North Carolina Gov. Mike Easley joined this year’s bandwagon to provide health coverage for children. The General Assembly included “NC Kids’ Care” in its final budget, though not to the extent the governor wanted. The first year of the two-year budget cycle includes money to study the proposal, which would be fully funded in the second year.

Unless federal rules stop it, NC Kids’ Care would provide a sliding-scale subsidy to families between 200% FPL and 300% FPL, which in North Carolina is the median income, to purchase a reduced-benefit version of Medicaid coverage for their children. Early estimates put the monthly premium at $160 per child, more than a similar benefit package costs in the private market.

Of course, from the state’s perspective, the Medicaid option is better than offering premium assistance for private insurance purchases, because it more easily “leverages” federal dollars. Trying to get legislators in either party to recognize the folly of such Medicaid expansions is as productive as trying to get John Edwards to lay off the Ann Coulter references.

Bonus Observation: Some of our friends on the left scoff (2nd section) when they hear North Carolina’s Medicaid program described as a “Cadillac” plan, but others have defended the Medicaid expansion because it is such a good program.