General Assembly needs to review motivation and specifics of health insurance program       Send a link to a friend

[OCT. 13, 2005]  SPRINGFIELD -- State Sen. Larry Bomke, R-Springfield, says the governor's proposed All Kids health insurance program is a laudable goal but warns that the General Assembly needs to be cautious when reviewing the motivation and specifics behind the plan.

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.

[to top of second column in this article]

 

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]


Back to top


 

News | Sports | Business | Rural Review | Teaching & Learning | Home and Family | Tourism | Obituaries

Community | Perspectives | Law & Courts | Leisure Time | Spiritual Life | Health & Fitness | Teen Scene
Calendar | Letters to the Editor