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According to the
governor's office, the program, which was unveiled a week ago, will
provide parents of Illinois' uninsured children with access to
health care coverage by offering them lower premiums than what
private insurance typically offers. However, in many respects, the
program amounts to state-subsidized health care with virtually no
income limitations.
Despite the program's lofty goals, its launching has already been
tainted by a familiar tactic. The Blagojevich administration kicked
off the new initiative by awarding a $50,000 no-bid contract to an
out-of-state firm that conducts public opinion surveys. The
administration says the company -- Schulman, Ronca and Bucuvalas of
New York -- provided them with the number of uninsured Illinois
children younger than 18: about 253,000 children total.
The notice of the bid award was not posted until after the
governor's office had already begun publicizing the program,
although at least one published report said the contract had been
awarded a week earlier.
The governor claims Illinois can afford adding thousands of
children to the state's Medicaid rolls from the financial savings
expected by implementing a primary care case management model for
those already enrolled in the state's FamilyCare and KidCare health
programs. This kind of model, referred to as managed care, has been
advocated by the Senate Republican Caucus for several years as a way
to improve access to quality health care while reducing the state's
health care costs.
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If the governor's proposal is passed this veto session, parents
could sign up their children as early as July 1, 2006, and pay
premiums based on their income level. For example, families making
$40,000 to $60,000 a year would pay a $40 monthly premium and $10
co-payment. At the highest level of the plan, families making more
than $160,000 a year would pay a monthly premium of $300 with a $25
co-pay. The governor's office estimates the program will cost the
state $45 million within the first year; however, industry experts
say the program could cost taxpayers upwards of $100 million.
In addition to contract questions, the program also raises
philosophical and financial concerns. The All Kids program will not
address the many problems already associated with the state's
Medicaid system, including the 90-day, $1.5 billion backlog in bills
Illinois owes to health care providers, according to the
comptroller's office. Also, Bomke says Senate Republicans are
expressing concerns the plan might give Illinois' businesses
incentive to drop employee health coverage, with the end result
being more people using the state-subsidized health care program.
This would increase the cost to Illinois taxpayers and further tax
the state's already overstretched Medicaid system.
It is anticipated that lawmakers will review the legislation
during the upcoming fall veto session, starting Oct. 25.
[News release from
Sen. Larry Bomke]
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