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tv   Key Capitol Hill Hearings  CSPAN  September 25, 2015 12:00am-2:01am EDT

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i've keenly observed combinations and consolidations happening on that front so i am well aware of what is happening in that state as well as 49 other states given the view that i have today from my perk of a health plan executive. what i can tell you about my experience in that world is for the last 15 years we were focused heavily on acquisitions, consolidations, purchasing hospitals, purchasing physician practices all built under the premise that we will integrate. i will further submit that the buildout had a lot to do with negotiating better price. it was all about negotiating better price. i way of delivering better quality. i would argue today in terms of our commitment to value payment
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and new models of care delivery, supporting practitioners with data that gives them legitimate information to better manage care, i think today is a totally different day than what history suggests in terms of what the old story looked like versus what it looks like today and what it will look like going forward. i think competition is robust but more importantly our alignment with providers is value added to the new markets that we've come upon relative to whether it's small-group, large group, aca related, it's all connected in terms of the value to the market. >> i'm sorry my time has expired expired. i'd like to have that communicated back to my office if anyone has a response on the. >> thank you very much i've had a chance to review much of your testimony so i will be fairly brief given that a vote has just been called and this has already been a very long hearing from many of you. if i might, to mr. swedish, your testimony outlines the importance and someone who has been intimately aware of sigma's work in improving patient
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outcomes and quality, how will these partnerships and programs either expand or increase after the merger or be negatively impacted by the merger and what kind of metrics will you use to make sure they continue and continue to have a a positive impact on patient outcome? >> thank you for the question. the way we envision it lays out a very strong model of building on the successes of both organizations. i mentioned before, i believe cigna has built out a wonderful model around accountable care and delivery methodologies. they have generated a situation where patients are more compliant with diabetes measures to the extent extent of somewhere around 25% improvement they witnessed a 45% expense
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reduction. long story short, i think the combination will be synergistic in nature and political performance will be greatly enhanced with data. taking data repositories and melding the data to create valuable information for the provider community. i believe care delivery will get better because our stewardship of that data and the stewardship that we then administer in terms of our partnership with physicians will become more enhanced by virtue of the benefits and strengths of both companies coming together. >> a number of you talked about how the insurance market is either national or local. i think there is question
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whether it should be looked at and measured locally. both programs have several data analysis individuals doing hard work. should there be a merger for increasing your foot print in my home state and what is the significant employer base that your two companies represent and do you think that given the lack of competition in the marketplace, in delaware, what a significant negative impact that has had in some ways. what opportunities do you think there might be for expanded opportunities on the individual exchange or another market segment question. >> senator i appreciate your comment about the workforce in
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delaware. let me first underscore that we are vitally concerned about all of our associates nationally. we really focus heavily on building a culture of folks that is rooted in our commitment to creating value in the marketplace. i do want to state that on a national perspective. that is critically important in terms of our relationship in support of all of our associates. in response to delaware, there is a division that is analytically engaged with pharmaceuticals. about 150 associates with respect to cigna's presence, they have an incredibly successful international outreach, going global as you know, and the number of associates there probably approach 500 plus. our sense is that will remain in delaware. it's a critical contributor to
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the delaware economy. we recognize that and quite frankly, we would expect both of those areas as well as research to continue to grow. thank you. >> thank you mr. chair and i like to think the panel. >> some industry observers have suggested these mergers might provide some necessary and helpful market pressure to balance out the widespread consolidation that is starting to occur among providers and among providers who are getting into the business of offering insurance plans. what is your response to that suggestion? >> i think it's just the opposite. right now the insurance field is already incredibly consolidated.
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we were talking earlier about barriers to entry and there have been studies from the kaiser family foundation and the commonwealth fund that show 97% of the medicare advantage markets lack competition. if you look at the blue cross blue shield plans, in 40 of the 50 states they are the largest plan. we think you need to have continued robust competition which leads to innovation and we don't see how these deals promote that aspect of it. as for the provider -based plans , while they are out there and they are growing, they pale in comparison in terms of scale to what we have seen with regard to the insurance company side of this. while they actually bring great value and get great quality ratings it's still hard, hard, in the face of some of these other entities, two in fact get into these markets.
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very often you have to have a minimum number of lives which is sometimes very difficult to b's provider based plans to do. >> so they don't weigh the same, same, that's one way of putting it. >> exactly. let me get back to mr. swedish. i'm sensing you want to respond to that. you can work that into your answer. they are kind of connected. i've got questions for both of you related -- both of your company's represented entry into health insurance markets is relatively easy. if that's the case why not enter into the market with humana and cigna r ready in and enter into those instead of buying those competitors? for example why can't they just expand their medicare advantage opportunities instead of buying
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humana? i would like your reaction to that. also any thoughts you've got about whether new entrance are likely to remain in the marketplace and if that makes a difference. >> thank you mr. chairman, i think the trade-off whether or not to enter market versus acquire markets is simply an economic discussion. how do we want to employ our capital and how quickly do we want to get there? we were going to spend the next five years getting into markets that covered 70% of the medicare eligibles. why is that important? seniors are more portable and want to move or look around. they want to keep the benefits that we offer at the prices we offer which in a lot of cases, more than half, half, our zero premium policies for full benefits. with this acquisition, when it closes, if appropriate, we will
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be covering 92% of them medicare eligibles across the country. they have that portability and they are able to move around. >> mr. swedish. >> i can probably echo some of the same comments, but with respect to being specific to our combination, combination, certainly we have spent considerable time analyzing the economic of the transaction, the value add to our members and more importantly, pivoting as an organization at a very fast pace relatively to how fast the market is changing and the demands of the consumer are changing whether it's a national count or small group individual. any segment that you look at shows the speed of change in the marketplace and that's a
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combination that brings new value to the marketplace. in that regard we believe this economic, nation makes a lot of sense for us because we can come to market faster, better and in turn create more value for the consumers. otherwise, quite frankly we are dragging with respect to the responsiveness that we believe is necessary to best serve the marketplace. final analysis, we are going to craft and administer transaction that truly is in the best interest of not only our consumers, but also the business itself in terms of being a sustainable business going forward. we believe this combination creates sustainability and value to the customer in equal combination. >> in the interest of time and there's been another vote called come, i'm going to adjourn the hearing. before we adjourned you have any questions or comments to add question. >> know i appreciate this
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hearing. >> this has been very helpful. thank you for being here today. we will be adjourned. >> on the next "washington journal" pope francis's visit to new york. the second is it on his u.s. trip. "washington journal" is live every morning at seven am eastern on c-span. we welcome your calls and comments on facebook and twitter coming up friday the tenth annual voter summit. we will have live coverage at 2:00 o'clock eastern time on c-span three.
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>> i went back to the office and i i called them up and i said mr. mayor, i've just been to club 55. don't you realize people are watching what you do and where you go. they say you sit there all the time i watch naked dancing girls. there was a pause on the phone and he said it's nice, nice, isn't it. >> this sunday night on q&a, the political corruption in dc, maryland and virginia. >> forty-four attorneys general from around the country sign the letter saying they agreed with governor mcdonnell that what he did was politics not bribery. he should've reported the gifts and that might've been a crime but he didn't report the gifts. $15000 for a child's wedding, $50000 loan, the problem was he
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had been considered a vice presidential candidate and was over his head when he got into the governor's office. this was another case where you are a public figure and you let your messy private life combined together. >> sunday night at eight eastern and pacific on c-span q&a. >> next a panel of entrepreneurs and ceo discussed the effects of government regulations and tax code on businesses. from the annuals deemed vote business institute in colorado, this is one hour ten minutes. >> we hope the next hour and 15 minutes is enjoyable for you. as moderator i only wish i had one hour 15 minutes with each one of these people that is
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here. you have a very distinguished panel. let me introduce peter who is the chairman of tours. he is a colorado native. the coors brewery name has stretched over five generations of the family. it started by pete's great-grandfather in 1873. that's pretty amazing. in addition to his corporate responsibilities, he is maintaining leadership positions in the energy industry, boy scouts of america and young presidents organization, ducks unlimited and more.
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i want to pause for just a minute and mention one other great thing about pete and his family. they have done a tremendous amount of the land for p philanthropy. he has given a lot to the state. i will mention one that i thought was particularly appropriate and that is in 2010 he was named by the citizen of the west. thank you very much for being with us. [applause]. our second panelist is paul. he is an entrepreneur extraordinary. just three years ago he founded a company called antidote. it's a technology company in
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baton rouge louisiana. he was also a 2014 candidate for louisiana congressional seat in district six. three years later, his company is the leading software platform for campaigns in the u.s. and tells tell me more members of congress from both parties use antidote than any other software system for online contributions. they give the ability to securely collect online donations and managed owners. in just three years, they have collected donations in all 50 states and from 23 different foreign nations. that's a pretty amazing record. if his name seems familiar to you it's with good reason. his grandfather was the legendary coach paul dietzel of the 1959 championship team at
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lsu, coach of the year at west point and university of south carolina. welcome. [applause]. >> my good friend heidi has a a very unique story as entrepreneurs and ceos usually do. she is the founder of camp bow wow. it's the largest pet franchise in all of north america. it wasn't an easy path to success. she lost her first husband in a plane crash when he was just 25 25 years old, in fact on his 25th birthday. close to being out of money and close to out of hope she opened her first franchise facility in 2000 in denver. she now has over 200 franchises. camp bow wow is one of the largest women led franchises in
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all the country. one of the largest fastest rowing brands in the pet care industry and a 100 million-dollar leader in the pet care sector. she was recently recognized as one of the most promising leaders. in her spare time she is a director of a a foundation in colorado and serves on advisory boards for the leadership program of the rockies. she also founded a nonprofit which she calls mom fight back. it helps mom some power mom to fight back. she is a mom of four children herself. welcome heidi. >> jim is the vice president and ceo of nyman enterprises. it's a third generation company
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founded in 1936 by his grandfather. the two facilities in south dakota and one in wyoming and now one in colorado. they are also in the ranching business and owns a golf club in wyoming. his son marcus is the fourth generation to work in the company. congratulations to yet another family owned business. they have been recognized by the small business administration, administration, the small business person of the year by the better business bureau with their torch award for business ethic, the forest recognition in the wyoming economic development stabilization board, independent
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force product association, president of the board of trustees, on and on and on and last but certainly not least, he is also on the economic advisory board for the federal reserve bank of kansas city. ladies and gentlemen i think you would agree you have an exceptional panel here today. i'm going to invite each of our four panelist to make a brief opening remark about the state of affairs of the economy, their company or whatever they think is important to share with you today and then we will get into some questions. pete you want to go first? >> thank you for that elaborate and unnecessary introduction. when you say something about yourselves and i said i can save a lot of time because he already did it. the one thing he left out was that i had the privilege of
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running for the united states senate in 2004. many of you were helpful in that we have something in common up here, we all lost our last election. [laughter] unfortunately. i think we will get into some of the details about the business as we go through the day so i will pass on to paul. >> think you pete. >> thank you also, it's humbling to be up here on the stage with such great business leaders. i look to to them to see what i can become throughout the next ten or 15, 2020 or 30 years of my life. to look at the business environment in our country, it's fascinating to me. it is easier than it was today
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to start businesses three or five years ago. there are so many regulations that make it hard for entrepreneurs to jump in and create a business. you look at every day the government is picking on businesses. you see an day-to-day example of cooper. i think one of the things that we have to do is unlock our innovators and the next generation. we have to get the next generation of leaders and innovators active and engaged. that's something i'm excited to see so many millennia else speaking at this. it's a pleasure to be here with you and i look forward to the panel. thank you. >> heidi. >> [applause]. >> i know a lot of you in this room and i think most of you know who know me know how
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passionate i am about innovation and entrepreneurship and how i believe that's the key to unlocking the potential in our country. paul set a very well that our youth need to be encouraged to start their own businesses and excited about it. i spend a lot of time talking to college and high school kids about the beauty of starting your own business and how nowadays they can do it with the click of a mouse or on their phone sitting at home instead of watching tv. i think it's unfortunate that the business environment is not very good for starting your own business anymore. it's a lot different than when i started my business 16 years ago. government overreach, taxes, it's so complicated to start a business these days. my husband is starting a new barbecue restaurant. he is starting a single unit restaurant in westminster has been mind numbing to watch all the things he had to go through. it's reminiscent of when i started camp bow wow but much more mind-boggling now.
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i want to inspire moms in colorado to get involved and raise their hand and be the change they want to be in politics in the world. i think we can really lift them up and give them a voice and i think they are the swing vote in colorado. we will see how that goes. >> thank you heidi [applause]. jim. >> bob, jennifer, the whole group here, what an honor to be with this whole group. at the humbling honor to be part of it. thanks for the great introduction so i can skip part of my talk. i want to go back one step that was missed. my granddad was a a corn farmer during the great depression in colorado. he had to sell out and my granddad then went north to find a new business and started making grain doors for the railroad business and that's how he got started in 36.
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i jumped to my children, well, my dad was six years old then. now he is 85. we've got him to half time and in his view that's 12 hours a day. he's still working six or seven days a week and runs 700 head of cattle. i'm proud of my children. my daughter is working for an organization in dallas. my my son just got deployed. he is heading overseas soon. >> god bless him and you [applause].
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>> when i started we had 15 employees. now we have 480 and 350 independent contractors that are loyal to us on top of our employee base. i've been on quite a ride here. our company is 80% dependent on the service, but their hands are tied. we've strapped them with regulation after regulation. endangered species, that is another issue, it drives me nuts to see that we will protect millions and millions of acres to one species at the expense of many other species. how about us humans? particularly in our industry, most most of our mills are in small communities and that is the lifeblood for agriculture
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and the timber industries of those small communities. they could be destroyed and when are as this is destroyed it can destroy a whole community. just a quick note, we are clearly overstocked. they're not healthy right now. that's why we have a a bug epidemic. there's a lot of other reasons people look to, but with the dead trees, we also have the fires. the next challenge that strikes me currently is the exchange rate. the exchange rate, the currency exchange rate between us and canada, canada has gained close to 30% or $.30 on the dollar in the last 18 months and guess what, number prices have toppled 25 to 30% in direct relationship with imports from canada where
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they would normally send them to china. i believe in free trade but i believe in fair trade. it can't be a one-way street like this government thinks it should be to set an example. the third issue i have is getting a good quality education for our kids and employees. trying trying to find good educators and students to come to work for us has been a tough challenge. on top of that to find those students that want to move to a a small community is really a challenge. we are short forrester's him a short management and we are short really good electricians. and high tech. we have computers that cut around the curve of a tree. almost all of our equipment is very high-tech.
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i was on the board of trustees and i constantly, for 12 years, tried, tried to talk and influence the university to say this generation is the smartest generation ever. but this education system wants to kill them in a certain direction. if we teach these kids a balanced education, they are smart enough to figure out which sides to go. just give them both sides of the view and they will come along. i have confidence they will come up with the right decision. :
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>> as. >> and not feeding us reach. >> go through a few cases that illustrate dramatically and visually what remains to live is a society of
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310 million different people who move help stick together because they believe in the rule of law on american businesses. >> next, a senate intelligence committee hearing on
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cybersecurity threats to the united states. the committee heard from admiral michael rogers, nsa director and cyber commander. this is 90 minutes. [inaudible conversations] >> i will call this to order. of the plate to welcome admiral rogers and does you will though we typically hold our hearings in closed session to review your classified programs given the nature of these programs to protect the sources of intelligence that is understandable but today however we want to assure
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the american people have an opportunity to learn more about the nsa the mission they were tasked with that we return to combat the increasing cyberthreat to our nation. international and economic security our top priority and the attacks increase in in scale and scope and complexity the office of personnel management suffered from one of the biggest cyberpreaches our coverage has every countered and there are countless other recent examples from the of public jam private sector. while it works in secrecy all of us expect you are front and center in the foreseeable future to educate the american public. , by to take a moment to
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thank you and your work force for your dedication and the critical work you do and you are accustomed to the direct questions that we ask often in closed session to challenge you in your organization always to be better. today represents a unique opportunity to educate the american people on what you do and the posture of the growing cyberthreat and to look forward to your testimony to the extent they you can do so and we recognize how difficult that is and we would remind my colleagues in the question
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is on classified programs that would require him to divulge any sensitive information and i will consult if we put him in that situation and. now i turn to the vice chair >> to allow the committee a to look at the important work and the challenges they face to keep up with national security threats. director rogers, as we have discussed many times, and this day and cybercommander at the forefront of major national security challenges and policy decisions before getting to my statement i want to praise the worth of the nsa has done to enable the rest of the government
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to identify and stop terrorist plots directed or inspired by the islamic state of iraq here in the homeland. by no means is it over but there is a number of important disruptions with good law-enforcement work and you figure in that any major way. thank you very much. as the fbi director noted before the floor in tears now have direct access into the united states like never before. now more than 200 americans who would -- traveled or attempted to travel to participate in the complex and there remains a significant concern.
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of course, when discussing that threat we have to recognize that due in part to weeks of classified information with the availability of think it did means that cannot be collected increasingly there is a limit whether nsa can contribute. we will have a chance to discuss the change and there are numerous reports suggesting the administration is rethinking his support for any of legislative solutions to this problem we welcome your thoughts how to approach the going direct issue in the more you can tell the public a better. certainly that have caused the opium database demonstrates the need for better protection of
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personal information but i would very much like to hear your view if it is either/or. well still allowing the government to gain access to critical information as part of dick every your input and about the committee is calling the implementation of the was a freedom act. to hear how that transition is going. there will no longer collect phone metadata and conduct its own queries a and
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instead to a for mayor will have to obtain a court order for communications providers to query their own records do have responsive information and it is important for the public as well as us to know if this transition will be complete at the end of a 180 days period and if you assess of the system in place at that time will read your operational needs. of a bite to know if this system was fully in place can achieve that goal to provide nsa with responsive information from a broader set of records bin of what had before the u.s.a. freedom act passed or if there is a relatively small percentage that was available before the change for perot you briefed the committee recently on the reorganization you are putting into place it would
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be appropriate at this hearing for you to describe that organization to the extent of the u.k. and, why it is needed in which changes are being made. thank you for the work your agency does. think he for your leadership >> we will skip the one question on this open hearing in going to five minutes after the admiral has testified. but the floor is yours. >> fed chairman, members of the committee thanks for inviting me today as a
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distinct honor and privilege i appreciate the opportunity to speak to about the essay who we are what we do and how we contribute to the nation and security. end what the fellow citizens do to defend our nation around the world nsa plays a critical role in the national security system with the leaders and military commanders american enterprise depend on our efforts. the performers is headquartered in maryland outside washington with facilities and 31 states ted stevens i am probably a
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member of comprises individuals from every corner of america. representing every service with reserve members to have the analyst thank collectors and mathematicians and cryptographer sank computers and bantustan to many others to list by name. and then looking end well over 75 percent as billions of holding bachelor's degree or higher purpling quist looking at a proficiency 120 different for the languages almost 40 percent in the technology fields more than
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any of their federal agency. in addition to keep our country save our employees and hints communities by volunteering in classrooms and help to clear the appalachian trail. they donate to read overclass -- to the red cross and donate to the family hunker drive. the affiliate's our marines collecting for toys for tots and soldiers coaching little league. but they were carved to protect civil liberties. the me explain their main duties. the information and
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insurance mission and is to protect and five will security insights that our nation's leaders in the military can communicate and adversaries do not have access to secrets to develop new opportunities to share insights with the private sector and the nsa has evolved shifting from analog to digital communication following the emergence of networks and functions of the modern and mobile society now playing a key role in cyberspace assisting efforts to mitigate or a teacher cybersecurity threats.
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in concert with partners to ensure users and operators and administrators maintain control of systems and data and gives leaders unique insights into foreign powers and their agents to defend american a and allies to collected and analyzed intelligence and counter intelligence arrived from the interception of foreign signals and communication and. it does its work in accordance with strict guidelines to collect foreign intelligence to respond to specific requirements about was deemed necessary to warn and progress strategic surprise.
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to drive to revive their priorities of the military leaders the of privacy and civil liberties on a daily basis to the customers and partners across the globe. to rely on tsa to help reach success for. they are part of the fight. our requirements but to communicate locations to disrupt attacks and and this
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say directly supports the military with information to provide for his protection of vindications of learning to keep the troops out of harm's way also helping the united states and allies spot illicit fund transfers how terrorists to open -- hope to cover their territory. also threats tocitizens and personnel and embassies around the world. we devote resources to the international campaign to halt the spread of weapons of mass destruction. sharing dated to keep weapons out of the wrong hands to keep the nation safe. muses the efforts of komen and security to protect critical infrastructure from cyberattacks can support cybercommands to help
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develop the capability and capacity to accomplish its vital missions because you know, in the physical world is constantly evolving entry must keep pace to maintain our vantage that our nation and is counting on. networks and communications and data are at risk from threats these include road states and terror showing a willingness and aptitude to employ sophisticated capabilities against us and allies anyone they perceive as a threat or a target. and in addition certain states are disposed against collusion with their rifles with the exploitation against us and our allies. those targets extend well
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beyond government to personally identifiable information and putting privacy of all americans at risk. with those techniques and procedures used the same engine and the same communication devices that we all use as terrorists become more savvy they must keep pace and an essay will continue to rise to the challenge. the use of intelligence dates back but the predecessors were keying with their partners. >> today the men and women
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fight terrorists around the globe for those who may into into a cause harm to communicate with the sleeper cells but jeff hostetler of foreign actors remains confident and with pioneered intelligence from cyberspace while enabling military counterterrorism operations and realtime in full compliance with the constitution and though lot every employee takes a nose to defend the end the citizens that the guarantees they just repeated this up online 11 it is not the trade-off and nsa supports
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both pope to represent an opportunity of another chapter nsa plays the indispensable role to keep the peace and secure the nation and. to facilitate positive outcomes for the allies to deliver this well over 60 years. we are rightfully proud of that accomplishment and above the continue and that the american people take pride. thank you for the opportunity to be here today. >> we go to five minute rounds based on seniority.
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for the private sector gsa faces stiff competition from the private sector to recruit those individuals with the skills that are needed that silicon valley canada offer? >> the difference is they're competing in the same work force. be a vintage that we have is we experiences as a uniform individual. it is the essence of serving something bigger than yourself it is not easily replicate to retract cutting edge technology firm capable men and women that they could earn a tremendously
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greater amount of money working of the outside but that sense of mission and purpose with that the dose of compliance that is the greatest advantage. >> and is a plays a significant role with the terrorists' plans and intentions and communications to defeat the attack. obviously of we cannot go into great detail here but to what extent that you can elaborate what end is a is doing to combat terrorism and more specifically what every american and is focused on it and that is isil. >> without going into the details of how, broadly used the ability to work communications tour generate insight into what other groups are doing.
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largely through our expertise. the challenge of the counterterrorism mission and the al qaeda peninsula and more changes in their behavior the last two years than any other target. day reference immediately compromises and read and zero but adds a result it is more difficult combined with the rotor changes of technology with encryption use and to do touched but in
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in the air vent to say that it's so i will change and always remind them the nature of our profession is vacated vantage jammu's of vantage overtime because behavior always changes. >> why should the american people care whether you are successful or not? >> the insights can ensure the security of every citizen of the nation there will not pretend we are a perfect organization but i have a proud and quite frankly the only reason i am still doing this is because the mission is incredibly important to the nation and our allies.
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>> would assure greatest resource challenge? >> if you look that the growth of cyberchallenges will get the proliferation of communication technology with a workforce that has not grown. fiscal years 16 we will start october 1st juicy how the budget comes out but this is the fifth straight year of a declining budget so one of my challenges is tottery continue to get those insights even those resources continue to do decline. >> mr. chairman i am here to get through three questions in five minutes. going to the u.s. a free iraq how long did taken in
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last to do a query under the old system and how long does it take to do it at the telecom companies? train wreck i assume you're asking that includes with that analysis but under the rules system but i have to do notify iterating what i did and why and the basis of my determination and in each case it is driven by the
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fact river getting ready to pursue tactical action is summer in the world i thought would precipitate a reaction and as a result of unauthorized access and that process with these briefing me and approving it probably something less than 24 hours. with the old system not using that was. >> you have five or six.
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>> u.s. me to compares to iraq but the transition must be complete. >> you have not done any? >> we have not completed the process this will take a number of months to work with the providers to make the technical changes on the provider side. >> got it. "the new york times" reported our country will ask the chinese tour embrace the code of conduct of principles for cyberspace that no state should allow the activity that intentionally damages critical infrastructure. . .r perspective, would a cyber arms control agreement along these lines be valuable and enrc


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