The Lexington Herald Leader editorial board still doesn’t understand the role of basic economics in the health insurance marketplace. This leads them to promote a conclusion they can’t justify and a solution that hasn’t worked despite its repeated application over the last half-century.
“Money remains the biggest obstacle to Gov. Steve Beshear’s campaign promise to insure all Kentucky children. It would require an additional $40 million from the state to cover all eligible kids.”
“The federal government would pick up the rest.”
“It’s a great deal for states.”
“Kentucky could spend $440 to cover a child in KCHIP, and the federal government would pay $1,560. The match is not quite that favorable for Medicaid, but it’s close.”
The implication is obvious: raise taxes, spend the money, and everything will be fine. Or the modern version, which involves simply borrowing the money first.
Americans are slowly coming to understand the economics of gas prices. If we subsidized $2 for every gallon of gas, that soon wouldn’t be enough and we know it. Healthcare is no different.
The answer is less government spending on healthcare — and less cost-increasing regulation. Not more.