tv Sunday Morning Futures With Maria Bartiromo FOX News March 30, 2014 7:00am-8:01am PDT
>> i hit the ball. >> that's after the show. have a great day. >> the clock is winding down on the obamacare enrollment deadline, or is it. i'm maria bartiromo. this is sunday morning futures. one more bending of the rules by the obama white house as they face more bumps and bruises. what it means for you, your health and especially your money. when the ceo of merck, the largest pharmaceutical company in the world gives us the inside track. obamacare will cut millions of jobs, but if unsrpt persists, could that rise even higher.
former treasury secretary joins me as we look ahead. >> happy sunday and welcome to a brand-new sunday. different than anything you have seen before. sunday morning's futures. the first inside lock at the week ahead. unlike other programs who only bring you washington, we will discuss how to recreate opportunity and get america back into an opportunity of economic and financial leadership. we bring you face-to-face with the most successful men and women in america that takes us straight to my first guest. he is the ceo of the cleveland clinic, one of the best hospitals in the country by u.s. news and world report. good to have you on the program. welcome. >> good morning. how are you in. >> i'm great. your thoughts on this latesttene act. >> we are trying to get more
people enrolled and that's the reason that the white house did that. >> you are trying to get more people enrolled. what have you seen so far? >> we so far have about six million people signed up for the exchanges. that's out of much bigger potential. they have extended the sign up time simple low to keep people who have explored the opportunity and have not yet gotten the insurance assigned. >> i want to talk so much more about this with you. plenty more to talk about. let's get a hard look at obamacare enrollment and where we are and where we are going. fox news correspondent has been out with that. >> great to be with you. >> good morning, everyone. there 36 hours to go and the white house defense of the program said health care costs
for all of us, the numbers do not bear that out. the vice president joe biden boasting 5 million or 6 million enrollees would be a hell of a start. is that enough? the office said seven million people needed to be signed up by tomorrow night and last month it would bring that number down to the six million the white house said that have enrolled. the number of younger healthy people that experts say are needed apparently are not there. the government had said over one million between 18 and 34 enrolled, putting that at about 25% of the total, but the goal was 40%. critics say that simply is not enough healthy people to keep it all going. for the rest of us at fox news, it shows 40% of americans support obamacare with 56% against it.
after 35 major delays, would it be better to go back to the old system? half say go back and 42% say no. now the mckenzie survey found 27% of those who bought obamacare insurance were previously uninsured, up from a mere 11% in january. it turns out those who did sign up, only 25% have not even paid. after all this, the goal of insuring the uninsured remains elusive. they promised uninsuranced americans would be covered, but in one decade from now, about that same number, 31 million americans will still be uninsured. millions are now covered and others had their own insurance canceled and premiums hiked and some refusing ting to participa. the cost of good intentions remains uncertain. maria? >> we are back with more from
the ceo of the cleveland clinic. let's talk about the implications. clearly you want to see more people having access to health care, but what about the cost? what are the actual implications to individuals and businesses that you see taking place? >> people have signed up about 3/4 find premiums higher than previously with other insurance. what we know is it's going to have a major effect upon health care providers. we know, for example, we will get paid less for what we do. medicare is making about $415 billion out of medicare expenses over the next ten years. hospitals are going to be paid less for what they do. and we also know insurers are paying less too. we have to become more efficient in how we deliver care which is a big change for health care
providers. >> is that why we see such consolidation? >> no question about it. the health care in the united states has been an industry overtime. every community had their own hospital and positions in small practices. physicians are coming together in large groups and hospitals are coming together much like you saw in the airline industry. 20 years ago in the airline industry, there were 34 airlines and efficiency brought them down to four. we are seeing the same thing in health care right now. >> what should people think about? if i'm anticipating premiums to go up and if you are here saying you are running one of those best hospitals and companies out there and you are going to be paid less for what you deliver, how does it play out? >> people are signing up for insurance and need to understand what they are signing up for. individuals are going to be
responsible for a bigger proportion of their health care bill than previously. they need to educate themselves as they go forward. we in health care need to reduce the cost of delivering care to cover more people for less money on an individual basis. the major disruptors happening across the health care system are decreasing what we get paid. we used to get paid for each individual act of taking care of a patient. now we will look after populations. this is a huge change across the largest industry in the united states and affects 100% of the people and almost 20% of the gdp. this is an enormous social change in the united states. >> how does this look different, the industry overall. how does it lock different two years from today? >> we can't really tell what the total effect will be. how many people will sign up and what they will sign up for. it will be interesting to see
what happens. clearly we will see consolidation of a health care provider. we'll see consolidation of the payers in the private sector and increasing number of people who have private insurance have high deductibles. 36% of private insurance is high deductibles. that means you are responsible for $3,000 to $6,000 of your health care bill every year. with that is quality and transparetran transparency around cost. they will shop where they can get the best price for health care. >> how are they going to be able to measure that ultimate care? if you are saying you are not going to be paid for the volume of services and you will be paid overall for the quality, how do you measure that? >> that's really -- measuring quality and health care is a
very difficult thing. this has been something that i worked on probably for 25 years now. you have to understand that it's not only the fact that you take care of somebody or have a low mortality rate for a operation, it's the severity of the patients that you are looking after. measuring quality is not just a straight forward yes or no. it is also needing to be adjusted. this has really taken place in cardiac surgery starting in new york state about 20 years ago. it has been a progress to learn how you begin to risk-adjust people. it's a complicated process and difficult to go to any one site and see what hospitals are providing and what quality aren't. it's easier for people to understand how much something costs and people are more apt to shop for cost i believe in the future than they will about quality. >> great insight as always. we appreciate your time today. >> nice to talk to you.
>> and to you. how will these ongoing questions about obamacare impact jobs? larry sommers will respond live next. lots happening this coming week that can impact the bottom line including the crisis in ukraine. jobs numbers out and we will talk about that with the panel including the architect of obamacare and romney care. a leading analyst and more as we look ahead on sunday morning futures. i procrastinated on... buying a car because i knew... it would be a scary process.
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(knochello? hey, i notice your car is not in the driveway. yeah. it's in the shop. it's going to cost me an arm and a leg. that's hilarious. sorry. you shoulda taken it to midas. get some of that midas touch. they tell you what stuff needs fixing, and what stuff can wait. next time i'm going to midas. high-five! arg! i did not see that coming. trust the midas touch. for brakes, tires, oil, everything. (whistling) . >> welcome back. the unemployment rate stagnant. no help from a recent report that obamacare could ultimately cost the u.s. another 2.5
million jobs. they explained to economists known for working across both sides of the aisle highly regarded. the director of the economic council and professor of economic and harvard. it's wonderful to have you on the program. welcome. let's talk about the impact of this affordable care act on jobs. whether it can the loss of jobs or a change in terms of employer schedules where they are cutting back hours so they don't have to offer health care. what's your take on the impact on jobs? >> i think there is a lot of exaggeration and what's being discussed. if you love more and more people working full time rather than part-time over the last few months, i don't think there is any evidence yet that that's a real issue. ceo predicts that for 2014 the effective health care will be to drive the unemployment rate down and the studies everybody is talking about leave out the
points of the program. they leave out the fact that health care costs are coming down that makes businesses more competitive and leads to more hiring. we had the best record on health care costs over the last three. they leave out the healthier population on productivity and people being able to work longer and delay retirement. it's a partial analysis and may get at some kinds of things, but my read is that joining the world in controlling health care costs effectively and having a population that is fully insured, that will make a stronger and not a weaker economy. >> what about the small and mid-cap businesses that say it's too expensive and we don't have enough clarity. the larger company that is sitting on trillions in cash because they have no clarity on health care or taxes for that matter. >> they don't say it's get got to do with health care.
there is a real issue. we do need clarity on the corporate tax debate. it is crazy that we are allowing the cash to stay abroad with the prospect that people have that they will be able to bring it back quickly at a low cost, but no reality of that. we need to get to some clarity on corporate taxes. if we do that, we will have a much stronger economy and we will have a contribution to economic growth. i don't think the way to do that at a time when corporate taxes are far lower than they ever were historically is to further reduce tax burdens. the right thing to do is to find a way of collecting taxes much more efficiently and keeping corporate tax revenues constant and removing the terrible disincentives to bring money home. that's an important thing to do and would make a contribution to the economy. >> you talked about that quite a
bit do you think that's a reality over the real tax reform that eliminates double taxation? >> i think it will be hard this year before the mid-term election, but i'm hopeful that after the mid-term election people will come together particularly in the corporate area where there really is low hanging fruit in removing uncertainty, bringing down burdens on investments. at the same time you can pay for it because there a variety of abusive provisions that can be corrected that will raise revenue. i am hopeful and wouldn't go to being optimistic. more important in some ways, i'm confident that that is something that and you should be able to
recognize and strpthen our economy. >> let me ask you about the u.s. and how would you compare that to what's happening in markets and japan. you have stimulus all over the world and the european central bank providing stimulus and possibly more next week. we are expecting the ecb to make moves on thursday. you have the prime minister of japan having implemented stimulus and that has been a big story in 2013 over the markets rolled over in 2014. what's your take on the u.s. version for the rest of the world? >> i'm fearful that it would be the story. the economy would be improved and can't be satisfied with where we are and we are at a much stronger place than europe or japan.
i worry that it's under estimated in the global economy. they have gotten inflation up a bit and generated economic growth, but that was a reflection of an exchange rate to a large extent. they can't have a big rate of depreciation every year. this week something important will happen. japan will implement a major value added tax increase. the last time the economy went from cautious recovery into recession. i'm nervous about what that will mean and much of abe nomices is not happening. they are not expanding and i worry for what that means and given that, that could be a
critical. >> in europe, there is a continuing danger of deflation. scarce stories of a while ago, that the euro area would break up. those look much less likely now. europe has a long way to go to establish durable and continuing growth. we are growing and we will probably grow at a rate that will be sufficient to bring it this year. we are still nowhere near where we might have expected to be this point. for every policy maker in the united states, every area of policy, the priority now should be on raising the level of demand. it is the lack of demand that is
this fundamental reason that businesses are not investing and the lack of income that comes from increased employment that comes from why consumers are not spending more. whether it's freeing up housing finance or reversing a terrible decline in public investment spending, we have seen the priorities that have to be whether it's taking advantage of the energy resources. they find it rational to be exporting gas and oil. those are crucial issues. >> i agree so much on energy. stay with us. we will talk more about markets. let's see what you got. rv -- covered. why would you pay for a hotel? i never do. motorcycles -- check. atv. i ride those. do you? no.
. >> >> we are back with larry sommers as we look ahead to the opening bell on wall street tomorrow morning. you mentioned a handful of catalysts that are important for the economy and the market. on one hand this new tax going to be implemented in japan as well as new stimulus in europe. in terms of japan, do you think the markets are expecting disruption around this new tax being implemented next week? already we have seen a negative performance in the japanese market. a lot of people say that has been an outperformance in 2013. >> i'm not going to try to predict what market psychology is. as a general proposition, i think the place in the world where risks are probably most underestimated right now is in
japan. it dhoob thcould be that this w off smoothly. given the magnitude of the problems, japan is walking on a narrow ledge. that is a source of uncertainty for the global economy. >> interesting stuff. let me get your take on another topic that will be the talk of town. that's the new michael lewis book, flash boys about high frequency trading. they are doing a 60 minutes on it tonight. i want to run one sound byte for you on 60 minutes and get your reaction to it. listen to michael lewis on this interview coming tonight. >> it is rigged.
>> wie whom. >> by a combination of the stock exchanges. >> who are the victims? >> everybody who has an investment in the stock market. >> i have to assume that you do not believe that the u.s. market is rigged. i do not believe that. what about that perception? >> i think it's a staggering exaggeration to say that the market is rigged. that said, high frequency trading has been a concern of mine for a long-term. it's what they call a sum game. if someone trades a nano second ahead, somebody else has to lose. if it's people who are building the dedicated fiber optic cables of those who are winning, the rest of us as ordinary investors who are losing out.
important reforms in the area have been overdue for a long time. the right thing to do is instead of allowing training to be continuous to have an auction every one second for each stock. it's hard to believe that does damage to liquidity and it would shut down a great deal of this fundamentally unproductive activity. it's a proper area for concern and i hope that it will receive more attention going forward. i don't think your viewers out there should not try to outwit the locals by trading in and out every hour. that's not going to work. if people want to make long-term
investments in companies they believe in, that's a sound thing to do and it worked out well for those who have done it. >> absolutely. we are talking about the so-called algo rhythms or electronic programs put into the system enabling some of these high frequency traders to get a nano second more or faster than the average guy. should there be a market for retail and for institutional investors? how do they get their arms around this when people like michael lewis said that the stock market is rigged? if i wanted to sell stock, i would want anybody to buy it. i don't think they feel like you
are doing me a favor. it's a complicated and intricate subject. i made a suggestion that the frequency of actual trading not be literally continuous, but every second or two seconds and it turns out at least some believe that that would make the more problematic activity more difficult without doing real damage to the functioning of the market. that may not be the right way, but it's an intricate kind of subject. >> we appreciate your insight. see you soon. joining us today. >> reducing the cost of health care. how do you do it is the question we put to the world's largest pharmaceutical company.
we look ahead on sunday morning futures. bl ♪ nothing's missed with tena twist... ♪ because tena gave you a new outlook, we've given tena a whole new look. ♪ nothing's missed with tena twist... ♪ ♪ don't miss a beat... ♪ nothing's missed with tena twist... ♪ presenting the fresh, new face of fearless protection. ♪ nothing's missed with tena twist... ♪
>> from america's news headquarters, here are the other stories we are covering at this hour. the sad death toll is rising to 18 victims from last weekend's devastating and horrific mudslide. the number of missing has been revised downward from 90 people and now 30 are still unaccounted for. officials say finding and identifying all of the victims could stretch out for a longer period of time. so far still no sign of malaysia airlines flight 370. they comb a vast new section in the search for the missing boeing 777. the new target is about 700 miles northeast of the original
area. they are reporting three objects were recovered from the seas and saying they are not part of the missing plane. this while dozens of relatives demand the malaysian government apologize for the suddenlying of the search. they went nuts after the launch in tucson. at least 15 people were arrested after the university public team's overtime defeat in the march madness tournament. they had to shoot pepper spray at several hundred students orphans that took to the streets throwing beer bottles and firecrackers at the officers. arizona lot of 64 to 63 to wisconsin in the west region final last night. the doctors will be in in a brand-new time. from now on, you can catch house call in less than two hours from now. 9:30 a.m. pacific after we bring you the latest news at 12:00 noon. back to sunday morning futures
with maria. with being back. higher insurance premiums and higher doctor bills and higher drug prices. i sat down with ken frazier, the ceo of merck and asked him straight out, how do we cut the cost of health care? >> let he start by saying with respect to prices, merck has committed to responsible pricing. we want to charge a price that is appropriate, but take into consideration the value of medicine. let me give you an example. according to the alzheimers association, if we don't get a disease modifying agent, the year 2050 which is 35 years from now, it will cost american society $1 trillion.
trillion with a t. it's important for us to look at the overall health care cost and not just the drug budget. drugs are 10% of the extendtures in the united states. it's important that the congressional budget office came out and said for every $1 extra that you spend on pharmaceuticals, you will save $2 elsewhere in health care. when we think about the overall cost of new drugs, we have to remember that 80% of the drugs prescribed are generic. the question is what is the appropriate level of pricing that allows new drugs, breakthroughs like the antibody to get to people who need these drugs today and allows companies like merck to look for the drug we need tomorrow. >> this is the weekend, the deadline to sign up for the health care legislation, obamacare. one of the leaders in the industry, how does health care
look different post obamacare getting implemented? >> let me start by saying we are in favor of having people have access to quality affordable health care coverage. that's what obamacare was intended to do. we believe in the efficiency and quality of care. your question is, what's the actual out come. i think it's early to say what that out come is. we are very early on in the exchanges and that's where coverage will be provided and from our perspective, what's really important is this is sufficiently robust to give individuals access to the full range of medical care, pharmaceutical care they need to protect their health. it's just too early to say how it will roll out. we are going to be actively involved in having our voice heard about what we think are
the right kinds of coverage schemes to protect people's health and protect innovation going forward. >> have you seen an impact as we all anticipate this legislation taking hold? >> i think it's too early to see real substantial impact. at the end of the day, what matters for us, for example, is do the uninsured get covered? if they are, are they given meaningful access to quality care? i think it's too early to say what's going to happen. i'm optimistic because we are rational people, we americans. we experiment and when things don't work, we fix them. i know the president said from the beginning if things are not working, she wants to find a better way. the congress wants to find a better way and despite the political back and forth, the american people are going to demand that we find better ways
to provide efficient and effective health care. >> i wonder if the generic companies get impacted more in terms of business. as you can surmise, more people will be insured. more people will go to the doctor. doctors will write more prescriptions. they will write it for the generics rather than the brand. >> as i said earlier, 80% of prescriptions by volume are generic. that's a good thing. it provides people high quality medical care where it's appropriate and a reasonably low price. that creates some room for new drugs. i actually think of the generics as the branded pharmaceutical industry's contribution to american health. we invented the drugs. people think about them of being generic and other places. as i mentioned, our largest drug just went off patent, one of the
first statins. they have gone off patent. you need generics to have innovation. >> there is a move about whether the copays, merck and glaxo said they will hold off on affordable act copays. can you tell us about that? >> those stories have to do in essence of whether we provide coupons for pharmaceuticals for people who have copays who are struggling to pay. we want to help people whether it's the patient assistance program or the copay assistance. right now there is a lack of clarity around the law and whether or not those programs under the affordable care act are legal and appropriate. we are going to try to cocome to a conclusion. that's what that is about. getting the clarity we need. >> we're don't know if it's
legal or not. >> there is an open question about that and is studying that to make sure we come to the right out come. >> thank you. >> thank you for coming out and visiting us and i hope to see you soon. >> thank you so much. a brand-new report quoting several health industry executives. insurance rates could potentially double under obamacare. the panel will respond to that as we look ahead on sunday morning futures. frequent heartburn? the choice is yours.
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. welcome back to the economy and your money. we will bring in our panel to talk about it. the architect behind the affordable care act. the foreign policy specialist is the president and founder of the group and ed rollins was the director for presidents reagan reelection and mike huckabee's presidential run in 2008. he is a fox news contributor. thank you so much for joining us. it's interesting that larry summers was the graduate adviser. give us the merits of obamacare.
you created the affordable care act and we are hearing so much about it from business as well as people from the extension on top of everything. >> i'm glad to be part of creating it. what i can say is it's just too early and it builds on what we accomplished in massachusetts. it's a rare opportunity to tie with the program like this. we did it in massachusetts. the same dates of structure has been successful. we have a 3% uninsurance rate and we fixed the market. it happens over about a three-year period. it's too early to evaluate. the news so far is good. we are signing up millions of people. 5, 6, 7 million people. what matters is that many get the security they need. >> how do you fix that premiums are costing more than we thought? >> we will have the answer.
>> the cleveland clinic at the top of the show. >> premiums went up on average 10% a year before this law passed. it's a premium set out in exchange that were 15% below what they would be. starting out to a point where they are priced below where they thought they would be in a market where they go up 10% a year. this is a reasonable out come. >> 10% is reasonable? >> a big problem in the united states we spend so much more on health care than any other developed country and you look at what we get to it and our life expectancey and obesity rates, we are clearly not getting the benefits we would expect for that cash. we should have universal health care and people should have plans they find affordable. we are bringing other people on.
those are good things. no one has addressed this big structural nash needs addressing. >> two things. this is not the bipartisan effort. you have a bipartisan effort for the major overhaul of anything. when you have a bill that is a revision, three, four, five, six. there is no effort to do that. the president is trying by avoiding the law. do what he thinks is right. the courts will step in. i think this law of the land for the foreseeable future will be nicking and picking at it and did nothing to reduce cost and people will be shocked when they get into hospitals and find deductibles and the doctor can't provide them the services they need. the expectations that you are going to be measured against will be high. they are not going measure up. >> this is the most bipartisan reform in the nation's history. when this was passed by a
republican governor, on the quoting list, the speaker was talking about what a victory this same law was. it's only when president obama signed it that it was only once president obama signed it that it became a partisan issue. >> listen, romney basically -- romney and the kennedy got the massachusetts bill passed. it had always been senator kennedy's efforts. >> no, that is -- that's a disservice to governor romney. governor romney was the leader and made it happen. >> first of all, this is going to be president obama and the democrats and that's what basically having a big impact in the midterm elections rights now. and i think he's finding a lot of people very unhappy with this. they may get coverage, but are they going to get health service. >> that's what we're going to talk about and i want to talk about the 2014 elections and how does this lead up to all of this. stay with us, gentlemen. how does this affect the upcoming midterms? our panel tackles that.
we'll take a look around the world. there are elections in turkey. lots going on in japan. we want to look at that stunning prediction larry gave us about the japan economy. (knocking) hello? hey, i notice your car is not in the driveway. yeah. it's in the shop. it's going to cost me an arm and a leg. that's hilarious. sorry. you shoulda taken it to midas. get some of that midas touch. they tell you what stuff needs fixing, and what stuff can wait. next time i'm going to midas. high-five! arg! i did not see that coming. trust the midas touch. for brakes, tires, oil, everything. (whistling) making sure you pay the right price for a new car just got a whole lot easier. introducing the kelley blue book price advisor. the powerful tool that shows you what should pay. it gives you a fair purchase price that's based on what others recently for the same car
we're back with jonathan gruber, ian bromer and edward rollins. let's go around the world. ukraine, are you expecting putin to go further into ukraine? then i want to talk turkey who has elections today. >> i think it's great that we have negotiations restarting today with secretary kerry and foreign minister lavrov. clearly, they come from very different perspectives. the russians are not going to talk about crimea. that is an absolute done deal from the american perspective they need to roll back. but negotiations are better than not. you have two folks running for the ukrainian presidency and we have to see if the russians are
willing to give either of them the time of day. they're both sfushtly corrupt, but they could end up in russia's pocket. that's what would stop the russians from going into east ukraine. otherwise they're going to try and subvert this process. >> turkey has banned youtube and twitter. do these stories have any impact on america? >> sure. we invest there. turkey used to be one of the most exciting markets in the world. today, the prime minister has undermined institutions that were becoming more legitimate. now they're not. rule of law is eroding. the independent judiciary is eroding. we have elections today. if he does well, he's going to take that further. it's becoming an authoritarian state. >> ed rolllands, how many seats do you think the gop picks up? >> well, i think they win. they very well, because of obamacare, are going to be in a position where they possibly win a majority. i'm not ready to predict that yet. but the game will change dramatically. whoever wins is going to have a
one or two-seed margin. the moment this election is over, we start 2/do '16. >> the law of orlando for -- >> obamacare is not going to be altered in the foreseeable future. we're going to live with it. what no one understands is what it's going to truly cost, individuals, businesses and the taxpayers. the one great program the federal government had, medicare and medicaid, are both going to be badly impacted by this. >> hard to defend that. >> no, it's not, because it's wrong. in medicare what you're doing is you're saying tone sure that we're paying excessive profi're excessive profits. those are the cuts to medicare. medicaid what we're saying is for the first time in other nation's history, our poor citizens, in the states profitable enough to do it is going to provide them with -- >> nothing is free. >> republicans can do the that, democrats can do that. challenge the special interests of on -- >> we've got to jump.
my headline for the day, larry summers amazing assessment of japan -- >> on buzz beater this sunday, chris christie is exonerated in the bridge scandal, at least according to a law firm hired by his office. and journalists, of course, are skeptical. >> does it makes you feel clueless? does it make you feel like, what was wrong with me? >> not clueless, but it certainly makes me feel taken advantage of. >> so there's not going to be any e-mails, no phone records, no tape recordings that come out that establish you knew about this? >> no, because i didn't. >> but what if the findings are confirmed? it seemed like the missing plane drama was