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Peter Morici says clinging to untenable solutions for health care costs is not the answer
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Peter -- -- is here today to talk about his latest article on foxnews.com.
And Fox Business it has to do.
We -- Paul Ryan and the Republican budget plan that was introduced in the house.
And it's good to talk to you Peter it's always good to have you on fox fox business and Fox News.
Why do you think this is the wrong plan for the GOP.
Well simply.
Don't work -- work and I think are -- people rejected those in the last election.
-- -- -- -- -- -- I know large important right now try to -- insurance company's -- or against the other negotiating.
-- -- And are rocketing.
Really expecting giving -- -- -- instead of the federal government setting Medicare rates that that's gonna bring the cost.
So.
So in the -- and the -- plan though did the whole idea of seniors negotiating I guess for there insurance.
It day gets phased in over decades doesn't it.
Oh.
-- I don't believe that creating lots of small fires again very very large -- Koppel with the sellers.
Is gonna create a competitive environment that reduces prices now it will reduce the cost the government that -- simply shift the burden on -- -- -- Dot that they -- -- a bigger share.
Health care costs out of their own pockets.
And -- be at a higher price it is actually in actuality that health care cost so they can even bigger stronger the economy.
It's something though that's very troubling about the affordable health care act whatever one calls Obama -- -- and and it seems as if business people small business people get beat up when they call out the truth that everyone said would happen.
-- plays actually laying people off for cutting hours in order to fall below the thresholds.
That require either the health insurance or the penalty.
And in some cases people working fewer hours or perhaps getting laid off they're not going to have the health insurance that they actually have now.
From their employer that's a negative effect from all -- -- correct.
Absolutely I'm not a big advocate of obamacare.
And that's really had -- separate set of problems with to do with people that are on the payroll now that are working age and so forth.
Obama care creates a lot of adverse incentives which will also push up.
The amount we spend on health care.
My point about the Ryan plan same thing with the Medicaid proposals to give the -- block grant.
The states are -- negotiate any better would provided -- the federal government is and let the federal government changes the rules of the game.
You know for example could that they -- New York.
Negotiate drug prices directly would fight it and they you have to tell us -- this for the same price -- you -- in Germany which -- much flat.
Although reimport drugs for reimportation is not allowed you know it is possible the bargain down these prices the Germans spend.
50% less than we -- Yet they have helped get it -- -- good start state that they spend you know about 5000 dollar per person we've spent about 101000 dollars per person.
That's great.
And what it what are you saying at least and that scenarios the federal government the muscle of the united front.
Negotiating for fifty states would be much better than everyone going it alone.
Absolutely but neither Republican or democratic administrations.
And with the help of the congress -- negotiate with -- health care providers.
-- with insurance companies they don't have the insurance overhead we do.
You know even with obamacare is reform is substantial amounts of money goes into insurance company overhead.
And it's a very high -- that are justifiable you know the kind of -- Humana is not innovating like like Bill Gates sort or Steve Jobs did.
But rather they enjoy special position in our society.
That permit that -- chart basically too much for their time it's much like Jamie Dimon.
I'm I'm glad to talk to about the banks and then why they're too big to prosecute and resided -- too big to -- -- -- -- -- -- -- get back to the -- Budget proposal why it's playing bad in your opinion for the GOP.
You know I'm looking at it from somebody from my I'm gonna be forgive me little -- senator someone in his forties.
Looking out and what I keep hearing from both sides Democrats and Republicans.
Is that we have to cut entitlements Medicare Medicaid.
And what that means that my generation is going to have to down the road either have less.
Or negotiate for ourselves and what you're telling me is when 170 or 67 or 68 whatever the ages at that point.
When you can get enrolled is that I'm not gonna have to mental capacity to do it.
No I don't gonna have the leverage I mean not.
Because it is very difficult for single individual to walk up to an airline counter and negotiate an airline there.
But a large company -- what we've learned -- health care at large companies can't even do that.
Frankly every other industrialized country has given up on the notion of creating a competitive market for health care.
And simply regulate the prices and they -- a -- and they have a lot better health care that we do.
You know conservatives love to point to Britain and they will look at the long wait times with specialists sort of the Canadians who I thought down in New York got.
Press Secretary -- get heart surgery.
But the reality is this that -- look like Germany that has brought the private providers but regulated prices.
We're caught a lot less and health care a lot better -- Japan we're getting you know if if if if -- -- that the period.
Wyatt health care better in Germany and the price get this much.
