Also in this playlist...
This transcript is automatically generated
-- White House officials had hinted that a government run health insurance program won't make or break the emissions plan.
Administration's plan to overhaul the United States health care system how much we'll cutting the public option -- would cost boosts.
Let's bring in Douglas told CNN I can speak today president of the AG consulting -- former Congressional Budget Office director good morning Douglas good to see it.
-- -- -- All right still it sounds as though the public opt out option basically may be off the table although we're hearing mixed reports from Linda Douglass as opposed to what we're hearing for the health and human services secretary.
What -- this suggest if it is off the table has the administration lost ground.
Well I think.
It should be off the table seriousness.
Students of Health Care Reform.
Have never seen what the public option would contribute to fixing America's health care problems they're really two flavors of public options one is on it.
One that pays Medicare rates to doctors and hospitals.
Price fixing in Medicare has delivered lower quality care of and we need that and bill we can't pay and so it's part of the problem more of that won't help.
-- the second version of a public option would try to compete on a level playing field with private insurers and that really begs the question how do you get effect of competition and that's got to be the key and Republicans have been saying all along that that they have proposals for increased choice greater competition and let markets work.
That would be the rapid -- ago.
Are still so don't assume I've been talking about this for -- very long time let's get into the co op option right now this is something is senator Kent Conrad proposed.
As much as three months ago.
What would the co ops look like and you think this could actually be the type of bill that we should -- congress.
Well certainly there the senator believes that this is a good contribution and he.
I think was very clear about the fact that the senate doesn't have the votes for a a government run plan so.
If you look at -- talk carefully one of its key characteristics -- it's -- not for profit.
That's not -- there many not for profit insurance companies in the United States.
A second piece would be that they -- -- would have unique ownership structure you know be an owner operated kind of cooped.
That raises the question where does the -- money come from.
If that money is government money and it gives it competitive advantage and raising equity then you have the same problems you have with the other kinds of public option so.
They -- the devils really going to be in the details -- and then.
It that's the case.
How do we create that necessary competition something you talked about before in order to drive prices down.
Well if you look at the United States it has fifty different insurance markets and the rules -- those markets differ by state.
One thing that the federal government could do would be to step in and try to set a uniform set of rules.
Politicians have been hesitant to overrule states' rights -- there but that's one way to go.
Another would be to allow individuals the greater ability to purchase across state lines so they can bring the power of consumer choice to the different insurance markets the United States offers and delivered to them the one they like the -- there are a lot of options for -- lot of options for greater competition.
I think that will be the key to really making -- insurance markets deliver better service.
Okay if that's the case though I guess I wonder Douglas whether -- not that addresses the key issue that is -- that people are talking now which is the uninsured.
Does it really drive prices down fast enough to address those who were uninsured in this country and so if it doesn't what do we do about them.
Well let's remember the uninsured are all created equal.
The most important group of uninsured -- those who are working Americans it typically in small businesses.
Who do not have insurance because of the cost and -- the key will be to deliver better competition and products they can afford.
But also to get control the underlying costs of health care.
The cost of the services that hospitals and doctors provide to Americans at the very different set of issues than insurance market reforms.
But also some Americans who probably or remain -- -- short there are those who were not pleasant here illegally.
-- -- -- college students who could be covered by their parents or.
Going around that high income Americans who was -- just self -- Former CBO director you worry about dollars and cents.
What -- that change in the plane and -- look like right now to the federal budget deficit.
That the things are on the table right now -- are devastating to the budget outlook we are on track to.
Grow a record amount of -- in the United States we're on -- to have a dangerous to expire unless we change course and there's nothing in the house and the senate plans we've seen so far.
That does anything but make that worse we build big new entitlement programs that are not adequately funded and we were we replicate the problems are we have.
Our wonderful thing and as always terrific seeing you thanks so much.
Good to see if I -- -- take a quick.
Filter by section