New worries medical costs will soar after health care ruling
How will Supreme Court's decision impact premiums?
- Duration 8:24
- Date Jun 30, 2012
How will Supreme Court's decision impact premiums?
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Heart attack that's what's your medical bills may -- give you now but the High Court ruled that health care mandate lives.
That is the Forbes a verdict but is that the right verdict hi everybody I'm David -- let's go in focus where -- -- about Greg Dobbs Michael.
Morgan -- ended -- candidate Rick younger add bill -- so bike will this make costs go up.
David insurance premiums are gonna skyrocket.
Jonathan Gruber the MIT economist and a big advocate of Obama care who the big -- -- of the plan were pointing to.
Back in 2009.
Has gone from saying that insurance premiums what in the individual market that is non group programs would go from declining 13%.
Two years ago to now saying in states like Minnesota Colorado.
Wisconsin they've actually -- to increase.
Nineteen to 30% more than they would have had obamacare not been law.
You know -- and it's not brick it's not for everybody but this that this economist by the way that was just mentioned.
He said that 59%.
Of the public would spend an extra 31%.
In -- so even people who supported.
Obamacare in the beginning now say the premiums will go up as a result of it.
Guys I hate to shoot this down but I'm gonna tell you where you got that information -- data from an interview with that are actually email.
That was sent to the daily collar it was reprinted by our colleague of Forbes -- -- And guess what if you read the Washington Post which I will gladly make available to you in the viewers.
He set the record straight he never said that's what was gonna happen he was taken completely -- -- context and to this day I spoke to him yesterday.
This is not what he believes he does not believe it is gonna force premiums up.
That said look.
We all know that insurance premiums will always go up the question is.
Will be -- C a play a role in keeping them lower.
Then they would have been without the law what we never focus enough on our the provisions of this a lot better designed to bring down the costs of health care.
He -- -- inspiring -- CEO formation keeping hospitals from having outrageous recidivism rates which we've been seeing over the past many years.
All of these things bring down the cost if those ideas work and we won't know until we know that you're going to see it reflect.
But in -- -- -- absolutely huge gamble is it not because we have already seen it premiums go up tremendously over the past year and yeah magazines write -- Congressional Budget Office Ari said the premiums will go up.
Because when you have you know 3050 million people back into the system who are uninsured actually they'll go up but also covering preexisting conditions covering the retiree early -- you know retiree health insurance costs -- recovering drug costs.
Even a Supreme Court justices John Roberts who voted for Obama care I know -- congress about to have heart healthy.
If they -- what I say I.
Not just because of -- supposed to -- good looks but you know the it's not but anyway but also it's John Roberts said -- significantly higher health insurance premiums that would have been what since what -- it all comes down to math again I don't -- -- repeat this whole debate we had a couple years ago but how can hit it short thirty million new people how can you cover a whole lot of new stuff without premiums going up.
And I think that brings up a really good point parent not the fact that we can argue about what previous marriage it -- Obama -- plays or not place but the truth of matter is payment premiums.
Even if they rise they want not rise as much arguably as they would have if the mandate was struck down and I think that's the point -- -- Yeah I think that's a point that needs to be made cannot -- examples we've seen similar.
Eighteen -- things happen in states are the last couple of decades Washington State back in 1993.
Had a very similar form and place they struck -- and -- -- cats cats you know.
Coverage for mandatory coverage for every want.
And we saw those premiums rising -- individual coverage disappear by 1999 -- on the flip side in Massachusetts has kept the mandate and premiums have not risen nearly as.
They have oh yeah I have a little and adding my you know they absolutely darling I look at quality on the track compared to median income of state -- actually -- -- -- now that I.
Let's go -- of the weeds of statistics here but you're on adding common sense dictates that if you have.
To do more you gotta pay more Fort -- Yeah I mean I don't need an errant email the daily caller to tell me what's obvious the Affordable Care Act as they call it.
Says that she can't refuse individuals based on preexisting conditions even more than that if he refused to pay the tax that's going to be imposed.
You can always later in the game to get an insurance policy.
By definition we are for doing this we're going to raise the risk for insurance companies which means that insurance premiums -- -- going to go up.
This isn't debatable this is just basic economics and to deny it is dishonest.
Bill what -- effect get ready for death spiral slicing what's gonna happen.
Initially only the older and sicker people will -- Prices will go up -- then -- hey let's spend sickest people will buy it isn't what they're doing what we're in the big reason for this.
What are the reasons it is that are the association of retired people got a provision in there that basically says by -- law.
Young people have to be overcharged so that the old people can get a better deals -- what's gonna happen -- young people drop out.
Hey -- mandate tax taxed but whatever it is that's a pat on the back and we're gonna -- Have a death of Carol that second game because we have seen so far I know that the full thrust of Obama -- doesn't come -- for a couple of years but Michael as any we've already seen it.
Health insurers -- having it cover more people and and more individuals and as a result of that coverage.
Premiums have gone up I absolutely -- ready we've seen results of this absolutely and all the evidence is bad and in an honorary email.
This Gruber gentleman from MIT attacked a price Waterhouse study saying that premiums would go up over 40%.
So he's on the record blatantly saying that and now he's retracted it all right it's not just to get that on about it.
We go back and forth on this Rick you gotta you gotta admit that if you are forced to do more as a -- -- Somewhere somehow you gotta pay more for -- right.
First of all you talk about that rates have already gone up according -- advisories -- great article about let's talk overall territory I'm gonna I'm gonna enforcing standards -- -- -- decided if you have to do more as a business don't you have to pay for.
Yeah -- you know what you're leaving -- autocratic critical what was something kind of critical.
In the insurance equation it's called balancing the pool.
Yes there will be more old sick people but you know what the reason we have the mandate is it brings in the younger healthy people get an eighty to twenty.
And it works great if anybody way to -- with how insurance works CNN.
Hundreds of journalists are not an expert but I have cover what happened in California with -- advantage which flopped in 2006.
Because -- had all people and basically very sick people.
And it was not balanced by the healthy people -- -- got to foot the bill and hang on -- knows a foot the bill for all about for keeping those exchanges in place.
The US taxpayer that's who's gonna have to pay for all that that's them.
Is and that's really the last -- about why it wasn't.
In the end it is the taxpayer that's gonna pay for any extra crops unless Rick is right that somehow magically costs -- gonna come down have a visible as government intrusion.
I think Rick has a secret plan.
He's counting on a -- on -- getting reelected.
Supporting Mike Bloomberg is secretary of health and Bloomberg's gonna outlaw cookies that's gonna.
-- because John and I -- a valid.
-- right now he's he's gonna take that.
-- -- -- bottom line here whenever the government tries to do something that the private sector does don't costs always go up and efficiency usually go down.
They go up because they're not doing that would profit -- -- -- it would trying to achieve a social outcome.
This requires insurance companies to take people they otherwise would not take it also means that if you're young and healthy you're gonna pay the tax rather than -- join the insurance pool here can only join you need it so it's going to be.
A pool supporters sick risks go -- -- at a premium young and I'll tell -- what job.
Yeah I'm playing this season and really got here right now -- the fact that if anything that tax should actually be higher if you wanna see that although.
We're we're leaving that I -- -- -- in the end marker and.