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VitalSprings Technologies CEO Dr. Sreedhar Potarazu and Manhattan Institute Senior Fellow Paul Howard on the steps state and local governments are tak...
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One thing the Obama administration promised wouldn't happy -- under the new health care law.
Workers having their hours reduced or employers don't have to pay for health coverage I guess -- do it.
The government -- -- -- Virginia announcing a new plan to cut its part time state employees back.
229 hours at most.
It would save the state 110 million dollars he makes -- that -- would otherwise be spent on health insurance so -- other state governments do the exact same thing.
Doctor street are part -- as the CEO vital springs technologies we have some Paul -- -- -- -- hello.
With the Manhattan institute doctor.
Sure -- You're shocked rate can't -- it.
Yeah it -- shocked and you know I do business in the state of Virginia so it's even more shocking that.
The state is making such a dramatic statement you know we heard a lot of small employers.
Up until now talk about how they're gonna switch some other folks to part time.
But the state of Virginia has a lot of people especially in Community Colleges.
And -- -- were going to be affected by this we're gonna be now shifted to 29 hours and now unfortunately.
These employees.
Not only will be able to get health insurance but they're also gonna obviously take a pay cut rate and be able to pay for you know just serve.
Arrival rate.
-- I mean I guess what each shocking to me about this is that the government is making a sound financial decision that there like weighing the options.
And they're actually sitting there and saying hey look if we cut back we don't have to pay that so.
I guess aquariums prized but not.
For the reason you I think the.
You're seeing this echoed across the business community.
Every individual companies gonna make a decision like this -- -- Based on our bottom line can we afford to do that's great so it's not surprising that -- doing it -- that it's going to be writ large across the country it's one of those unintended consequences Freddie could see coming that that Washington just didn't pay any attention to.
Yeah I mean doctor.
23 to your Community Colleges.
-- where they had tons and tons of part time workers a lot of them are teachers and professors and they just realize that you could have them work.
You know these hours they would still be achieving the same thing that you could save all this money.
The real acts are now on the of course though is that these people will stop health care of some type when the system gets up and running but they just won't have as much money as they had before I mean.
Yeah we we we hope they're gonna get health care I mean we -- banking on the fact that these state level exchanges are gonna be up and running.
And that people buy this October.
Which is not that far away are going to be able to go on to these exchanges and pick some kind of health insurance plan.
If they're not getting it through their employer.
But as we all know there is still so much work that has to be done.
In terms of the regulations.
And the exchange is actually being put up.
That a lot of these people who -- now losing their benefits could be left with nothing.
Right in -- -- -- that is a real danger as we look at as we're getting closer close to the deadline mean you look here and this could be -- state -- Virginia at least thanks a language inserted into the state budget.
But that law could come into effect long before we see the government apparatus get up and running with the health -- so these people can find themselves thanks to Obama care.
With no health care in the small.
These are looking at a at a train wreck in motion here we've got at least twenty states have said they're -- -- set up any state health insurance exchanges.
The Fed's exchanges are running behind -- still haven't felt all the rules for what insurers are gonna have to offer and the comfort it's gonna be honest -- these exchanges can be very rich can be very expensive so people to get sticker shock along the way.
I think this can be and embarrassing moment for the administration without.
Question and doctor.
You know the health care that that people can afford to pay acts are forced on team together -- that is very crowded and does not have enough doctors serving -- And then once again.
You have the people who are wealthy and can always take care of themselves paying a higher price for private health care that they know is going to be cut.
I think we're really headed towards a one tier system and I think you're right Melissa is that those that can afford it.
Are gonna find a way to either get concierge service rate or some kind of fee for service and pay cash for -- and that will never change.
But clearly this system is converging to a single Payer system.
Where either the states are going to defer to the federal government to try and put in place these exchanges.
Or you're going to find you know a lot of doctors and hospitals now conforming.
To a single system and everything that we've seen so far lends itself to that now -- right thinks about the DO appreciate your time thank you thank you -- -- so.
