Obama could learn some reality from
Tennessee’s experience with TennCare. Former
Democratic Gov. Ned McWherter introduced
TennCare in early 1994 with an initial budget of
$2.6 billion. The Wall Street Journal reported
this week that TennCare proved so popular
that the rolls swelled from 500,000 to 1.4 million
by 2002.
The Journal quoted from a letter Rep. Marsha
Blackburn, R-Tenn., wrote to House members:
“Many of the concerns we have expressed about
the proposal before us today are the stark
realities of a system that went terribly wrong in
Tennessee.”
Blackburn also co-authored an essay for
RealClearPolitics with a physician, Rep. Phil Roe,
R-Johnson City. Roe and Blackburn wrote that
55 percent of people enrolled in TennCare had
migrated from employer-provided plans. Though
TennCare’s current director disputes those
numbers, there is no denying TennCare’s effect
on the state budget. Within 10 years, TennCare
spending had mushroomed to more than $8 billion,
consuming about one-third of the state’s budget.
“No matter how forthright the (Obama)
administration’s cost estimates are, no model
accounts for the rational decisions that push
people to over-utilize the ‘free care’ a public
option offers,” Blackburn and Roe wrote in
critique of the public plan option preferred by
Obama. “Over-use caused TennCare’s
anticipated savings to evaporate and its cost
to explode.”
Faced with fiscal disaster, in 2005 Gov. Phil
Bredesen removed 170,000 people from
TennCare. In addition, Roe and Blackburn wrote,
“To pay the TennCare bill, benefits were slashed
and reimbursement rates for doctors and
hospitals were reduced. … Since they weren’t
being paid, fewer physicians could afford to accept
TennCare patients. So while a TennCare card
guaranteed you access to care, it did not
guarantee the availability of care.”
The realities of TennCare are it almost bankrupted
the state, and hundreds of thousands of
Tennesseans did not get to keep their existing
insurance. The CBO puts the price tag of
ObamaCare at $1 trillion and says millions of
people will lose their current health insurance
coverage. That’s reality — a condition from which
our president seems strangely detached.
Greg Johnson’s columns appear on Wednesdays,
Fridays and the second Sunday of each month.
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