What's the Ultimate Price of Healthcare Reform?

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July 18 (Bloomberg) -- New York Presbyterian Vice Chairman Herbert Pardes, Manhattan Institute Senior Fellow Avik Roy and National Federation of Independent Business's Jean Card discuss Health-Care Reform with Trish Regan on Bloomberg Television's "Street Smart." (Source: Bloomberg)

President obama fights for health care reform yet again after house republicans against his legislation for the 40th time.

Our broken healthcare system threaten the hopes and dreams of families and businesses across the country who feared that one illness or one accident could cost them everything they had spent a lifetime building.

And, step-by- step, we are fixing that system.

It seems like states and businesses are less concerned with the idea that one illness could cost them everything.

Instead, they are most focuses on the costs associated with the legislation itself.

What is the ultimate price of the president's health care reform?

Joining us is the vice chairman of new york presbyterian hospital as well as two others.

Welcome to all of you.

What will healthcare reform really mean for new york presbyterian's "bottom line, as well -- new york presbyterian's bottom line as well as patient care?

When they are not covered, they cost more, they get sicker, they do not come for health care as often.

If we have more people covered, that is fine.

There's a variety of other things, like the idea that they eliminated the exclusion, the capping of lifetime benefits, the people can stay at on their family insurance -- that people can stay on their family insurance.

There are certain costs associated with this, including the fear that you're going to run into a two-tiered health- care system.

That is a concern.

We don't want to undercut quality.

New york is the.

Is -- new york presbyterian is a distinguished hospital and legal -- and we want to keep it that way.

We agreed to take out cost.

We will take out $1 billion.

We will do everything we can to protect quality and make it even better.

There are efficiencies you can find.

The big concern here is, without any kind of market for -- without any kind of market force in play, the danger is that you are -- your costs really cannot be controlled.

That they could spiral out of control.

One of the reasons why hospitals were really behind the affordable care act and supported it is because the law dragon and a lot more -- law dragooned a lot more resources.

Is that a fair word?

There is taxation -- , i don't think it is fair to say hospitals are doing it because of that -- i don't think it is fair to say hospitals are doing it because of that.

We are doing it to provide healthcare and we want to see sustained high quality.

That is certainly what hospital say, but i think a lot of people are concerned that hospitals have too much market power and raise prices instead of focusing on -- i guess that is why there are so many hospitals that go out of business.

In the private sector, hospitals -- businesses go out of business all the time.

We want patients to be taken care of right, high quality, and some costs down.

And i'm sure such rates you charge insurers have declined as a result of that, or have they not?

Have the rates that new york presbyterian charges insurers gone up or down in the last 10 years?

I think they are going down.

The notion you have that people who are doing this business are there primarily because of financial issues is simply erroneous year i don't castigate -- simply erroneous.

I don't castigate groups of people.

But the economic incentives are to spend -- get people to spend more money on healthcare.

Hospital does not have incentive -- hospitals do not have incentive to get it to cost less.

We spend money to keep people out of the hospital and out of the emergency room.

We provide people who can speak spanish and help them navigate the health care system.

We reduce the number of visits and hospitalizations.

Why are we looking for more volume -- why do you say we are looking for more volume?

The data is overwhelming.

There is no issue between the left and right on how much we are spending on healthcare.

Spending keeps going up.

It is 18% of gdp, the highest in the developed world.

Because people are doing some good things.

In needs to be a lot lower.

We will work on that.

I want to bring you into the conversation.

Take it a slightly different turn.

As we debate on the economics and whether or not it is going to be good or bad for hospitals and patients, another concern happens to be small business owners.

If you are someone who is going to get that extra employer -- employee, it turns out it is going to cost you more in the way of healthcare.

Are you concerned at all that employers will not be adding to their staff as a result of obamacare?


This law is full of bad incentives and bad news for small business.

It is all about cost.

We do not expect cost to go down for those who purchase individual and small group lands.

We expect -- small group plans.

We expect them to go up.

The employer mandate remains a disincentive for hiring, which is bad for the half of the economy that is small business, a sector that has very little optimism and is in bad shape.

It is all bad news.

It's -- it's all -- not just about cost.

It's about quality.

We want to reduce readmissions.

We want to do everything we can to make healthcare in the country better.

Maybe you could comment on the "new york times" article which appeared earlier today which suggests healthcare costs for new york city residents could be cut by as much as 2/3. can you comment on that?

You just asserted that healthcare is automatically going up for everybody.

Lex i know the peace you are talking about.

I think it's an -- i know the piece you are talking about.

I think it is important people look past the headline.

New york is a case where it was already very expensive.

It could be different from other states.

It is a state-by-state, sometimes a locality basis in terms of how high the premiums are.

We don't think that is particularly relevant to the rest of the country.

I think there are variations, but you have to take it as it is.

There are going to be reduced costs for many people who have health insurance in new york.

If we could put that graphic backup.

New york is a very unusual situation.

Under the mario cuomo administration, they instituted a law that forced everyone, regardless of age, health status, precondition -- pre- existing condition -- young and healthy people drove out of the market.

That drove costs up and it made insurance unaffordable.

Very few states -- almostare actually similar to new york.

Here is the whole thing about obamacare.

-- almost no states are actually similar to new york.

Here is a whole thing about obamacare.

You are spreading costs out.

You have to think about it on the individual basis.

If you are the healthy 25-year- old who goes to the doctor once a year, in new york state, you are now going to spend, because of the individual mandate, 4000 thousand dollars a year on health insurance?

That is not a good deal for you.

You have to bring more people into the market.

You have to solve a national problem.

You have to make healthcare less expensive.

The problem with the affordable care act is all the regulations that it imposes makes healthcare more expensive.

In california, you can buy a really good individual health insurance plan for $90 if you're 40 years old.

If you are 20 years old, it is $70. people are now having to pay 25 -- $250, $300. it is not a good deal for young people.

If young people do not enroll, this is -- then the system will fall.

Do you wear the cost will be too significant and that young people will not participate?

-- do you worry the costs will be too significant and that young people will not participate?

I don't share that concern.

I do agree that there is going to be very billion -- be very

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


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