Will you be able to keep your insurance under ObamaCare?
Two major employers changing employee health care coverage
- Duration 6:46
- Date Oct 2, 2012
Two major employers changing employee health care coverage
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If you like your doctor and you'll be able to keep your doctor period if you like your health care plan.
You'll be able to keep your health care plan.
Don't want them.
We'll take it away no matter what.
-- new questions today about that now famous promise from the president to major American employers have announced what some call a quote radical change.
In how they provide health benefits to their workers Sears Holdings court and Jordan restaurants incorporated which owns.
Chains like red lobster and olive garden.
Are now dropping company sponsored health care coverage and instead they're giving employers a fixed sum of money.
Allowing them to choose their own medical coverage so let's debate this you -- here.
Economics writer for the Wall Street Journal doctors radar put Iraq -- CEO of vital springs technologies.
And author of get off the -- the secret of changing.
Who pays for your health -- and Simon Rosenberg president and founder of the new Democrat network also a former Clinton.
Campaign advisor gentlemen thanks so much for being here.
Steve let let me start with you so it's a place is like Sears.
And olive garden -- -- to they're gonna give their employees a chunk of change in and then supposedly you can go out.
And buy your vote own insurance is this is a great idea or a horrible idea.
-- I actually kind of like the direction -- -- basically saying to to workers you can shop around you come by the health care plan that really suits your need is so it's a kind of a freedom of choice approach.
Now the way this ties and by the way Allison too.
Obama's health care plan that you were not talking about a minute ago is that under Obama's plan which are seeing -- a lot of employers are dropping their health care plans that they provided for years to their employers and they're gonna put those workers into what's called the health care exchange under obamacare.
That's something that workers are really resisting because it means they're not gonna get the kind of quality of care that they want the idea of giving people on a wide range of options though.
Eyes these two companies are doing I'm fully supportive of that.
-- people this is just competition and it will help -- people will be able to make their current choices with medical care.
In the ideal world competition and choice is great but history will tell -- that many employers have already tried this.
They've already given employee -- contributions.
And it doesn't work it doesn't work.
Because you can't give the same amount of money to every individual.
It doesn't work because the wrong people end -- selling sending selecting the wrong kinds of plans.
So if you're somebody -- diabetes and high blood pressure and a lot of medical problems.
You need to be Smart enough -- know enough to know which plans -- gonna pick otherwise what happens cost go up.
You end up not having the money not having the benefits when you need them and then if you can't get the benefits -- the -- what happens you end up back in the emergency room so.
While this notion by here -- in Darden may seem innovative there's a lot of companies that have defined or tried this defined contribution plan before.
And it has really been that successful.
Simon what happened to if you like your doctor you can keep your doctor period if you like your.
Insurance carrier you can keep their coverage period.
I think what the president was referring to is that under under the ACA the his Health Care Reform there's nothing he was going to do -- that they were doing that would prevent.
That would push people out of their -- health care plans -- nothing the government was doing and in fact.
The fact of the private market is -- in this way weather works or not we'll find out.
Is a sign that this was not a government takeover of the health care system as you've heard.
You know many people say over the last.
A couple months I think what we -- in the in this health care and I think the president has begun this is we need more innovation.
More more efforts to give people more choice we've got to control cost get more people on health insurance and I dishonest comments on the Steve said -- He says only that just completely false and he argued that there are many businesses are moving people to be put be put them into the exchanges there aren't any exchanges these aren't even set up yet and this and what he says.
Possible that it may happen.
It is certainly hasn't happened yet and that's -- the ball for his life well on the way -- a lot of the -- as you know a lot of these companies have made this announcement that they are going to move its season -- company name economies -- in the company.
But your name that they hustle on all under I -- make a point about it making it sucks -- and -- Costello song Lifesavers well I don't know.
Let me make let me address your first point though about the fact that the Obama plan doesn't move people out of -- -- -- plans that they want we know that's gonna happen and the reason that's gonna happen -- is because President Obama promised that his plan was gonna reduce premiums for health care plans -- try to point 500 dollars a year and back what's happened since the -- plan.
I'll pass was that the health care premiums have increased by 2500 and here's the reason the people are then that businesses are gonna drop their plans they can't afford it any longer because obamacare was supposed to reduce costs -- -- it's increase -- -- A son and by the way -- in keeping with what I think Steve's saying -- CBO itself predicts.
That we may see more companies in the future drop their health benefits follow the lead of -- and let there employed by the coverage through those exchanges.
Later -- found it right grade but that series is not allowing them to buy them through the exchanges this is a group health effort because the exchanges don't exist this is not this is completely unrelated to the Obama.
Health Care Reform in the senate and I don't think people under the exchange this is an exchange -- that was set up.
By -- -- Hewitt under the -- rise but the reality is is that you can employ if you gonna empower.
These employees of seniors or Darden then liable put slot machines in their lobby as opposed to giving them the kind of information they need.
If people were Smart enough to make those kind of decisions about what benefits they need to buy what -- they need to choose.
We wouldn't be having this debate today.
Well really worried about and the reality is -- we have what I basically it's doctor -- -- based -- six things people are too stupid to make these to -- now I think we have -- we haven't got.
We have not empowered them with the right information we -- but I think then that information we look we have we have plans right now for example with high deductible plans health savings account.
That actually have saved boatloads of money there's a new study out that shows if you -- these plans you can save about what accountability right up there accurately and obviously we did talk about the overall longtime -- all of a great point Steve -- and.
Do you think if you -- high school cheerleading.