New Orleans health plan costs mount

State health planners must be exasperated. With plans for the redesign [1] of the New Orleans health system still on the drawing board, projected costs have already hit $500 million, a whopping 43 percent higher than they'd projected only one month ago. The new estimates take healthcare inflation into account, and also include $125 million to raise reimbursements for physicians who'd otherwise turn new patients away. The state would like to cover 80 percent or more of the roughly 127,000 uninsured consumers in the New Orleans area, but planners aren't sure that's going to happen. State officials are expecting the federal government to bear the majority of the costs, but even if the feds do their part, planners are facing a projected a $67 million shortfall.

What's worse, even with that investment, some low-income uninsureds will stay uninsured, planners say. Meanwhile, officials are concerned that the program will drain money away from the state's existing public health programs. This situation is a reminder that the U.S. health system is unworkable, even if you're building a health plan more or less from scratch.

To find out more about the state's plans:
- read this article [2] from The Times-Picayune

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