Crowding Out Hawaii Style

Hawaii, the only state with a universal child health care program in the country, is dropping the scheme just seven months after it launched. The reason:

“People who were already able to afford health care began to stop paying for it so they could get it for free,” said Dr. Kenny Fink, the administrator at the Department of Human Services in charge of the program. [link]

Currently, Hawaii’s families can qualify for Medicaid with incomes that are 300 percent of the federal poverty level – or about $73,000 for a family of four.  Keiki Care was designed to cover “gap” kids from families too rich to qualify for Medicaid and SCHIP.  However, according to the Honolulu Star Bulletin, about 85% of the 2,000 kids enrolled in the Keiki Care program had previously been enrolled in a private plan.

Hat tip to Grace Marie-Turner at her site.

httpv://www.youtube.com/watch?v=ATkeoBqSeGE

Elvis Presley singing “Blue Hawaii”

Comments (3)

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  1. Phil M. says:

    Thanks for the informative post!

  2. Tom says:

    Someone should alert the Commonwealth Fund, the Center for Health Systems Change, and everyone else who claims that crowd out does not occur.

  3. greencard says:

    These are not surprising my anymore, but thanks..