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Former Blue Cross Blue Shield COO William Winkenwerder on federal government’s efforts to rein in rising health insurance premiums.
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As a new health care -- -- hits the Supreme Court.
Governor pressure on health -- insurers is heating up the federal government is going after health insurers for raising costs going recent premium hikes unreasonable.
The impact of obamacare already being felt joining me now William -- -- Former chief operations officer for blue cross blue shield the knows a thing or two about insurers welcome to the show -- great -- -- -- you.
Kelly what do you make of the federal government getting involved here and jumping on these companies and I understand they -- to raise premium something like 24%.
Yes well some sometimes for years to go up in the health care sector we know that health -- more and more expensive.
But the federal government just has no business.
Reviewing and making decisions about what health care rates are in all fifty states.
It's a top down very cumbersome approach.
There are various factors that go into what might cause health care costs to go up in a certain markets.
The government -- debt levels just.
Is just not equipped.
To get in there and micro managed from.
Well I don't let me you have the most out there some of the numbers here behind this discussion failing health insurance premiums under Obama he promised to bring them down.
In fact they went out.
Take a look at these numbers that promise -- that they would go down by 2500 a year for families they're actually going up 2200 a year for families.
Is obamacare the solution to bringing health care costs down -- know.
You know -- -- -- not and I think you'll find people on both sides of the aisle.
Who say that the helped fashion -- across -- spectrum.
We'll tell you did it does not bring down health care costs why because they're not the incentives.
To bring down the cost of care in this law -- fact.
There -- or watch -- provisions that make the cost go.
And -- mandating more coverage of more items.
Not -- -- there to be a financial incentive for individuals or for employers to manage in the most cost effective way so all those things in the aggregate.
Drive up the cost.
You know you worked -- with George W.
Bush and I in the administration not on health care.
What with the military and he also when you're with blue cross blue shield you -- in massachusetts' largest.
Which is very -- and as you would have seen Romney care unfold what was the effect on your industry.
Well.
I wasn't there at the time Romney care came and the marketplace I was -- just before that.
But what I can tell you about the Massachusetts market is very uninteresting.
-- there are a lot of mandates already in Massachusetts.
To cover various different items it's very expensive health care costs are there are high.
I think if there's a failing.
Romney care and I do believe it is different than Obama appear to be clear there are many differences we don't know if I'm -- to those today.
But if there's a failing -- it is that it did not put into place some mechanisms.
To hold down health care cost its promise too well.
You know this is -- this whole conversation got started and people don't even talk about it anymore that the cost of health care how it's gone up.
What are the issues that I'm very interested in employer provided health care we have a system in this country to provide people with health care and -- -- slowly unraveling it.
As a matter of fact companies likely to drop 30%.
Say they will drop their coverage entirely what is that going to mean for this country as those employers start peeling back their coverage.
It's going to be -- its already very disruptive.
And essentially what we've done -- this law is put something in the place it really turns upside down the whole health care system.
Affects all employers affects all individuals affects all health care agencies.
And it's just not necessary to get more people covered I've -- -- -- more people covered well.
You could keep the element that says you can stay on your parents' coverage -- clear choice -- access to a half million people.
You could give states more flexibility to operate the Medicaid program provide them some funding.
And give them flexibility.
Put more people into the Medicaid program if we wanted to go that direction.
You could I'm not saying it's the right policy -- which you could.
Mandate that employers contribute something even smaller employers to health care coverage.
Making it more possible for employers to get -- I probably wouldn't be all that popular we're going to be that popular.
And that's just the point is that none of these things are popular raising taxes is a proper.
This war got -- jam through.
Where is no bipartisan.
Support.
-- you -- it's interesting because the insurers out there.
When you read.
The trades on them they are standing behind obamacare mainly because they see it as that maybe.
Not the worst possible scenario -- -- -- it if they if they come out -- war against this and there's going to be something else that the administration comes up with that congress comes up with.
To solve the health care dilemma so they're behind it but it seems to me that the industry is really getting socked.
With a lot of trouble here not the least of which is control over their premiums.
Well that's -- and it's sort of a double edged sword look out for what you ask for you just might get it and in this case they've asked for this opportunity.
To have everybody in the pool.
By mandating that coverage be there for everyone.
And in return they would.
Not provide insurance anymore in this -- traditional -- in other words they couldn't raise the higher risk.
There's very little difference between the high cost person.
And a low cost person in terms of what they are charged under this law.
Again all these things -- the wrong incentives.
To hold down cost but insurers.
I figure -- -- short -- trail hard rock and a hard place they've come out.
For this initially.
I think they're a little surprised that the kind of got be has beat up as they did rafter.
The law passed and now well I don't know what they think but -- -- right.
It's gonna be interesting to see how plays out bill thanks for coming on with this thing I do we really appreciate it interesting stories especially for -- -- thank you.
