a must so that they can learn in school and be less of a burden to the health care system down the road. If a parent without health insurance for their child wants it then we should make the parent pay at least something to offset the huge cost to the rest of the public. Garnish their public assistance or make them perform community service, such as what was done during the depression. We are rapidly becoming a welfare state with too few people working to support the "system".
The first step is to get rid of those in congress now.
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10-17-2008 @ 5:36PM
Patricia said...
Wow! That was uncalled for. Right now we are making a house payment and rent because there was no work in Ohio so we had to go where there was work-Indiana. Over 50% of our take home pay goes for these 2 items: rent and mortgage. The house has been on the market over 2 years. We cut down to one car and I grow a garden, canning (get jars at the thrift store) and freezing all I can, trying not to let one thing go to waste. We get a sandwich from Subway once every couple of months. I make everything from scratch. We buy almost every article of clothing from thrift stores and most everything we own was bought used. (I stay at home)We have a high deductible($1000) on our insurance. We rarely go to the doctors (I use a clinic) because we know they soak you AND most of the time you don't need to go. People go for the littlest things. Read and use old style remedies that don't cost hardly a thing. Eat good food (shop farmers markets and grow your own-even in an apartment) and exercise. That will take care of a lot of the complaints you may have. Oh, and throw out the TV. It makes you envious of what others supposedly have and only compounds the issues.
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10-17-2008 @ 5:47PM
Dominic said...
Shame on all of those that think health care for children should not be a universal right (yes right) for those in need of this benefit. Give the damn money to the fuck heads that screwed up the ecomony by mandating that home ownership should rise or perhaps give it to the damn Iraq's who now boast an 87 billion dollar suplus while we spend 10 billion dollar a month to finance this crazy war. I applaud anyone who thinks there children come first.
The USA is a capalist society and that is good but the curent venue of spending is way off course. The enemy that is wounded in war is afforded health care as well as the family of that individual. WHY NOT OUR CHILDREN?
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10-17-2008 @ 6:00PM
Lilly said...
Whoever enrolled the children should have checked to see if they had coverage first. The parents should have had a form to fill out stating they were not eligible for any other plan, had not dropped coverage voluntarily, etc, etc. I am betting it was wealthy parents who did this to get back at the system. But anyway, it sounds like poor planning. They should also have had a sliding scale fee based upon what income they had. I believe Obama is suggesting in his coverage that people have to pay premiums, so hopefully, if he is elected...they will have coverage again, but based upon the parent's ability to pay and also dependent upon what the employer already offers...they would need to take the employers coverage first.
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10-17-2008 @ 6:13PM
Lilly said...
Oh anyway, they should have been required to have filled out a form, and if they lied on it, it could have been considered to have been a crime...a deterrent. Also requirement to pay it back with interest, and perform community service. I guarantee they wouldn't have been tempted to do it if that would have been the case.
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10-21-2008 @ 9:05AM
localislander69 said...
this bill was flawed to begin with. hawaii is one of the few states that it is mandatory for for employers to offer it to their workers...both full and part-time (min 20 hrs a week or more). and then the welfare reciepients got free healthcare automatically thru state/federal. but if you are an adult not working because you are to lazy....to bad, so sad. why do you think we work???? so it should have stated, if your company offers it...no matter your income, a person or persons will not be able to get it. but we all have to agree...medical insurance goes up EVERY year...even if its a dollar or 2...add 52 weeks or 13 bi-weekly paychecks, it does add up.
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10-21-2008 @ 10:04AM
Rob said...
Come on man, lay off. she said none of the things you are trying to attack her for. I am sorry you have suffered hardships in your life. Newsflash! many of us have, myself included. That does not mean that there is a simplistic answer like lets go pillage the rich to answer for those hardships. Furthermore. Tracy is not necessarily rich because she is educated and has a degree in business accounting and specializes in fraud. You know, if you spent less time looking outside yourself to spin and twist the meaning of others statements and spent more time educating yourself for a higher paying job, you may begin to see that fairness works both ways. This is the United States of America, not the United States of the entitled, if you think that "the rich" have enough money to take care of you all and should then you are once again only showing your enormous ignorance for past failed social experiments and for the intentions of the founders of this country, both of which you should know something about before presuming to rip on some one who is blogging n subjects for the public's general education. I say again helping people without also setting up tyrany or without hurting others is neither simple nor is it easy. Why do you think the founders of this country set up a tri-lateral government with checks and balances. Because it had the wisdom of knowing that humans as a whole are not always angels. In fact they often are lazy and are often unethical. They also knew that laws and government assistance can only go so far to help people to have things without getting in the way of the freedom of those who can do for themselves. More specifically those who will create something from nothing and as result they will create an asset not there previous to their efforts. you sir are an example of the what 60 years of propserity in the market and inattention to public education can bring to the world. And that is rageful ignorance that threatens the greatness of this nation. I dunno, you are likley just some kid spouting off based on your choice of names. But frankly i do not care if that is the case as here and now is a good place to learn that helping people and solving society's problems is neither simple nor easy. And speaking without thinking clearly is not just silly but irresponsible and ultimately dangerous if that stupidity catches on. To quote the founding father of our country George washington, Liberty is only a generation away from extinction. and by that he meant if the lessons and values that helped make america are not learned and relearned then we are all in deep trouble. So do yourself a favor and speak on topic on which you know and seriously take a critical thinking class so you can understand when you are drawing ridiculous conclusions that do not logically follow from what you have read in order to argue like an angry mule about poor children. No one wants poor children. I am sure that tracy feels that way too, but she is not god and you are not god. If you feel so strongly about poor children perhaps you can volunteer and certainly you can "keep it in your pants" or "wrap it up" before you have sex because honestly 95 perecent of the time children are brought into poverty stricken situation, I do not think it was planned. It was just an unintended outcome of two horny poor people with more chemistry than sense. Do not believe me I do not care -- I have read the US census studies and you can too if you really care to do more than rage at a fraud expert. Ok I could go on and on but I wil not. I know i have already made my point to strongly for some as it is. But come on folks this person blogs about fraud and misuse of funds and if you do not like what she is saying before commenting, first check yourself and your reaction before you just type the first crud that come out of your mind. Like the surf punks said in one of their songs, I will not surf in your toilet if you do not piss in my pool. lets not waste readers time with fuzzy headed "Fahrout" comments that took longer to type than to be thought up.
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10-21-2008 @ 10:15AM
Rob said...
Sorry for not really checking my grammar spelling towards the end of my comment. I was running out of morning free time. And for those who think I was a bit harsh with Mr. Fahrout, I am sorry, but such soft headed logic with such reckless passion is the source of many issues that are currently deadlocked in our society today and I guess I just decided that I was going to take a bit of a stand on this one comment. My apologies for perhaps beating a dead horse a bit or wasting too much time on idiotic comments.