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.