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Medicaid: Buckling under the stress of open enrollment

I have been an insurance broker in the state of Illinois for the past 13 years and I have seen first hand what happens when an over burdened, tax funded, Government controlled, entitlement program like Medicaid is offered to everyone regardless of income. Several recent Medicaid entitlement "expansion" programs have been enacted in our State by Governor Rod Blagoyevich (D) In fact, our state was the first to expand these Medicaid entitlement programs to include the "All Kids Covered" plan www.allkidscovered.com the "Mom's & Babies" plan http://www.allkids.com/pregnan t.html and the "Family Care" plan http://www.familycareillinois. com/

These entitlement programs not only provide free health insurance coverage to all low income women who are currently pregnant ("Mom's & Babies") and all children - here legally or otherwise ("All Kids Covered") but it also provides free health insurance to all low income mothers of children who are insured under the "All Kids Covered" program ("Family Care"). One does not need an actuarial degree to quickly conclude that these types of entitlement expansion programs simply can not work because the "All Kids Covered" program is available to any child regardless of household income levels (there is a small premium required based on a sliding scale if you are above the poverty level). Therefore, quite literally, "all kids" can enroll.

This is most troubling, because the State of Illinois is currently $1.5 Billion (yes that's BILLION) behind in payment of claims to medical practitioners who have provided treatment for Medicaid recipients. Furthermore, submitted claims by unpaid practitioners have "accrued a potential liability" of $81 million in interest due to payment delays over the past 8 years! http://www.mysuburbanlife.com/ broadview/archive/x1874998363/ Illinois-must-fix-Medicaid-woe s

Yet, we still hear the Democrats pushing for more expansion of the Federal and State Medicaid entitlement programs. In fact, Illinois was lauded as the "Flagship" state for all others to follow regarding the expansion of the Medicaid entitlement programs. If this is the template for all others to follow, then god help us all, or at least those of us that actually fund the Medicaid system through our hard earned tax dollars. Weighty decisions such as expanding the Medicaid system to all kids regardless of their actual need, simply can not be made based entirely on emotion! Prudent decision makers must weigh the DESIRE to help all mankind


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Medicaid: Buckling under the stress of open enrollment

  • by C. Steven Tucker

    I have been an insurance broker in the state of Illinois for the past 13 years and I have seen first hand what happen... read more

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