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|