Also in this playlist...
This transcript is automatically generated
News tonight about the obamacare health exchanges are they doomed to fail -- even before they start -- -- -- -- then watch.
One thing -- points give the health exchanges are going to work.
They need insurance providers to participate and right now insurers are not exactly lineup.
That could add up to higher costs for not only exchange customers but for all taxpayers.
Virginia attorney general Ken could she now is the author of a brand new book the last line of defense and he joins us I see -- Good to be with you -- okay so what's for the insurance companies some of them they'll have that at least UnitedHealth whichever they won that I -- as my insurance.
-- stock has has indicated that they aren't sure they're gonna sign up.
Well first of all the federal government isn't meeting its own deadlines to inform the insurance companies.
And the states.
Various benchmarks for instance what is -- 100%.
Requirement for health insurance.
The employers have to meet this says 60% level to qualify -- they don't know what.
Marker they're trying to meet for Tony fourteen by the same token.
The insurers who are looking at fulfilling.
Exchange requests meaning.
Individuals who go into these exchanges -- -- insurance.
They don't know.
What they have to provide yet and what they're seeing.
Is signs that indicate higher and higher and higher costs on something where they thought they would at best have a three to 5% margin in the first place.
But if if a bunch of insurance companies don't join an exchange exchange then there's that can be competitive pricing in the exchanges.
Yes it's not competitive pricing you'd expect the prices to be and the higher -- reds than the lower side play and so the and -- whole idea was to get a lot of insurance companies involved.
Com so this is actually -- -- -- -- -- There are a lot of things where they had this notion of what would happen.
And that isn't what's unfolding.
You know half the states aren't setting up exchanges Virginia being one of them that that is going to create an enormous both.
Logistical challenge for the exchanges in a financial challenge because our legal position at this point is that.
If the state doesn't set up an exchange Virginia doesn't set up an exchange they can't penalize Virginia businesses to and 3000 dollars per employee but I -- I thought the default was at Virginia -- to set it up in the -- set it up for you do but the statute reads.
Yeah if your employer.
Build the two or 3000 dollars per employee per year if -- employee -- in the exchange but only if it's a state exchange under one section of the code.
The federal exchanges another section that is not written in the law been in the health care case last June 28.
The four dissenting justices even though wasn't central to the case said.
That's what the law says four of them have already agreed that you cannot penalize our businesses in this the other five haven't.
Haven't stepped in and said anything on it's all we need is one more just last year and this prevails he knows there's another reason it crashes and that's an.
I have an insurance company and make a decision whether not to get into the exchanges or not -- saudis as of this business decisions and interest coming.
They have to pay a participation.
TV do they not so that say so and then that's what about three and a half percent Desiree about three and a half percent so that comes up their margin of profit correct.
So there -- -- so that's a discouraging me so bad I mean that's a consideration for this insurance companies.
Absolutely and any any -- -- definitely gives us -- that's right and but it's only revenue of somebody shows up.
Just like -- in taxes -- work and they're not collecting any income taxes so.
They're just waiting people from getting in and and frankly I don't think it shouldn't surprise anybody that we have unintended consequence after unintended consequence this is happening across.
The board and all of these environments where they are.
Forcing regulatory outcomes.
And really stepping over the line legally this is another example that's what we talked about in the book the last sign a defense health -- was the biggest.
Example but it's not the only one I mean they're all sorts of agencies with the same attitude and the same approach.
The federal government wants insurance comes to participate they better step it up and start making -- starts right this insurance companies so that they want to participate -- and says this may this year Tony thirteen you're gonna see a lot of unfolding.
As it as we get closer to January once when he fourteen and the supposedly launch date of obamacare.
Did you push and I know I see is there -- to be with you.
Filter by section