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Ronald Williams, former Aetna chairman & CEO, on what would happen if states do not comply with Obamacare and set up health-care exchanges.
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All right so if you're noticing a pattern here now the governors of Wisconsin Ohio Maine the latest to announce these health care exchanges.
Now we will we we don't want and that makes more than a dozen governors right now don't want any part of the crucial component held Carol also forget -- -- everyone was a -- -- -- state about.
Where do you can mandate that people have health care coverage.
What is this is the stuff that on does of these health care exchanges that individual states.
Have to set up they don't set up then what former Aetna CEO of Ron Williams it's now run.
What do you make of -- Well first let me say thank you this pleasure excuse.
The year.
I think there are states who -- legitimately concerned about what does it mean to be in the exchange in terms of the obligations financially they take on.
It the other extreme there -- states who have enthusiastically.
Embraced these exchanges even though it's not clear what all the rules are going to be.
With states don't showing there is a federal back up where the federal government will administer the exchange -- that state.
So in the end it could be what some people were cynically opposed to this law.
-- at the outset.
We do get to a single Payer system.
And the government running -- holds -- bank.
Well I think that's probably a little bit too far from what I would see it at this point because I think the bigger question for all of this isn't what -- we have exchanges and who they are being administered by.
The question really it's a fundamental affordability of health care in the country.
And as you know given that we have the fiscal cliff -- everyone's worried about one of the questions of governors are trying to think through is.
What changes will be made in the financing of the entitlement programs in order to address the fundamental issues we face with the deficit and debt.
You know a lot of folks -- are looking at what's been happening to health care premiums they've been rocketing.
For the loss since the law.
And they're they're shocked a lot of folks -- set of can't believe there's a lot of companies now.
Wal-Mart so many others Darden Restaurants scaling back hours for their workers are cutting their workers.
And -- their health care coverage.
Because this is getting so big so fast what do you make it.
Well I think it's fair to say the premiums have been going up but we also have to remember that premiums are reflection of underlying health care cost.
And we all want the health care services that we had.
And the -- isn't it more a reflection of if you obviously want to cover those preexisting conditions and keep kids under policy a little longer.
You know I'm not the sharpest -- open pit in the said Iran but it would it would come to risen that that premieres -- go up a lot.
Why I think it is fair to say that.
The benefits that are being offered are more comprehensive and would you pay when you get more you pay more for that.
And so I think we are going to -- cost pressure in terms of the more comprehensive nature of the benefits.
And I think one of the things we're seeing is employers really increasing their participation.
In the consumer directed plans.
Where there is a higher deductible and the consumer has more skin in the game.
Honorable watched closely Ron -- thank you very much for coming in appreciate it.
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