'Medicare for all would collapse the system,' says health care CEO



medicare-for-all it's a big question for a lot of people as we head into the 2020 elections our next guest has some insight about the healthcare industry because he runs the largest private marketplace for health insurance it recently beat on first quarter earnings and raised guidance for the year and joining us to talk more about all of this and the company's earnings he health CEO Scott Flanders good to have you here congratulations on the earnings report let me jump right there to that that medicare-for-all question what kind of impact would you expect if the Democrats because this is all politics right now but if they were to get some kind of medicare-for-all plan into place what kind of impact would that have on the types of you know insurance that gets sold in a private marketplace as we're watching because it could conceivably be out the window sure I mean the bill that's been promulgated by Bernie Sanders would actually outlaw all private insurance so 180 million employer insured individuals and families would lose the insurance they have now so we think it's highly unlikely that that's in realistic prospect but there will still always be a private insurance market for the treatments that aren't covered by a government plan and when you're looking at the platform as it exists right now the eHealth platform that is and people are shopping between different plans have we seen that change since the ACA and as we've seen the political winds go back and forth over the past several years yeah so e Health's a 22 year old company and we were healthcare.gov before that even existed so that was really a redundant platform that was built to replace what was already available in the market what we had to do because our market shrank in the individual market was pivot to health care for seniors so this year we'll do 90% of our revenues in Medicare I want to talk about seniors because a lot of us have elderly parents who are now in that covered by Medicare but you know doesn't cover all of the costs as the population gets older I think there was a report this morning that the baby boomers are going to be putting an even bigger strain on health insurance and the health sector in general how do you I hate to ask these kinds of questions as an investor there's opportunity there but it comes at the detriment perhaps of some of the people who are going to be able to get the care they need or will they get the care they need well I think we should start off with saying that Medicare is the one aspect of the healthcare system that has high customer satisfaction the hospital's the doctors have all learned to live with Medicare and so it's part of the system that works that's why it's become a popular Democratic platform to say Medicare for all because Medicare is an aspect of the system that's generally delivering on strong patient outcomes had a reasonable cost but they're talking about because of the budget problems in the United States you know that three largest expenses are our Medicare Medicaid Social Security and and defense and they're talking about cutting Medicare well frankly all the more reason why Medicare for all is nearly irrational to talk about you're already saying which I agree with Adam that it's challenged to fund what we've already committed to our seniors so to layer on another 180 million people outside of the employer market into Medicare would just collapse the system but these are commitments that we've made to seniors seniors have paid into Medicare their entire lives it is just not right to think about curtailing those benefits you know Scott the pharmaceutical Ben Ament benefit matters been under siege by Democrats and Republicans that had 20/20 how do you see them are they friend or are they foe do they need to be regulated so you talk about the P PBMs yeah yeah you know it's a big political hot-button it's easy to attack the pharmaceutical industry but it's important remember they only represent 10% of the total cost of health care and the medications that they create solve and cure a lot of diseases and so I personally resist them even though they're an attractive whipping-boy to go after them they have to make a profit on the medications that work to pay for all are they really lowering cost though the PBMs are a different part of the system and they have increased the cost savings by negotiating volume discounts but they also bring an additional layer of expense into the system I mean that's the challenge with the ecosystem of healthcare today it's just so busy and complicated it's hard to know where to go attack the cost does your site help guide when I signed up for health care here I my eyes bugged out okay it's very hard to understand what's supposed to be simple forms is anybody working on clarifying and making it simpler to understand whether it's like Congress or whether it's from the actual purveyors of insurance platform thirteen is a good word to describe it yeah and and it's something you do once a year it's not as much fun as planning a vacation you know we say we want to make buying health insurance as easy as ordering an airline ticket on Expedia okay that's a little bit ambitious on our part because it's hard you do it only once it's a highly consequential decision that's not fun and so people don't become expert in it because you only do it one time a year but that is what we do okay we're not perfect at it by any stretch but we are the most comprehensive shopping comparison engine that exists on the web and very quickly would it make it easier from your standpoint if Congress because there's a push right now to require hospitals to have some kind of uniformity and stated price for procedures and the things that people go to for medical service so that we all understand what at first what we're paying for but then we can go figure out what do we need to buy so that we can pay for it this is something we very much support increased transparency for the consumer who is ultimately going to be the first step towards reining in the increasing cost of health care so you're right on something it needs to be talked about more consumers need to demand that the transparency of pricing you can't find out what the price of some procedure is until act you've already had it all right well thank you for joining us Scott Flanders the CEO from a health

9 comments

  1. YOU DONT MAKE SINCE,,,THE INSURANCE AND DRUG COMPANIES CAN RUN THE HEALTH INSURANCE PLANS AND MAKE BILLIONS IN PROFITS,,THEY GIVE AWAY BILLIONS TO ARE POLITICIANS,,THEY GIVE AWAY MILLIONS TO CEO'S,,,BUT YOU SAY THE SYSTEM WOULD COLLAPSE IF THE GOVERNMENT TOOK IT OVER AND DID AWAY WITH ALL THE WASTE,,NO MORE BILLIONS IN PROFITS,,,NON PROFIT,,,NO MORE CEO'S COLLECTING 30 MILLION DOLLAR SALARIES AND DONT HAVE TO PASS OUT MILLIONS TO ARE CROOKED POLITICIANS…DRUG COSTS WOULD BE MUCH CHEAPER,BECAUSE THE GOVERNMENT WILL DETERMINE THE PRICES,,NOT RICH MIIDLEMAN TAKING A CUT,,THAT KEEP DRUG PRICES HIGH.,,PEOPLE LIE ABOUT THE GOVERNMENT,,THEY SAY THE GOVERNMENT WOULD RUIN THE SYSTEM,,WHICH IS NOTHING BUT A LIE TO PROTECT INSURANCE AND DRUG COMPANIES PROFITS,,THE GOVERNMENT DOES A MUCH BETTER JOB WITH HEALTH CARE THAN THE PRIVATE INSURANCE COMPANIES,,,PEOPLE ARE NOT DIEING BECAUSE THEY CANT AFFORD HEALTH CARE BENEFITS ,BECAUSE THEY CANT AFFORD MEDICAL INSURANCE,PREMIUMS AND DEDUTIBLES,,THROUGH GOVERNMENT HEALTH PLANS,,THEY ARE DYING UNDER THE GET RICH PRIVATE CARE PLANS,,DRIVEN BY HUGH PROFITS..SO PLEASE STOP LIEING TO HELP THESE GREEDY PRIVATE HEALTH INSURANCE COMPANIES KEEP THEIR BILLION DOLLARS PROFITS AND TO HELP THE CEO'S KEEP THEIR 30 MILLION DOLLAR SALARIES AND THE MILLION THE POLITICIANS RECEIVE FROM THE INSURANCE,,HUMAN LIFE IS MUCH MORE IMPORTANT.GOVERNMENT PLAN IS SO GOOD,,THATS WHY MITCH MCCONNEL VOTED FOR GOVERNMENT GOLDSTAR HEALTH CARE FOR HIMSELF AND HIS POLITICIANS BUDDIES,,,HE LIKES IT FOR HIMSELF,,BUT WILL NOT DO THE SAME FOR THE AMERICAN PEOPLE,,BECAUSE HE THINKS HE IS BETTER THAN US.
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  2. Of course an ex CEO will say that because they've been making obscene profits from it. What do seniors pay $100-$120 mo? Most plans at work cost triple or more with the employer covering the same or more on top of that. You don't think that all those $$$ means big profits for the fat cat insurers at the top? OF COURSE IT DOES! I can see where Bernie is going with this as insurers and Big Pharma have been gouging us for many years. If other countries can do it so can we

  3. People like He and their personal very unreasonably high income which are mostly coming from gaming and rooting the system leading to the collapse.

  4. WE SHOULD MAKE MEDICARE FOR ALL FOR PEOPLE WHO MAKE LESS THAN 100,000 DOLLARS,,SO THE RICH CAN KEEP THEIR PRIVATE HEALTH CARE PLANS,THAT THEY SO DEARLY LOVE AND GOVERNMENT SHOULD NOT BE PAYING FOR HEALTH CARE FOR ARE POLITICIANS,,GOVERNMENT WORKERS WHO MAKE MORE THAN 100,000 DOLLARS,,THEY SHOULD BY THEIR OWN PLANS,,LIKE THEY WANT THE MIDDLECLASS TO DO,,,WHY SHOULD THE TAX PAYERS PAY FOR MITCH MCCONNEL AND NANCY PELOSI AND THE REST OF THE POLITICIANS HEALTH CARE WHEN THEY MAKE OVER 175,000 DOLLARS,THEY CAN AFFORD THEIR OWN.THAT WAY THERE WOULD STILL BE PRIVATE HEALTH CARE FOR THE RICH,,WHO WANT TO PROTECT IT SO MUCH.

  5. O M G , Why can't the American Public Do the Simple Math … Insurance Companies = Scam … Want a Raise America …?? 30 to 50 % of the Costs of Health Care Related costs are Insurance Related , Just Ask Your Doctor … Sheese ! Do Some Research … !! .. We Need a Realistic Option / Competition to This Monopoly & Some Form of a Single Payer Option is the Only Answer … Now look at the Wallstreet ' Cash Cow ' in Finance … Some Form of a Public Banking Option / Glassteagal Act would Reduce Corruption / & Malfeasance Dramatically , Not to Mention the National Debt … Wise up People , ' No More Bailouts ' because of Wallstreet Speculation & Bankster Related Shenanigans … Another Crash is Coming & Who do You think is Going to be on the Hook for all the Speculation of the last 20 yrs …?? .. Pottersville … Or Bedford Falls / George Baily … Your Choice …

  6. It would collapse his own private economy, not the country’s. What a fool. Bernie 2020 🔥

  7. why wouldn't Government plans cover everything? in fact Govt. should charge people on percentage of their income for all inclusive medical coverage , they will end up making monies and insurance companies have been kind of middle men between people, their care and doctor's and have made so much monies without giving people complete coverage, people still dip into their pockets to pay for either medicine or some treatments and doctor's are lamenting that they are not paid well by insurance companies either so it means there is something very wrong somewhere, private coverage ought to be for the ones who want it and why should procedures cost so much? what is the reason behind these inflated costs? Government has enough monies to co pay for it for those who cannot afford it because of the costs and are made to suffer for no reason except payments.

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