You're watching...
VitalSprings Technologies CEO Dr. Sreedhar Potarazu on health insurance companies beginning to raise premiums due to the health-care law.
Also in this playlist...
Auto-advance: ON
Auto-advance
This transcript is automatically generated
-- surprise obamacare is forcing insurance rates up.
The blue shield in California is we're gonna hike its rates by twelve to 20%.
This coming march.
And it is certainly not alone -- -- believe me this CEO of Aetna says we're going to see some markets go up as much as 100%.
There's also a slew of other hidden fees packed into Obama care and with more.
Doctor street I've had -- -- CEO of vital spring technologies here with us.
Doc I'm glad you're here because I don't think anybody really truly understands how much this is going to cost.
You are so right this is out of control.
-- cost of Obama care.
Every week are continuing to -- and today's announcement by blue cross blue shield of California.
And -- -- are -- great example.
Of how consumers.
Employers.
And everybody in the market are gonna pay more that premiums have gone up already for individuals by about 3%.
Blue cross.
And others have no means -- actually staying profitable they have no option but to increase premiums because Obama care.
Has basically.
Changed the entire way that insurance works that I can no longer a factor in how sick and individual is.
They have to accept anybody with preexisting conditions.
So what are they gonna do.
Of course they're gonna raise premiums because they have to stay in business.
That's right and that I know there are a lot of consumer advocates out they're saying -- hey you have a being sent to changing your cash reserves.
Why did she -- that -- that as opposed to raising premiums.
-- -- -- there's so many unknowns.
I would never I would never do that as if I was running a business I would hold onto those reserves as much as I could because.
I don't know what's coming down the pike.
There's no question.
If we're expected to take on if I'm an insurance company executive today announced supposed to be taking on.
A whole slew of individuals and not be able to price based on the underlying conditions.
I have no idea what I'm getting into the second thing is is that there's a number of factors.
-- really concerning.
Not only insurance companies but employers.
As well as the states in terms of what this is really gonna cost -- since they law was enacted.
The cost of Obama care has gone up from about.
464.
Billion to now over 572.
Billion almost 25%.
And that number is only on the way up it's not coming down.
And that's why it's so strange to me that the Congressional Budget Office estimates that Obama -- gonna have little affect.
On small and large employer plans how could that possibly.
Levy.
It's not we've already seen companies like Darden.
We've seen companies like -- make some drastic changes we've heard about companies in the food services and retail industry.
That have talked about switching some of their workers to part time.
We've seen an increase in the number of employers -- may just pay the penalty.
And ask their employees to actually participate.
In the exchanges so that number of people that actually have to get the federal -- cities.
Is going up which is why there is this concern about how much the government is going to have to shell out.
Based on those estimates of the CBO.
For where things are right now is really off and -- has.
Big implications for what John Boehner is talking about what the president right now as we speak you know a few blocks away.
Because if Obama care is not on the table than there should be some serious concerns.
Because in the last few years those numbers have gone up significantly.
And that needs to be on the table in terms of preventing us from going over the fiscal class.
And you make a great point but even the Democrats I think -- coming to terms at this because.
There's a 63 dollar per head fee to cushion the costs of covering these pre existing claims -- the -- are saying needless to put that we set off for a little bit because well.
We're not really sure we you know people could afford that yet so I think even the -- realizing that that you know the medical equipment tax all this -- so.
Onerous.
It's extremely onerous and I think there's a lot of concern amongst medical device manufacturers.
There's concern amongst hospitals.
To have to take the Medicare cuts.
In terms of what's been proposed they're not gonna get the new consumers that they were -- patient that they're expecting by some states not expanding Medicaid.
As -- there's going to be a huge cut to their profitability sell them.
A lot of stakeholders in the industry have some serious concerns in this train continues down the same path.
Talked about her as a we need you to walk a couple of blocks over and I tell them all this kids is nobody's listening right now doctor.
UK thank you -- Thank you.
