Universal Childcare? Ask Hawaii How That Works Out

The great ship Hope runs aground on the rocky shores of Reality in the 1st state in the union to offer universal childcare:

Hawaii is dropping the only state universal child health care program in the country just seven months after it launched.

Gov. Linda Lingle's administration cited budget shortfalls and other available health care options for eliminating funding for the program. A state official said families were dropping private coverage so their children would be eligible for the subsidized plan.

"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 for Med-QUEST at the Department of Human Services. "I don't believe that was the intent of the program."

State officials said Thursday they will stop giving health coverage to the 2,000 children enrolled by Nov. 1, but private partner Hawaii Medical Service Association will pay to extend their coverage through the end of the year without government support.

"We're very disappointed in the state's decision, and it came as a complete surprise to us," said Jennifer Diesman, a spokeswoman for HMSA, the state's largest health care provider. "We believe the program is working, and given Hawaii's economic uncertainty, we don't think now is the time to cut all funding for this kind of program."

Hawaii lawmakers approved the health plan in 2007 as a way to ensure every child can get basic medical help. The Keiki (child) Care program aimed to cover every child from birth to 18 years old who didn't already have health insurance — mostly immigrants and members of lower-income families.

It costs the state about $50,000 per month, or $25.50 per child — an amount that was more than matched by HMSA.

State health officials argued that most of the children enrolled in the universal child care program previously had private health insurance, indicating that it was helping those who didn't need it.

How shocking---"free" government services, lousy though they may be, actually crowd out private-sector services you have to pay for!

It's not as though we should have known this, given our experience with:

- Welfare vs. religious charities
- Welfare vs. fathers
- Welfare vs. employment
- Food aid vs. local farmers' crops
- Medicare vs. employment
- Medicaid vs. employment
- Social Security vs. employment
- Socialism vs. freedom

Who'da thunk it?

Robert Heinlein, of course, who summed it up, "There ain't no such thing as a free lunch."

Even in Hawaii.