Frist: 30% of Obamacare Needs to Be Fixed

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Dec. 11 (Bloomberg) -- Former Senator Bill Frist, a Republican from Tennessee, discusses the Affordable Care Act with Trish Regan on Bloomberg Television's "Street Smart." (Source: Bloomberg)

Senate since 1928. that discrepancy of having lawyers make a policy instead of doctors is probably why the health care system is dysfunctional now.

He joins us now.

Welcome.

Good to see you.

The affordable care act is in the news.

You said you think about 70% of the bill is pretty good.

What do you like and what do you not like.

To have 50 mine people uninsured trying to a lot -- rely on insurance market does not work.

There is no way to have the healthy and really subsidize the unhealthy unless everybody's in the room.

Obamacare, which does not address cost, and that is the bad part, it did not -- it did have one good aspect.

Let's bring everybody in the room.

The problem is they overpromise and gave everybody a comprehensive benefits that we cannot afford, and it set up such that the young people cap to subsidize everyone else but they are not -- questioner healthy and you do not need it.

But you need enough help the people in the pool.

Do you think they can get him?

They are not signing up because the way the bill was designed was that the plans are very expensive.

A 30-year-old today paying very little but getting a good incompetence of health insurance plan, can no longer get that.

They have to go out and buy an expensive plan because it was designed that very sick people can only pay three times what a young or healthy person does.

Therefore, the healthy young person has to pay huge amount because they're limited by this ratio.

In other words, you're not letting the market do its job inefficiently pricing policies.

The very sick but older person can pay as much as five times someone who is healthy and does not need it.

Obamacare forces them into a three to one, so young people have to pay more and they cannot do it.

So they do not sign up.

What needs to be done to change that and make it so they can work.

It is hard in washington where i used to be.

It is hard to get something done.

It will take somebody.

To set back and say we need real market-based pricing.

Everybody needs to be in the room.

You cannot promise them everything.

You cannot give them goldplated coverage.

Make it real insurance and not pre-k -- prepaid.

Is that not why they created gold, silver, and bronze policies.

They are locked in a three to one ratio.

Makes it impossible.

How do you get people around the table to actually look at the numbers and say, this is not quite working, what do we do?

Class it is got to be obvious because we are talking about 18% of our economy today overall.

When you have an unsustainable model being built, which is being built today, and you are not having an influx of revenue coming in, we will have a little bit, somebody has got to act.

If you're not have everybody at the table and will not get the younger people to subsidize the older, it will implode.

The problem is politics now are such that president obama and the democrats -- it will not the repealed.

A few republicans and a few democrats put what has to be done on the table to make it accountable and appropriate pricing that obamacare can give affordable access.

What should the pricing scale look like?

I would immediately go to the five to one scale.

Some people might pay from $100 to $500 a month.

Yes.

Especially young people today 34 years of age or 28 years of age, and having to pay a whole lot of money for something you do not need, you will just not do it.

You just pay $100 to get out of it.

) what if there was a penalty of $5,000 if you did not join?

It will go to probably 300 and 600-8800 dollars but still, you will pay until it gets -- make sense.

A higher penalty will work?

Is in there something that just seems inherently unfair about forcing people to do this?

You do not have to buy car insurance.

Car insurance -- you do if you have to buy a car.

Health insurance today is not really insurance.

It is prepaid health care.

We need to make it more like insurance, car insurance.

What you need to do is, instead of promising all the gas and inspections, which is what obamacare is doing, step back, do not promise all of that, appropriately price it were young people will come in.

We need to get healthier people in if you want markets to work.

If you want insurance to work.

If you just want government care, you do not have to.

The idea is it is more for catastrophic events.

A fender bender, maybe you will say he will pay for it yourself.

That is the difference.

Everyone uses car insurance as an example.

That is exactly what happens.

You wait and see get into a nice appeared you waited to get sick, so you price it at that level, instead of all the benefits you do not need.

Preventive care is good erie to do 1000 colonoscopies to pick up one colon cancer, a whole lot of money.

Promising everybody 1000 colonoscopies a day, cut it back.

The whole point is you have got to price something not as comprehensive, bring everybody into the system, and then you can make markets work.

Without markets and the educated consumer -- you were and are a doctor.

You still practice.

We were talking about that off- camera.

How do you say somebody is -- deserves that preventative care and someone does not?

They are choosing out-of-pocket to pay for a colonoscopy.

I am all for prevention.

It is good.

People need to recognize it is very expensive.

It costs a huge amount of money.

Before you promise everybody this very expensive almost luxury, let's be a little take care of the 50 million people out there who do not have affordable access to their child getting of oma or leukemia or their loved one being in a

This text has been automatically generated. It may not be 100% accurate.

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