"Knowledge will forever govern ignorance

 and a people who mean to be their own governors

 must arm themselves with the power which knowledge gives."

Thursday, December 20, 2007

Children’s Health Insurance Problem Solved – “Progressives” Discover Cost Shifting

Yesterday brought great news – as of next month, the children’s health insurance crisis in New Jersey will be officially over. All uninsured children, regardless of family income, will have access to “quality, affordable healthcare insurance”. The beauty of the state’s new plan is that a federal expansion of SCHIP was not required nor was additional funding from taxpayers necessary.

Starting in January 2008, a new program will allow parents, at any income level with uninsured children, to buy into the FamilyCare program at the same rate Horizon Blue Cross-Blue Shield charges the state.

FamilyCare is currently comprised of Medicaid and SCHIP. Medicaid offers coverage for uninsured children from families with incomes up to 200 percent above poverty ($41,300 for a family of four). SCHIP offers coverage for uninsured children whose families earn up to 350 percent above the poverty line ($72,275 for a family of four). The new FamilyCare expansion plan will be available for all uninsured children regardless of family income.

As in the past, children enrolled in Medicaid will receive coverage at no cost to their parents and those covered by SCHIP will pay monthly premiums ranging from $18.50 to $125 a month, depending upon family income. The FamilyCare expansion plan will cost parents $137 a month for one child, $274 for two children or $411 for three or more kids – the same rate the state pays for SCHIP.

Today we noticed several people trying to downplay the fact that a federal expansion of SCHIP and taxpayer subsidies weren’t required to bring access to “quality, affordable healthcare insurance” to all New Jersey children. Interestingly, the topic of cost shifting has come up.

Blue Jersey’s Juan Melli in his post, Affordable Healthcare for Kids: How It's Done, points to an article in today’s New York Times and highlights this quote:

As many as 15,000 children who currently lack insurance could enroll in the program, which will take effect on Jan. 1. In contrast to comparable efforts in other states, the program would cost New Jersey nothing because Horizon, a nonprofit company, would absorb what Karen L. Clark, president and chief operating officer of the Horizon subsidiary Horizon NJ Health, said could be up to a $1 million loss in the first year.
We also noticed Horizon’s CEO, Karen Clark, was quoted in today’s Star-Ledger:

Karen Clark, president and CEO for Horizon NJ Health, said the company is enthusiastic about the partnership, even though it expects it to be a money-loser that could cost $500,000 a year.
Of course, Horizon, like any for-profit or nonprofit insurance company, can’t pay out more in claims than it receives in premiums. If the company expects to lose $500,000 to $1,000,000 on the NJ FamilyCare expansion plan, it will raise rates on other policy holders in order to achieve an overall breakeven.

Healthcare cost shifting is something we have been trying to explain for months to Blue Jersey’s resident “political scientist”, Thurman Hart - to no avail. Perhaps he and others will get it now that “progressives” have pointed out “how it’s done”.

If Horizon expects to lose, take the high-end of the estimate, $1,000,000, insuring 15,000 children at the state SCHIP rate of $137 per month, it will lose $66.67 annually per child. This means Horizon will also lose the same amount per child for those it covers under the SCHIP program. (New Jersey’s SCHIP currently covers 113,000 children.) To make up these losses, Horizon will raise rates on its private policy holders to ensure it takes enough in premiums to pay anticipated claims.

That’s called cost shifting and it happens under every government health insurance program. This is minor, only $5.56 per month, per child, comapred to other goverment programs. (A topic for another post.) But clearly, taxpayers are better off with this expanded FamilyCare arrangement than with a federal SCHIP expansion. All uninsured children, regardless of family income, will be eligible and it won’t cost taxpayers a dime more.

If Democrats in Congress had prevailed on their SCHIP expansion plans – New Jersey’s federal and state taxpayers would had to pay for it, fewer children would have been eligible and Horizon would still be raising rates on private policy holders to make up losses.

Labels: , , ,


At 11:05 PM, Anonymous Anonymous said...

A study last yearnike tn, the author in the essay read NIKE , a reporter at the Shanghai headquarters in an interview, nike chaussuressee a pr in high school to read a league plans, employees interviewed told reporters in Beijing's streets, they children to interview, the children said, "truly understand them." tn chaussures These words, if the author touches product function, brand spirit and culture is to become part of the consumer of two basic methods

At 11:05 PM, Anonymous Anonymous said...

There are spyder jackets 10 pcs of excellent Ralph Lauren multi-colored stripe big pony cheap columbia jackets. These products are more soft and comfortable for being made of breathable and durable mesh cotton .cheap polo shirtsthere are lots of colors and sizes for your choice, just pick up one you like ,it is absolutely value for money.

At 11:05 PM, Anonymous Anonymous said...

Lacoste Polo Shirts, ralph Lauren polo shirts , Burberry Polo Shirts.wholesale Lacoste polo shirts and polo ralph laurenwith great price. clothingol.com offers lot of 10 lacoste polo shirts and lot of 20 cheap polo shirts. clothingol.com offers classic fit polo shirts. polo clothing

At 11:06 PM, Anonymous Anonymous said...

Bon March¨¦ Chaussure PumaChaussure Sports Shop:baskets pumaChaussure Puma Femme,Chaussure Puma Homme,Chaussure Nike Femme,Chaussure Nike homme,nike shoxChaussure Sport et plus. Livraison Rapide.Cheap Brand Jeans ShopMen Jeans - True Religion Jeans, Women JeansGUCCI Jeans, Levi's Jeans, D&G Jeans, RED MONKEY Jeans, Cheap JeansArmani Jeans, Diesel Jeans, Ed hardy Jeans, Evisu Jeans, Jack&Jones Jeans...

At 2:54 PM, Anonymous Roland said...

To my mind one and all ought to look at this.
hotels san antonio | medical terminology | cheap flights to calgary

At 7:24 AM, Anonymous Milo said...

It won't truly have success, I believe this way.
jogos gratis | computer games reviews | free flash games | win free game | pc games download

At 9:50 PM, Blogger عبدالمنعم السيد said...

بعض الاوقات تلجأ شركة زهرة المملكه الا البيوت والمنازل وجميع الاماكن وبخاصتا محافظة عسير ان الشركة قديمة عند جوجل والدومين قديم والمستلزمات قديمه فعليكم ان تتصلوا بشركة زهرة المملكه زهقت من الكلام ي بشر من غير كلام ومن غير سلام علشان انا زهقت من الكلام للاستفسار عن اي شئ 0502829601 اطلبوا شركة زهرة المملكه ولم تخصروا شئ بل تحصلون على جميع المهامات الصعبه في حياتكم
شركة تنظيف بجازان
شركة مكافحة حشرات بجازان
شركة عزل اسطح بجازان
شركة تنظيف بخميس مشيط
شركة مكافحة حشرات بخميس مشيط
شركة كشف تسربات المياه بخميس مشيط
شركة عزل اسطح بخميس مشيط

At 9:51 PM, Blogger عبدالمنعم السيد said...

مما لاش فيه ان شركة زهرة المملكه شركة قويه وشركة قادره على الاستطاعه فهذا تكلمنا عن شركة زهرة المملكه في جميع الخدمات ماعدا التنظيف فاليوم نتكلم عن تنظيف شركة زهرة المملكه اولا شركة زهرة المملكه شركة سعوديه متخصصه في مجالات خدمات المنزل وبخاصتا التنظيف والمكافحة اتصلوا بنا الان 0502829601 جميع التنظيفات والمكافحة في الرياض والدمام
شركة تنظيف بالرياض
شركة تنظيف شقق بالرياض

شركة مكافحة حشرات بالرياض
شركة نقل اثاث بالرياض
شركة تنظيف منازل بالدمام
شركة تنظيف موكيت بالدمام
شركة مكافحة حشرات بالدمام
شركة نقل اثاث بالدمام


Post a Comment

<< Home

 Contact Us

  • Email Us
  • Blog Roll Us!



  • Atom Feed
  • Bloglines
  • Feedburner
  • Feedster
  • Add to Google
  • Add to My MSN
  • Add to My Yahoo
  • News Is Free

    Recent Posts

  • New Jersey Expands SCHIP– No Help From The Federal...
  • Inequity Continues To Grow Under New School Aid Pl...
  • The Cost of Pre-School: It’s More Than You Imagine...
  • New Jersey’s Death Penalty
  • Corzine’s “New Formula for Success” Is A Formula F...
  • Republicans Respond To Corzine’s School Spending P...
  • Corzine’s “New Formula For Success”: Forgo Propert...
  • Corzine’s “New Formula For Success” Lacks Logic, A...
  • Corzine Releases New School Spending Plan
  • Stop The Proposed New School Funding Formula Or Ki...


  • November 2004
  • December 2004
  • January 2005
  • February 2005
  • March 2005
  • April 2005
  • May 2005
  • June 2005
  • July 2005
  • August 2005
  • September 2005
  • October 2005
  • November 2005
  • December 2005
  • January 2006
  • February 2006
  • March 2006
  • April 2006
  • May 2006
  • June 2006
  • July 2006
  • August 2006
  • September 2006
  • October 2006
  • November 2006
  • December 2006
  • January 2007
  • February 2007
  • March 2007
  • April 2007
  • May 2007
  • June 2007
  • August 2007
  • September 2007
  • October 2007
  • November 2007
  • December 2007
  • January 2008
  • February 2008
  • April 2008
  • November 2008
  • January 2009
  • August 2009
  • September 2009
  • February 2012

    Online Journals

  • National Review

  • Opinion Journal

  • Real Clear Politics

  • Weekly Standard

  • Blog Roll

  • A Blog For All
  • Althouse
  • Ankle Biting Pundits
  • Barista of Bloomfield Avenue
  • Betsy's Page
  • Blue Crab Boulevard
  • Blogs For Condi
  • Bob the Corgi
  • Brainster's Blog
  • BuzzMachine
  • Captain's Quarter's
  • Cinnaman
  • Coalition of the Swilling
  • CWA-NJ
  • Dino's Forum
  • Daily Mail
  • Don Surber
  • DynamoBuzz
  • eCache
  • Exit 4
  • Fausta's Blog
  • GOP Bloggers
  • Instapundit
  • Joe's Journal
  • Kate Spot
  • Kausfiles.com
  • Little Green Footballs
  • Michelle Malkin
  • More Mnmouth Musings
  • Parkway Rest Stop
  • Patrick Ruffini
  • Polipundit
  • Power Line
  • Right Wing News
  • Roger L. Simon
  • The Blue State Conservatives
  • Riehl World View
  • Red Jersey
  • Right, Wing-Nut!
  • Sid in the City
  • Tiger Hawk
  • The Truth Laid Bear
  • Tim Blair
  • Wizbang

  • Sid in the City

    Majority Accountability Project


    New Jersey Blogs


  • 11th and Washington

  • A Blog For All
  • A Planet Where Apes Evolved From Man?!?
  • Armies of Liberation
  • Atlantic Highland Muse
  • Attack of the 15.24 Mete

  • Barista of Bloomfield Avenue
  • BeLow Me
  • Big Windbag
  • Blanton's and Ashton's
  • Blue State Conservatives
  • Burning Feathers
  • BuzzMachine

  • Clifton Blogs
  • Coalition of the Swilling
  • Cobweb Studios
  • CoffeeGrounds
  • Constitutional Conservative
  • Confessions of a Jersey Goddess
  • Corzine Watch
  • Crazy Jackie
  • Cresting Acrocorinthus
  • Cripes, Suzette!

  • Daniella's Misadventures
  • Did I Say That Out Loud
  • Dojo Mojo
  • Dossy's Blog
  • Down the Shore
  • DynamoBuzz

  • eCache
  • Enlighten-NewJersey
  • Eye On Hoboken
  • Exit 4
  • Exit Zero
  • Extreme-Psychosis

  • Fausta's Blog
  • Fausti's Book Quest
  • Fractals of Change
  • Frenchtown NJ Blog

  • GiggleChick
  • Gregg Gethard's Amazing Personal Journey
  • goethe re scape

  • Hoboken Rock City

  • IamBillPower
  • If this is paradise, I wish I had a lawn-mower
  • Imaginary Therapy
  • Inadmissible Evidence

  • Jersey Beat
  • Jersey Perspective
  • Jersey Side
  • Jersey Style
  • Jersey Writers
  • Joe's Journal

  • Karl's Corner
  • Kate Spot

  • Laughing At The Pieces
  • Likelihood of Confusion
  • Liss Is More

  • Mamacita
  • Mary's Lame Attempt at Fame
  • Media in Trouble
  • Michael Carroll
  • Mister Snitch!
  • MucknMire
  • My Life as a Rabid Blog
  • My New Jersey

  • New Jersey Eminent Domain Law
  • NJ Conservative
  • NJ Fiscal Folly
  • New Jersey For Change
  • New Jersey Weblogs
  • NJ Spoken Word
  • Northeast Corridor

  • Parkway Rest Stop
  • Philly2Hoboken.com
  • Poetic Leanings
  • Poor Impulse Control
  • Professor Kim's News Notes
  • Property Tax NJ

  • Rain Angel
  • Riehl World View

  • Shamrocketship
  • Shipwrecks
  • SloppyDawg
  • Sluggo Needs a Nap
  • SmadaNeK
  • Static Silence

  • Tami,The One True
  • Tammany on the Hudson
  • Tequila Shots For The Soul
  • The Art of Getting By
  • The Center of New Jersey Life
  • The Daily Fry
  • The Duc Pond
  • The Jersey Shore Real Estate Bubble
  • The Joy of Soup
  • The Mark(ings) of Zorro
  • The New Wisdom
  • The Nightfly
  • The Opinion Mill
  • The Pink Panther
  • The Political Dogs
  • The Rix Mix
  • This Full House
  • Tiger Hawk
  • Tomato Nation
  • Toxiclabrat
  • Twisty

  • Unbillable Hours
  • Usdin.Net

  • Where Is The Remote
  • Wine Goddess

  • Xpatriated Texan

  • Links

  • NJ Governor
  • NJ Legislature
  • Bob Menendez Information

  • Blog Rings

  • Blog Explosion
  • Blog Directory
  • Blogsnow
  • Blogwise
  • Blogstreet
  • Blogshares
  • Blogarama
  • Blog Digger
  • Daypop
  • Globe of Blogs
  • Blog Search Engine

  • Ecosystem Status

  • Who Links Here