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James Capretta of the American Enterprise Institute weighs in on the health-care law.
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The US Supreme Court ruling on the health care -- due on Thursday our next guest says repeal is the only solution.
James could spread out was the White House.
OMB associate director responsible for all health care in the first George W bush administration -- now with the visiting fellow at the American Enterprise Institute.
Thanks for -- and whether -- James.
Let's just start -- what you think is more damaging to the economy the spiraling upward health care cost we've been dealing with or obamacare.
Now they're both terrible you know -- -- health care law though won't solve the first problem and make it worse.
Especially for employers.
And so you know that we had this problem of rising health costs we were told that the health care law would fix it.
But it's quite clear that it's going to exacerbate the problem well over time not solve it.
Okay got -- government needed involved and everything it's gonna drive premiums up not down OK and what do you think it is the most likely scenario for how the Supreme Court rules on Thursday looks like you have the most dire scenario that may come to life.
Well I mean who knows that me and record oil and will do what it's gonna do but if -- disseminate strike down the individual mandate.
And leave the rest in place.
That will destabilize.
The -- quite a bit.
It'll be a very significant blow to the -- I think the lead to more momentum toward -- the congress because what's left.
Will be very unworkable got to become more and more apparent the insurance industry will make that clear and I I think -- lead to even more effort to repeal what's remaining.
Right because if they say hey the individual mandate by what -- government forces everyone to pay into this insurance fund that's illegal unconstitutional but they leave and the new law saying hey preexisting condition you cannot be turned down so I'd get hit by -- -- and then go buy insurance afterward and yet I won't be contributing to that fund.
That's why be such a terrible.
Outcome but you actually liked that idea because then it would force congress actually to bill Ford and repeal could even when -- sort of debt.
-- I would use the word like that idea I'd prefer Supreme Court just.
We're invalidated the entire law and let the congress work on a new program but if they did leave that in place.
I think it would be like what -- what happen in many states including Washington State.
-- Kentucky Maine several other states have tried to have.
Those kinds of insurance reforms in place in a voluntary system they haven't worked.
They led to a adverse selection that is lots of sick people signing up for insurance and helping people not.
The insurance industry has collapsed in those states they had to repeal those laws okay -- And I think that the very same thing could happen at the national level all right just one last quick thing there there's actually one idea you do life in Obama care and that's this.
Individually controlled tax credits talk about that quickly.
Well I mean you know there's many things in the law that were very very bad but of course the basic -- concept of moving more people -- individually controlled tax.
Tax coverage that they can buy insurance on their own is basically a good idea I think they substantially distorted that idea and health care law we should do that the right way -- -- replace program.
All right thank you so much for being with us -- -- product.
Thank you.
