Shocking Turn of Events

This story is being reported on Associated Press today;

HONOLULU (AP) — Hawaii is dropping the only state universal child health care program in the country just seven months after it launched.
Gov. Linda Lingle's administration cited budget shortfalls and other available health care options for eliminating funding for the program. A state official said families were dropping private coverage so their children would be eligible for the subsidized plan.

What? State officials are surprised that people dropped private coverage that they paid for to enroll in public coverage they also paid for through taxes? So now, seven months into the program folks have NO health coverage? I wonder what would happen if you tried it on a national scale?