You're watching...
Former CBO Director Douglas Holtz-Eakin on the impact of the health-care law on employers, insurers, states and consumers.
Also in this playlist...
Auto-advance: ON
Auto-advance
This transcript is automatically generated
Today is the -- businesses and insurers have to cover a range of women's health services.
Including contraception and the morning after pill if not these companies will face huge fines for more.
I'm joined by Doug Holtz -- he's the president of American action forum.
And a former CBO director so -- -- make it does -- this is a deadline these in these in these institutions sort of being forced to lose their religion.
Are we gonna see more lawsuits what's gonna happen in the wake of this.
But we're certainly we've already seen lawsuits and they'll have to wonder way through the courts -- and we may yet again and after the Supreme Court with the case about.
Intrusion on religious freedoms which -- have institutions feel.
-- from the other perspective this is exactly how the bill was designed.
He try to roll out things which are perceived as benefits up front cover kids sold 26 cover these services that's the good news.
The bad news is then the money have to come from somewhere so this will mean higher premiums for everybody and bigger subsidy costs when the bills in full effect.
-- subsidy costs and are ready we have several states that.
Don't wanna take the Medicaid money associated with this plan Obama care because they say it'll put up on the hook for even more money down the line.
You know we've got -- push -- on obamacare going on the president's trying to push his plan on the states the states are pushing back who's gonna win.
I think the supreme court's decision gives the states a lot of leverage I'm up until the Supreme Court said they couldn't force the Medicaid expansion.
States had no choice and literally no say.
Now the administration desperately wants the states into the Medicaid expansion.
There -- position to demand from the administration know a little more flexibility so that they can.
Deal with their low income populations believed they'd like to.
A little consultation on how you do these insurance exchanges and what they're gonna cost the states so I expect to see a very different.
Affordable Care Act in the aftermath of decision.
Hear you -- insurers were supposed to be getting rebates Obama care requires insurers to spend a certain proportion of their revenue and earnings.
On care if they don't they have to pay that money out to individual people policyholders like you and me.
Our people and money and if they are.
Does this make sense -- you.
Yes they're going to get money and not politically makes perfect sense if you send out checks just before an election we have to take credit what do you think -- me.
Sounds pretty good since -- -- the entire point of the Obama administration right now our our checks their voters.
So the bad news is odd that this regulation which -- essentially is there a regulation on profits for insurers.
We'll also get in the way of innovation because you know they're gonna be bureaucrat saying is this -- care expenditures -- some other kind.
So if you -- software to better manage a patient is that actual medical care is that just overhead the -- -- it's going to be amounts.
That's going to be a mess and when you look at the fall coming up is see the debate the focus on obamacare is gonna shift because of some deadline coming up or some kind of future event that's on the horizon do you see.
The debate on Obama -- changing in any way.
I don't think it'll change in the fundamental objections which remain extremely potent are.
That the large amount of spending the intrusion by the -- -- the debt is gonna leave the next generations.
People do understand that to get this done they had to -- 740 billion dollars from Medicare they do understand the threat the next generation and and those issues will not be changed by any deadline or any announcement.
Well let me switch up topics just a little bit on being here -- you are adding people forget your an economist not just say you know political -- right.
I've we have the Fed sit on -- chance to them and I think it's interest saying that there is this sort of unspoken.
Agreement.
Between Wall Street and Washington they want as much stimulus as they can get both of them -- this unholy alliance really putting pressure on the Fed.
But they didn't get it today.
Do you think this economy will continue to drift for the rest of the year up to the election and do you think that the Fed at this point can really have any influence at all.
I think the Fed did the right thing today mom.
The that the Fed enforcement isn't a position where can play defense -- something bad goes wrong in Europe they can step in and try to insulate our financial markets and that.
But there's no offense so there's nothing they can -- make this economy grow faster than the economy's basic problems -- -- -- in Washington.
We've got a fiscal cliff of 600 billion dollar -- people us straight in the face that's.
Going to harm growth for the rest of the year I anticipate further weakening until something fundamentally it's time.
I'm past the cliff.
We have deep problems with our debt we need entitlement reform -- -- tax reform and if the Fed can't do that the Fed can only -- the congress the administration Jordan and Canada us.
What I love that offense and defense that's absolutely right that's why you're so Smart why we have -- on all the time doesn't.
Thanks for children appreciate it.
