OF

GETTING.

>> PARIS, THANK YOU.

>> AND YOU CAN VISIT

OUR

WEBSITE

ABOUT YOUR

SEVERE WEATHER FOE

PHOTOS.

>>> THE AFFORDABLE CARE ACT IS

UNDER FIRE FROM BOTH SIDES OF

THE POLITICAL

AISLE AND

PRESIDENT OBAMA APOLOGIZED

FOR

THE BOTCH ROLL

OUT AND PLEDGED

TO CORRECT THE PROBLEM

BUT

CONFUSION STILL

SEEMS TO

ABOUND.

YOU NOW KEEP

YOUR HEALTH

INSURANCE POLICY EVEN IF YOU

WERE S

ENT TO CANCELLATION

LETTER

AND IF THINGS DON'T

IMPROVE,

COULD LAWMAKERS

ACTUALLY REPEAL

OBAMACARE?

HERE SUE KLINKHAMER IS THE

FORMER SAID TO BILL FOSTER WHO

WORKED

ON THE AFFORDABLE CARE

ACT AND ONE WHO RECENTLY GOT A

ELECTRICITY FROM HER

INSURER,

BLUE

CROSS-BLUE SHIELD WARNING

OF CANCEL EIGHTS OF HER

POLICY.

AND BRUCE JASPEN IS THE

CONTRIBUTOR TO INN

ORBES AND

ANTHONY LeSASSO FROM THE

UNIVERSITY OF

ILLINOIS.

WELCOME ALL

OF YOU.

SUE KLINKHAMER, LET

ME READ AN

EMAIL YOU SENT.

IN

PART IT READ I

SPEND TWO

YEARS DEFENDING

OBAMACARE, I HAD

CONSTITUENTS CALL ME NAMES THAT

I CAN'T PUT

IN

PRINT.

THE CONGRESSMAN WAS NOT

REELECTED BECAUSE OF

THE

ANESTHESIOLOGISTER.

WHEN GRANDSONMAN FOSTER WAS NOT

RE-ELECTED, I ALSO WITH THE REST

OF OUR STAFF LOST MY JOB.

I WAS

UPSET BUT BECAUSE

OF THE

HEALTHCARE ISSUE I DIDN'T HAVE A

JOB BUT STILL

DEFENDED OBAMACARE

BECAUSE IT

WOULD MAKE HEALTHCARE

AVAILABLE TO EVERYONE AT WHAT I

ASSUMED WOULD BE AN AFFORDABLE

PRICE.

I HAVE NOW LEARNED

I WAS

WRONG,

VERY WRONG.

>> TELL US HOW YOU LEARNED YOU

WERE WRONG.

>> WELL, I ASSUMED

THAT WHEN

MY

HEALTH INSURANCE

WOULD HAVE TO

RENEW IN

MARCHCH 2014, I

WOULD

GET A REGULAR LETTER

BUT AROUND

THE FIRST OF OCTOBER, I GOT

A

CANCELLATION LETTER AND IT SAID

THAT IT WOULD

BE

DROPPING MY

COVERAGE AS OF

DECEMBER 31.

THEY GAVE ME A COUPLE OF

OPTIONS.

ONE OF THEM WAS IF I WANTED

TO

KEEP THE MORE BENEFITS, I

COULD,

BUT MY PREMIUM WOULD GO

FROM

$291 TO $647.

IF I

WANTED TO KEEP

A SIMILAR

PRICE, WHICH WOULD PUT

IT

TO

$322,

I

COULD

DO

THAT

WITH

SIMILAR BASIC COVERAGE BUT

MY

DEDUCTIBLE WOULD GO UP

FROM 2500

TO 6500.

SO

I HAD

BEEN

TELLING PEOPLE ALL

ALONG WHEN I

WAS IN THE

CONGRESSMAN'S OFFICE THAT

OBAMACARE WAS A GOOD

THING.

EVERYBODY GETS

TO KEEP WHAT

THEY

HAVE AND IT WOULD JUST BE FOR

PEOPLE WHO HAVE PREEXISTING

CONDITIONS

THAT COULDN'T GET

COVERAGE, WHICH WAS A GREAT

THING, THAT THEY WOULD BE ABLE

TO GET IT.

I DIDN'T THINK THAT BEING ON

THE

OPEN MARKET MEANT I WOULD BE

PART OF

TO

THAT GROUP AND

I'M

ALSO VERY UPSET BECAUSE NOW I

KEEP HEARING MY POLICY REFERRED

TO AS A JUNK

POLICY

OR

SUBSTANDARD AND THAT'S A

TALKING

POINT THAT'S COMING OUT OF THE

DEMOCRATS, OF WHICH I

AM ONE.

AGAIN, I WANT

THIS TO SUCCEED

BUT I DON'T WANT TO HEAR NOW I

HAD A BAD

POLICY FOR ALL

THAT

TIME WHEN I WAS ONE

OF

THOSE

PEOPLE THAT LOOK AT THIS

ISSUE

AND SAY IT'S ONLY 5% OF THE

POPULATION AND THEN THEY

ASSUME

IT'S 5%

THAT

MEANS WERE

WETY,

NOT UNEMPLOYED.

THAT'S WHY WE'RE ON THE OPEN

MARKET, BECAUSE WE DON'T

HAVE

ASSESS TO HEALTHCARE FROM

AN

EMPLOYER.

>> THE IRONY HERE

IS YOU'RE

A

FORMER SUBURBAN

MAYOR.

YOU WERE A

LOBBYIST FOR MAYOR

DALEY IN

WASHINGTON.

YOU WORKED FOR

CONGRESSMAN BILL

FOSTER SO ONE WOULD PRESUME YOU

ARE NOT A

NEOPHYTE

TO THE

LEGISLATIVE PROCESS OR TO

POLICIES IF GENERAL, RIGHT?

>> PLUS I WORKED FOR

AN

INSURANCE BROKER FOR YEARS SO I

KNOW A LOT ABOUT HEALTHCARE,

TOO.

>> SO YOU DIDN'T SEE THIS

COMING?

>> NO, I DIDN'T.

I DID NOT SEE GETTING

A LETTER

FROM

BLUE CROSS UNTIL

MAYBE

JANUARY THAT WOULD

SAY,

COME

MARCH,

LET'S NEGOTIATE AGAIN

LIKE WE DO EVERY YEAR

IN MARCH.

>> BRUCE JASPEN, FROM THE

STANDPOINT OF REPORTING THIS

STORY, IN THE BEGINNING

OF

THE

ADMINISTRATION SAID THERE ARE

VERY FEW

PROBLEMS AND THEN

THEY

HAVE GROWN INTO AN

AVALANCHE OF

ACKNOWLEDGEMENT OF PROBLEM.

HOW MANY PEOPLE ARE IN

THIS?

>> I WOULD SAY

THERE

ARE -- NOT

TO DISCOUNT WHAT SHE'S SAYING,

IT IS

A SMALL

NUMBER, MAYBE

3%

TO 5% ACROSS

THE COUNTRY OR

FOUR

TO FIVE MILLION

PEOPLE.

NOT EVERYBODY IS GOING

TO

GET

THE -- THEY'RE GETTING

RICHER

BENEFITS ON THE EXCHANGES.

THE EC CHANGE

TO

PARTICIPATE YOU

HAVE TO HAVE

EXCHANGE BENEFITS.

IF YOU DON'T HAVE ANY MENTAL

PROBLEMS, YOU'LL GET

MENTAL

HEALTH COVERAGE WHETHER YOU WANT

IT OR NOT.

MATERNITY COVERAGE, THAT

WILL

MAKE IT MORE

EXPENSIVE THAN WHAT

PEOPLE HAVE.

THAT'S WHY THE COSTS ARE GOING

UP.

SOME PEOPLE'S COSTS

WILL GO DOWN

AND SO THE

GOOD NEWS IS, PEOPLE

ARE GOING TO HAVE

ACCESS WHEN

THE WEBSITE IS

FIXED

TO A

PRIVATE HEALTH INSURANCE PLAN.

THE BAD NEWS IS PEOPLE WILL GET

ACCESS TO A PRIVATE HEALTH

INSURANCE PLAN.

THIS

IS -- IT'S ALWAYS

GOING

TO

STAY PROBLEMATIC BUT WHEN YOU

ARE GETTING PRIVATE

COMPANIES

INVOLVED

HERE,

COST

FLUCTUATES

AND THEY GO UP AND DOWN TO

WELCOME TO THE PRIVATE INSURANCE

MARKET.

>> BUT AT

THE

SAME

TIME, ANTHONY

LeSASSO, WE KNEW THIS WAS A

PRIVATE INSURANCE, WE KNEW THIS

WAS A SINGLE

PAYER SYSTEM.

SO

ARE THESE P YOUR

VIEW,

SURPRISES OR NOT?

>> I THINK THE SURPRISING PART

WAS THAT THERE WAS A

CLEARLY A

DECISION MADE

IN

THE

ADMINISTRATION THAT

GRANDFATHERING THE IF YOU LIKE

YOUR LAND YOU CAN KEEP

IT WHERE

IT HAD TO DO WITH

THE SLID

MARKET, WAS JUST NOT GOING TO BE

ALLOWED.

I MEAN, I

CAN VIEW IT

ANOTHER

WAY.

IT WAS 5% OF THE

POPULATION.

5% IS

ABOUT 15 MILLION PEOPLE.

THAT'S A LOT OF THE PEOPLE AND A

DECISION WAS MADE TO SAY,

WELL,

PEOPLE WHO ARE

BUYING THEIR

HEALTHCARE POLICIES IN THE

INDIVIDUAL MARKETS WILL BE

HEALTHIER THAN AVERAGE.

AND THE

GRANDFATHERING PROVISION

WAS WRITTEN IN SUCH

A STRICT

MANNER THAT VERY FEW OF THOSE

POLICIES COULD BE

MAINTAINED.

OBVIOUSLY SUE'S WAS ONE THAT

WOULD NOT BE MAINTAINED.

THAT'S A LOT OF PEOPLE.

IMPROVE DON'T THINK IT'S A

TRIVIAL NUMBER THAT WE'RE

TALKING ABOUT.

WE'RE TALKING

EIGHT, 10 MILLION

PEOPLE THAT WILL BE

GETTING

CANCELLATION NOTICES.

I THINK AS WE HEARD FROM

SUE,

THIS WASN'T NECESSARILY A JUNK

POLICY.

YOU MEAN SHE PICKED

IT.

SHE MUST HAVE LIKED IT.

AND THE ALTERNATIVE TO THIS IS

THEY WILL BE EXPENSIVE.

>> WE NOW GO TO WHERE WE

ARE,

THE WHITE HOUSE MEETS

WITH ALL

OF THESE

INSURANCE

PROVIDERS.

OUT OF THAT COMES

WHAT, IF WE

KNOW?

>> WELL,

THEY'RE GOING TO --

FIRST OF ALL, THE PEOPLE WHO ARE

SAYING THAT THIS WILL

BE

REPEOPLED OR

WHATEVER, IT WON'T

HAPPEN.

THEY'RE NOT HEARING ANYBODY FROM

THE INSURANCE INDUSTRY SAYING WE

DON'T WANT TO DO THIS NOW.

WHAT THE INSURANCE

COMPANIES --

FIRST OF ALL, THE PRESIDENT,

THAT WAS A POLITICAL MOVE ON HIS

PART, THAT WON'T HAPPEN.

THE INSURANCE DIRECTORS ACROSS

THE COUNTRY WILL DECIDE

WHETHER

PEOPLE'S POLICIES ARE

CANCELED.

THAT'S IN THE LAW.

ILLINOIS WILL PROBABLY GO ALONG

WITH WHAT THE PRESIDENT WILL DO

AND EXTEND THEM BUT THE HEALTH

INSURANCE COMPANIES

ARE NOT WILD

ABOUT THAT BECAUSE

THEY VIEW

THESE

PEOPLE

AS

HAVING

EMPTIER

BENEFITS BUT THE I

NSURANCE

COMPANIES ARE BUILT IN THE IDEA

THAT THEY WOULD HAVE

RICHER

BENEFITS AND THAT THEY

WOULD BE

MORE PEOPLE PAYING INTO THE POOL

AND THE COST WOULD BE

OPTIONAL.

SO POLICIES WHO

ARE CONTINUED,

IF THE PRESIDENT WILL SAY YOUR

POLICY IS CONTINUED, THE

COSTS

WILL GO UP BECAUSE NOW THE

INSURANCE COMPANIES ALSO

FACE

TAXES TO PAY FOR THIS.

>> HERE IS THE PROBLEM WITH

THAT.

IF

IN TERMS

OF OF HAVING

THIS

MARKET WITH SOME CANCELED

POLICIES TO CONTINUE,

WHO WILL

KEEP THOSE?

GENERALLY

HEALTHIER PEOPLE?

THIS IS

EXACTLY WHAT THE

ADMINISTRATION HAS BEEN TRYING

TO

AVOID, IS

THIS BUY FUR

CASE

OF THE SICK GOING INTO THE

EXCHANGES.

HAVE THINK IS A GREATER RISK NOW

THAN IT WAS AT THE END OF

SEPTEMBER WHEN WE WERE WONDER

WHAT WAS COMING.

>> WHICH APPEARS THAT WOULD

BANKRUPT THE SYSTEM AS OPPOSED

TO ALLOW

THE SYSTEM TO GO

FORWARD.

>> BUT ACROSS HAS ALREADY FOR

THE PAST COUPLE OF YEARS IN

ANTICIPATION OF THIS HAS ADDED A

LOT OF THESE ESSENTIAL

BENEFITS.

LIKE THE WELLNESS PART, YOU

KNOW, THE

MAMMOGRAMS, THE BLOOD

TESTS,

THE

PHYSICAL.

THEY WERE WORKING THEIR WAY UP

TO IT.

>> THEY ALREADY HAVE

IT,

ACTUALLY.

>> BENCHMARK PLAN IS THE PLAN

THAT'S

SOLD

IS THE ENTREPRENEUR

PLAN AND

SO THE SITUATION

IS

SUCH THAT NOW YOU

HAVE A

SITUATION, IT'S ALMOST

LAUGHABLE, THE INSURANCE

COMPANIES ARE

GOING

GO

INSOLVENT.

THEY BOON THEY'RE

MAKING

BILLIONS OF

DOLLARS.

>> THEY WON'T WEEP FOR THEM BUT

IN THE MEANTIME WHAT ARE YOU

DOING WITH YOUR INSURANCE?

THAT'S THE PROBLEM.

I'M IN A

HOLDING

PATTERN.

I HAVE GOING ON THE

EXCHANGES.

I HAVE TO

WRAP MY

HEAD AROUND

THE $6,000 DEDUCTIBLE AND THAT'S

THE PROBLEM WITH ME.

AGAIN, I

DON'T

THINK THE

PRESIDENT WENT ANYWHERE TO SAY,

KEEP YOUR

PLAN.

I'M

NOT -- APPARENTLY

MY

PLAN

ISN'T GREAT OR IT CAN

BE BETTER.

BUT I'M INTERESTED IN KEEPING MY

PREMIUMS AND

MY

DEDUCTIBLE.

>> HAVE YOU HEARD FROM BLUE

CROSS.

-BLUE SHIELD SAYING YOU CAN HAVE

IT ANOTHER YEAR.

>> NO, FRIDAY

I GOT AN EMAIL

SAYING HANG

ON, WE'VE

ASSISTED

THE PRESIDENT.

WE'LL GET BACK TO YOU.

IN THE MEANTIME WHAT PEOPLE

DON'T UNDERSTAND IS PEOPLE LIKE

ME DON'T

HAVE

A DEADLINE UNTIL

MARCH.

WE HAVE TO DO

DECEMBER 15 TO

HAVE COVERAGE ON JANUARY 1.

AND I'M

NOT

REAL COMFORTABLE

WITH HAVING THIS OUT

THERE.

THERE WAS A CERTAIN PANIC FROM

PLENTY OF PEOPLE WHO HAVE GOTTEN

THESE.

IT LOOKED LIKE A SUBPOENA YOU

GET FROM YOUR

INSURANCE

COMPANY.

>> IMAGINE THAT, IT'S NOT THE

MOST FRIENDLY WRITTEN THING FROM

THE INSURANCE COMPANY.

HERE, THAT'S TRUE.

SO PEOPLE ARE

GETTING SORT OF

THESE SCARRY LETTERS THAT ARE

NOT WRITTEN BY

THE RR

DEPARTMENT

BUT BY SOME ACTUARY OR

A LAWYER,

GOD FORBID.

AND SO IT'S A SCARRY THING.

I THINK,

THOUGH, THAT WHAT -- AS

SOON AS THE WEBSITE

GETS

FIXED --

>> WHEN WILL THAT

BE?

>> UNTIL MAYBE THE END OF THE

MONTH.

THE OTHER THING, WHEN THESE

INSURANCE COMPANIES WERE INVITED

TO THE WHITE HOUSE -- YOU HAVE

TO

REMEMBER THE LIBERAL DEMOCRAT

IS

INVITING THE INSURANCE

COMPANIES TO THE WHITE HOUSE.

THIS IS THE SECOND TIME IN THE

LAST MONTH.

THEY'RE LOOKING FOR THINGS.

THEY'RE LOOKING

FOR

, PERHAPS, AN

EASE OF MARKETING AND NEED O

F

AIRWAYS.

THEY'RE LOOKING FOR WAYS

T

O

ALLOW, FOR

THE GOVERNMENT

TO

ALLOW THEM

TO

GO TO THEM RATHER

THAN THE WINDOW.

YOU'LL SEE A LOT OF MOVING

PIECES COMING UP

BECAUSE THE

INSURANCE COMING WILL GET

MILLIONS OF DOLLARS IN BUSINESS.

>> ONE WAY OR

ANOTHER.

>> THE ISSUE ABOUT THE INSURANCE

COMPANIES MAKING BILLIONS I

THINK IS A BIT

OF

DISTRACTION.

THE MAIN ISSUE

IS WHAT

IS THE

RISK?

THIS IS A PUBLIC

POLICY, WHAT IS

THE RISK POOL GOING TO LOOKS

LIKE IN THE CHANGES WHEN YOU

HAVE A LOT OF

HEALTHY PEOPLE

EITHER STAYING

BACK WITH

PREVIOUSLY

CANCELED

POLICIES OR

OPTING OUT THE

EXCHANGES?

I THINK LOOKING OUT IN

TERMS

OF

2014, WHAT I'M

LOOKING FOR IS

WHAT'S GOING TO HAPPEN NEXT

OPEN

ENROLLMENT SEASON

WHEN THE

INSURERS HAVE

TO REPRICE THEIR

PLAN AND DECIDE ON THEIR

PREMIUMS THEN?

ARE WE GOING TO

GET A

REALISTICKER SHOCK THEN?

THERE ARE VERY PLAUSIBLE

SCENARIOS IN WHICH

THIS DOES

UNRAVEL

AS

IN AN

ACTUAL VIRAL,

DEATH SPIRAL IN THE INSURANCE

MARKET.

>> WHAT PEOPLE HAVE TO BE AWARE

OF IS WHEN YOU GO

TO

THE

MARKETPLACE AND THERE IS A

PREMIUM, THAT'S NOT NECESSARILY

THE PREMIUM YOU'RE GOING

TO GET.

BECAUSE WHEN YOU GO TO THE

WEBSITE AS

THE

INDIVIDUAL

INSURER, YOU DON'T HAVE TO PUT

IN ANY HEALTH INSURANCE BUT YOU

HAVE TO PUT IN YOUR AGE.

AND I'M

TELLING YOU, AS

A 60

YEAR OLD PERSON WHO CAN'T WAIT

TO GET TO MEDICARE WHICH I NEVER

THOUGHT I WOULD

SAY,

BUT THE

PREMIUMS -- AND THEY PUT

THAT,

THEY SAY IT DEPENDS

WHERE YOU

LIVE.

IT DEPENDS ON YOUR

AGE.

THESE ARE

AN AVERAGE

PRICE.

>> YOU ARE

HEALTHY?

>> AND

I'M --

>> THAT'S FAR

INTRUSIVE.

>> I'M JUST SAYING IF YOU THINK

YOU'RE GOING TO GET A THING

FOR

31 $1 AND THEN YOU

GO TO

THE

WEBSITE --

>> THIS WAS A REPUBLICAN BILL.

THERE IS NO FREE LUNCH.

PEOPLE NEED TO UNDERSTAND THAT.

IF YOU

DO NEED ASSISTANCE IN

BUYING A PRIVATE PLAN, YOU'LL

GET A SUBSIDY OR

THERE ARE A LOT

OF PEOPLE OUT

THERE IN ILLINOIS

THAT NEED TO KNOW THAT

THEY WILL

BE ELIGIBLE FOR THE

EXPANDED

MEDICAID PROGRAM AND PEOPLE WILL

GET COVERAGE THAT WAY SO YOU'LL

HAVE A LOT OF PEOPLE SIGNING UP.

I HAVE LISTENED TO A LOT

OF WALL

STREET HEALTH INSURANCE EARNINGS

CALLS AND I THINK THE

INSURANCE

COMPANIES ARE

BRACING FOR SOME

PROBLEMS AS FAR

AS LOSING OR NOT

MAKING AS MUCH MONEY IN THE

FIRST YEAR BECAUSE THEY HAVE

INVEST A LOT,

SPENDING 80% OF

THE PREMIUM ON

MEDICAL CARE AS

OPPOSED TO 20%.

>> YOU THINK THAT

THIS

COULD

UNRAVEL AS ANTHONY LeSASSO

THINKS?

NO, BECAUSE WE

CREATE

ENTITLEMENTS BECAUSE WE NEVER

DRAW BACK

FROM THEM.

THERE'S TOO

MUCH --

ASIDE FROM

THIS MAJOR HUGE PROBLEM O

N THE

ROLLOUT AND SIGN-UPS, THIS

TOUCHES SO MANY ASPECTS

OF THE

HEALTH INSURANCE INDUSTRY.

WE'RE

TALKING -- EXCUSE ME,

OF

THE HEALTHCARE INDUSTRY WHICH

IS

A

POWERFUL

SOURCE.

WE'RE TALKING

SENIORS GETTING

ALL

SORTS

OF FREE

COOL HON

OSSKOPIES.

WILL BILL NOT E RUN AGAINST

THAT?

>> THERE ARE THREE OTHER

DEMOCRATS DEFECTED

FROM THE

DEMOCRATIC PARTY TO JOIN

THE

REPUBLICANS TO SAY YOU SHOULD

KEEP YOUR HEALTH INSURANCE

ANOTHER YEAR.

IS THAT A

CONSEQUENCE IN THE

MID-TERM ELECTIONS?

>> THAT'S ALL IT

IS.

THAT'S AGAIN WE HAVE TO KIND OF

GET RID OF

ALL THAT POLITICAL

STUFF IN

THE

MIDDLE AND WORK

ON

FIXING THIS.

>> DO YOU BELIEVE IN THE

AFFORDABLE CARE ACT?

>> I THINK GOOD HEALTHCARE FOR

ALL

IS SOMETHING THAT

IS A

WONDERFUL THING.

I'M VERY HAPPY TO SEE M

Y

FRIENDS

WHO COULDN'T GET COVERAGE

ANYWHERE BENEFIT.

>> YOU'RE

A

BELIEVER?

BUT ON THE FIRST

OF

JANUARY, I

CAN'T SEE ANY REASON TO

GIVE

BLUE

CROSS $647 FOR THE SAME

COVERAGE I WAS GETTING

FOR 29

$1.

29

$1.

IT'S NOT THAT THEY'RE DROPPING

ME BUT SAYING, YOU KNOW,

IF YOU

DON'T PICK

ANOTHER

OPTION,

THEY'LL PICK IT FOR YOU AND IT

WILL COST YOU A LOT OF

MONEY.

IT'S NOT THAT AFFORDABLE CARE

ACT, IT'S THE

AVAILABLE CARE

ACT.

>> THIS CONVERSATION, I THINK,

WE'RE GOING TO BE

HAVING FOR

A

LONG TIME GOING FORWARD AND WE

LOOK FORWARD TO SEEING ALL THREE

OF YOU BACK.

NEW TO M

Y GUESTS.

>> THANK YOU.

>> WE CONTINUE

IN

A MOMENT,

PLEASE STAY WITH US.