Aloha!

The ‘Big Island’ is ending the United States’ only children universal health care program. Launched just seven months ago to great fanfare by American proponent of government-funded universal health care (the United States is the only developed nation with universal health care) the program is now coming to an end. The state’s Republican Governor, Linda Lingle, cited budget revenue shortfall and the available private options for ending the program.

Such a turn-around by Hawaii raises questions about the prospects of universal health care in America; a major election issue with both candidates promising more coverage with Obama offering the most expansive plan. Though neither candidate will mandate coverage; a norm in developed nations.

Hawaii’s program encountered to major problems:

1) Covering the Covered: The main argument put forward by universal HC advocates is that it provides coverage for those who cannot afford it. True, but universal HC can be really inefficient for taxpayers if the program ends up covering those who can pay for their own health care. This is what happened in Hawaii with the state paying for upper middle class kids who’s parents were originally paying their health care.

2) Limiting Coverage: If the government runs health care, it can then set the parameters of coverage. Hawaii, in an effort to limit costs, was limiting the amount of coverage people could obtain under the government’s program. The state was forcing people to pay through taxes for a children HC program and then if the state’s program who not cover everything, parents now would have to pay for a private firm as well. They would have been better for just paying for private care.