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Amerigroup CEO Jim Carlson on how the health-care law will boost the company’s growth.
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The Affordable Care Act is -- flood medicate with up to twenty million Americans.
And my next guest stands to profit in a big way joining me now -- -- Fox Business excludes from Virginia Beach is Jim Carlson Amerigroup chairman CEO.
And president so.
Is 69 to twenty million people going in the Medicaid you -- directly.
With the states.
How much of a revenue boost to think you're gonna get now.
Oh my goodness well good afternoon Cheryl thanks for haven't -- You're asking the CEO of a company that's already growing about 40% this year so.
In many ways what the court did yesterday it is the firm what we thought would happen and probably more importantly what we've been planning.
Would happen and that's that.
For the last half year so we've been sort of guiding our employees and -- of course are shareholders to expect that -- 2011 based the company will probably.
Triple.
The next let's say five or 67 years and done and to be ready for that and I think yesterday's actions really.
Solidify that that picture.
Well you know until I don't ask -- curious if you're concerned yesterday the one piece of contention.
From the -- was that was the issue of the states being.
Basically you know fine -- to give up federal funding if they did not comply with this but that did not stand so I'm curious if if you're worried about state saying.
Because of their budget issues have waited minute you know we're not gonna comply right now we have the freedom to -- at the court backs this up on that we've got hurt your business at all.
Well there where they're let's face it there were these ten minutes where everybody was confused and then once we saw sort of be asterisk associated with the Medicaid expansion we had to think about a little bitten.
And try to get a better sense of what it meant hand here's where we are -- -- Let's remember who we're talking about -- talking about low income families.
Family of four and 101000 dollars and so forth and these people are incurring medical expenses they're going to the emergency rooms are experiencing trauma and so forth.
And and -- for those people.
To be in the system and for state to not expand Medicaid and not taken the federal dollars that a 100% subsidy from the federal government.
Is math that we think once the states really think about this they're likely to proceed.
With the expansion in fact there's precedent for this in the ninety's there were the state that expansion of the state health child health insurance program initially some of the states were.
Were up put off by somebody up politics and so forth but all fifty states -- the chip program it's a far lower subsidy from the federal government.
And and what's really important.
Sacrificed safety effort and it's just to me like you're telling -- saying here that you've been having these discussions with the states and you've got obviously didn't business but then you've got -- Have these these conversations off record about what the future holds a -- you need to know for your shareholders as much as they need to know for for their medical plans crap.
Exactly so some of the states we know immediately will go on with the Medicaid expansion sums need to analyze little bit.
They're also getting some input from some of the hospitals.
Hospitals benefit from what are called disproportionate share payments to be to be too arcane with the technology here but.
Dish payments go to safety net hospitals that largely serve low income urban populations.
Those dollars are being taken away from the hospitals -- the number in the billions of dollars a come away from hospitals as part of the act.
That part of -- -- remains so if the hospitals in the inner city that served.
The people who have least among us in terms of resources -- don't have that money from the federal government and don't have the Medicaid expansion upon which they were depending.
It'll create huge disruptions in terms of care for low income people and we think when that the -- -- and all these perspectives and they see all that money coming from Washington DC and and probably when we get by the elections and they'll mobilized to okay.
Right to expect -- finally go and parent after write about 40% growth projections for the company.
-- today the stock is up 11% of the same time Moody's made a very interesting comment about the mandate itself overall the law itself saying that it didn't think it had a net T.
Once when it really comes to implementation.
Do you -- -- on -- one.
Well so now you're on the other side of the -- this would be the common rules governing the participation of people in employer sponsored health plans and direct market market products to.
To consumers.
And I think it's there's there's nothing new about what came out yesterday -- what Moody's perspective as I think the for the market to work that we need as many participants as possible -- stronger -- later.
Tax or choice or whatever were calling in today certainly would -- bring more participants into the system.
But some I I think the industry has been prepared that that they would be in a position like this.
You're seeing a lot of infrastructure changes -- -- relative to innovation and creativity credit deal with the issue of affordability.
And and let's get this this program a chance to work and see if we have to make it just.
Able to cross and I appreciate you coming on thank you for answering my questions is gonna be a fascinating.
Next few months January with the says the system in this country are group's chairman C value per -- in thanking him very much.
