Massachusetts Math: Paying Too Much for Health Care Plan

The blown cost estimates for the still-struggling Massachusetts health care reform are common knowledge. But last week the New York Times ran an editorial touting the plan's success in reducing the number of uninsured in the state. The State Policy Blog takes a look behind the numbers, though, and finds the touted success comes with a hefty price tag.

... even the figures reported in the editorial lead to the conclusion that this is a massively expensive experiment with miniscule results.  The editorial reports that hospitals' uncompensated care dropped from $166 million in the first quarter of 2007 down to $98 million in the first quarter of 2008.  That's $68 million, or $272 million a year.

The state budget for the program is going to be $869 million this fiscal year.  $272 million in savings for $869 million of costs: that's $3.19 of taxpayers' dollars spent for every dollar of uncompensated care avoided.

Just one of the reasons Massachusetts is among the states facing large budget deficits this year. And if a proposed income tax repeal is approved by the voters in November, Bay State politics could get exciting quickly. In 2002, a similar measure garnered 45 percent of the vote. Astonishing.

Add Maryland and Illinois to the roll call of states in dire fiscal straits.

We're not far behind, with a $2.7 billion shortfall projected last June. With a new revenue forecast due in a few weeks and revenue collections running below projections, the state deficit seems poised to deepen.

And while the Seattle Times reports that economists say a Boeing strike would have "minimal impact" on the economy, I'm sure no one wants to put the premise to a test.

Ask your candidates how they're going to address the shortfall without adding to business costs, taking money from consumers' pockets, and further dampening economic growth.