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Sen. John Thune explains how the cost of health insurance could rise even higher under the president's national health care law
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If the -- to thank you.
While the nation awaits -- supreme court's decision on our nation's health care and that decision is coming any day now a new report just released showing health care costs skyrocketing.
And alarming rate.
Is Obama cared to blame senator John soon Republican says yes.
Yes it's nice you Greta and thank you for letting us come to your office had a nice to have you here welcome it's it's that's all the packer stuff here.
It is I believe also Ben that taking your Twitter account and one of your tweets is in 2014.
Health insurance costs expected to jump by.
Seven point 9% four point one percentage point higher than without obamacare.
How do you know that it's four point 1% two points higher.
Well I think that was the conclusion that they came to and the center for Medicare and Medicaid Services which is bills from controlled of course by the administration.
Has also come out said that in the next ten years health care costs gonna go up by five point 7% a year.
What's interesting about that is.
And there's a there was a great Jonathan Gruber who is an MIT economist -- the Democrats when they passed health care relied upon for his analysis said at the time.
That health insurance costs would go down -- like thirteen -- percent for young people like 30% seniors.
And he -- since -- complete 180 he's now advising states like Colorado Wisconsin and Minnesota and advising them.
That their health insurance costs are gonna go up by anywhere from nineteen to 30%.
So it really is exactly what many of us predicted what would happen.
And he said at the time that the -- what he's telling the states now is it's all the mandates all the requirements and to cover all that it just drives across.
I that we would -- up anyway probably -- well helps your hospital your washer on up right but I'm curious to me is it is it what specifically is driving it the increased cost with the obamacare over -- have been the natural progression of increased health care -- Well most of it it comes down to mandates mean you've got a lot which meant it well you get a certain requirements essential minimum essential health benefits -- have to be covered by every plan.
Medical loss ratios certain you know -- have so much of it has to go toward health care coverage is opposed to administrative console cost insurance companies pass on.
Community rating which basically says that.
Higher risk in older people.
They can't charge you more than two or three times what they would charge for younger people whose insurance costs obviously -- health care coverage would be a lot less.
Which I suppose and we would expect as you broaden the health care coverage as more people are included as you provide more you would expect costs go up it's just that he is that I guess that the Obama administration didn't think of them got its highest they would.
Where they thought -- be offsets with some savings.
Well I think they assume too that once the once you have the requirement that everybody buy health insurance kick in.
That that would help cover the cost but.
In most cases the the analysis that I've seen that's been done suggests that.
All these things that they now have to cover.
And in this replies to a lot of small businesses is gonna force them to pay the penalty penalty in this case which is about 3000 dollars I think to start with per employee.
And there is gonna show people -- these government run exchanges because they're not going to be able live cover their health insurance or cover their employees with health insurance either because of all these requirements and it.
But it's cheaper to pay the penalty than anticipated sure right thus throwing those people into the -- -- the government exchange -- do you look to see whether the insurance companies are are making out like bandits in this -- is anyone actually set them figure out.
-- of their of their making a lot of money on us.
I don't know that that's been done you know -- -- -- shoving off some of the costs under the treatable and -- of the businesses.
But I'm curious whether or not it was -- you're gonna see him they've the end of -- somehow make a killing and that's I don't I mean I think that in in most cases.
What what companies are gonna do -- you put more taxes on which this does too and Chris you got the tax on.
Medical devices you've got taxes on pharmaceuticals you've got taxes on health insurance plans all new taxes in the bill.
We said at the time that those are all going to be passed on -- course at that time even -- CBO.
Basically agreed with us and said that you're gonna see higher health care costs as a result of the taxes in the bill I don't think what.
Was anticipated at least by the people the administration had.
Get hired to do -- -- analysis of this.
That all these mandates requirements we're gonna driving costs up as much as they have.
But my guess is if you looked at what the insurance companies are doing is they're probably taking all these new requirements all these.
-- new costs and passing them on which is kind of what I think you would expect to happen.
Cancer mental notre mental plan for what happens between now and the end of two let's say that the mandate in this struck down.
But the mandate is capped because that's really what funds this -- -- -- because that's really what's gonna fund.
I thought to fondness Obama health care and Republican trend would some sort of idea what they're gonna -- Well I think that the the mandate individual mandate really is that thing doubles altogether item in my view at least that's the centerpiece of this -- money.
That's the money and that if that gets stripped out by the courts than the rest of the thing starts to unravel.
I think what Republicans should do.
If the court throws individual mandate out is try and repeal the rest of it.
And in in get us back to where we are starting in moving in incremental step by step way toward a health insurance plan for this country.
That makes sense as -- the one that we got which was a a top down you know driven big bureaucracy.
Government mandate -- -- incredibly expensive program that.
He is going to drive up the cost of health care for most people in this country.
And and be I think it terrible liability for taxpayers in the future because when it's fully implement its gonna cost about two and a half trillion dollars over a ten year period.
