2007 May 13 Sunday
Government Funds Displace Private Funds For Medical Care

Some parents cease paying for private medical insurance once their kids become eligible for cheaper publically funded medical insurance.

The Congressional Budget Office report said that for every 100 children who enroll in SCHIP, there is a corresponding reduction in private coverage of between 25 and 50 children. That's a point the Bush administration has emphasized in recent weeks as it fights Democratic efforts to triple funding for the program over the next five years.

``The uninsured are swimming around in the same pool as the insured. It's very hard to sort of reach a little net into that pool and just pick out the uninsured,'' said Peter Orszag, director of the CBO. ``You're almost inevitably going to pick up part of each.''

The bigger the public subsidies for child medical insurance become the more parents will use the government money even though they can afford to buy medical insurance out of their own pockets. This increases the tax burden on middle and upper income workers. Also, it increases government involvement in the provision of medical care and makes the medical industry more regulated in ways that likely decrease the quality of care.

The growth in the Hispanic population due to immigration will further fuel the growth of publically funded medical care. The Hispanics earn less than whites not just with the first generation of immigrants but with later generations as well. These lower income Hispanics get medical insurance at much lower rates than whites and want more medical funding from governments. So immigration feeds the growth of the welfare state.

Share |      By Randall Parker at 2007 May 13 09:35 PM  Economics Health


Comments
Big Bill said at May 14, 2007 5:05 AM:

This is the big secret that Asians and Hispanics (just to name a few) have discovered: there is no shame in taking the government for every cent you can get as long as the white folks are stupid enough to pay for it.

Move to the US and get minority business grants and loans to buy motels.

Move your parents to the US, put them on SSI and then send them back home while you continue to pick up their welfare checks for them.

Move your native village to America illegally to work in your sweatshop and teach all your brothers and sisters how to get free medical care, false identification and a free education.

And all the while you watch with a bemused grin as the mass of white folks, burdened with their puritan beliefs in self-sufficiency and independence, forgo having children and work like dogs to pay for yours!

Now, white folks are catching up. Like chumps who are now gradually sensing their chumphood, they are learning that it is better to get what you can from a government that is determined to give away your country, your posterity and your entire way of life.

So more of last year's chumps are starting to put THEIR kids on taxpayer-funded health insurance rather than not having kids at all and paying full boat for the health insurance of the one child they do have. And this is a problem?


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