Tonight on the willis report. Health care and the Government Shutdown. Big questions remain. Gerri live from washington dc, here is gerri willis. Gerri welcome to washington, the federal government is watching a trillion dollar entitlement Spending Program called obamacare. They are doing it in the middle of a new budget crisis and the shutdown of the federal government our goal is to help you navigate obamacare and how will affect you and your loved ones. Lots of questions even though obamacare is going full steam ahead. Everything is going to be okay. And how much money will they get . When we know what the deductibles are . The ultimate question is will this whole thing work or will it break the bank with more, Douglas Holtz eakin and a former cbo director and jon barrasso. Welcome to you both. Starting with the glitches, a map of the states that have glitches. There is almost no state that on this map. What happened . They were not ready and its hard to believe that after 2. 5 years, they will not ready. They were not ready to determine eligibility and turn on the switch and have it function properly. He sought the Washington Post report that 34 state had problems. We ran into trouble everywhere and started writing this down. It doesnt work. Gerri people were getting messages, some of the systems crashed. All kinds of problems. Will this be the new face of obamacare . I dont think these are glitches. This is a systematic failure of the exchanges today that people are seeing. What information to people all across the country is buyers beware. So many components to this. The president says it will be cheaper than your cell phone bill, which is an average of 71 per month. Thats absolutely false. The president said it will be as easy as buying on amazon. Com. I bet theres not a single american today that had that experience. If you like your doctor, he said, you can keep your doctor. Some exchanges go to places that you are not able to keep your doctor. Gerri a Million People visiting this website today. Thats pretty darn good. Is it going to be a million visitors to this site everyday . I dont think so, that would be 30 million visitors every month. Thats not 30 Million People buying Health Insurance. This was a lot of people that were curious, a lot of reporters showing up. A lot of interns. But it was to be expected, and i think the biggest criticism of the administration is how can we not planned for success. This is her Signature Program and you cant build a website he wants another president saying that this will have a positive impact on the deficit. Listen to this. This law needs more competition, lower costs for millions of americans. And this doesnt just mean Economic Security for our families, but that we are addressing the biggest drivers of our longterm deficits. It means a stronger economy. The president saying that senator barrasso, that obamacare is going to have a positive impact on the deficit. My question is how will that be possibly true . This is bad for people not just for health care but their jobs and paychecks, we are seeing peoples hours have been cut back, parttime workers have been cut back, businesses are not hiring, they are keeping it below 50 employees so they dont have to provide insurance for those individuals. It will be much more costly when he says cheaper than a cell phone bill. I think he is wrong and open to fraud. Gerri when it comes to this, he compared it to apple today. Heres the president comparing the rollout of obamacare to the glitches fixed by apple. Consider that just a couple of weeks ago apple rolled out a new mobile operating system. And within days they found a glitch. So they fixed it. I dont remember anybody suggesting that apple should stop selling iphone or ipod. Or threatening to shut down the company if they didnt. That is not how we do things in america. [laughter] gerri comparing it to apple. Apple is the most valuable brand on the planet. Please. Youre not forced to sign up for apple user. Thats the big difference as well. Its a completely unfair comparison. And again coming have to do this. It is going to cost the taxpayer a lot of money and it will hurt you, the consumer, and it will hurt you for trying to find a job to find a race. We have a list of this, companies are cutting back on the number of employees that we have, and ours, one of my other big concerns is the idea of subsidies. The concerns about how much money spent and does this make us vulnerable to fraud out there. Fraud as well as Identity Theft. The law is written in a way to make sure that anyone applying for a subsidy come you actually have to confirm and verify your income to see if you qualify for a subsidy. The president said, no, we are going to use the honor system. The way that this is set up, by underestimating this a little bit, you could get huge subsidies, which is not the way that this is set up. Even with people that are supporting the law says that there is significant potential for fraud and abuse. Which i think is back to a reporter that you think may very well have been getting the wrong amount of money. We dont know. There is no way to tell. Or their criminals out there right now and to break the system and get money from the federal government . Yes, people who are after your own identity and the socalled navigators can help you sign up, individuals that dont have to go to criminal background checks and they dont meet the same criteria. They have to meet us in terms of security. Real opportunity for Identity Theft because youre going to have to give people bank account numbers, credit card numbers, all of these sorts of things to try to sign up. Washington saw this in minnesota where they were to distributing this. Who knows how many repetitions we will see before it seems proper. Just when you send information into the data hub. It goes to social security, homeland security, health and Human Services, a number of different places. Individual people have all this information about you. People that you dont necessarily want to have this information. Gerri a a lot of people arent signing up because they dont like sharing this data. Senator, starting with you, great the effort. 2. 5 years to prepare a trillion dollars in spending. This is not just a rocky road. It is not just a glitch. Its a systematic failure. Gerri so dialing back expectations is an important part now, i have to tell you that we work here when the Supreme Court was debating it. We were here. Not to long ago, the more i see, the less i like. There is nothing here that should be surprise to anyone. There is nothing should make you feel good about it. Gerri thank you both for being here. Thank you so much. Thank you. Gerri that we want to know what you think. His our question of the night. Log onto gerriwillis. Com and vote on the righthand side of the screen. I will show share the results of the end of the show. We have more to come this hour, including the waste on Government Shutdown. And they focus on the Health Care Exchanges as they open for business and a look at what you can do when we return live from washington dc. Um. Wheres mrs. Davis . She took an early spring break thanks to her double miles from the capital one venture card. Now what was mrs. Davis teaching . Spelling. Thats not a subject, right . I mean, spell check. Thats a program. Algebra. Okay. Persons a and b are flying to the bahamas. How fast will they get there . Dont you need distance, rate and. No, all it takes is double miles. [ all ] whoa. Yeah. [ male announcer ] get away ft with unlimited double miles from the capital one venture card. Youre the worlds best teacher. This is so unexpected. Whats in your wallet . We have recommended from the beginning due to the need to be able to talk to a skilled advisor to help you navigate and sort through your plan options, because thats really important, weight and then youll have a better experience. Gerri we are back with their users guide to obamacare live from us. The head of the Health Care Analysis at u. S. Report. We are talking about the realworld impact they are told that this is a great thing and it wont cost very much, but if you look at the close ties in washington dc and colorado come easy pretty hefty deductibles. 10,000. This is a lot of money. It all depends on where you live. I have numbers from apple here that i want to share. The average deductible is 2550, compared that if you have employer sponsored coverage, 1100. As you said, the deductibles range up to 5000. You are making a study of this, trying to understand what is going on. What do you make of these deductibles and how do they compare with private sector plans . There is no question that people who choose the cheapest of the plans of Obamacare Exchanges are going to face higher costs. It. So they are going to see something more than they might have expected that then it might have come as a surprise. The initial cost, do maybe like to hear that, even that differs depending on where you are. Yes, some could be paying more than a thousand dollars from the application of tax credits. Its all over the place. Yes, the thing is that if the young and healthy, if they do not enroll, they could subsidize this. If you look at the actual premiums, versus what they could have gotten this year, this includes 160 that includes these deductibles. So you are paying more than 2. 5 times as much and a big deductible. And you dont always know what youre going to get for this money. You only have a couple of hospitals or doctors you can go to so this is what im getting. Its like a little bit of a revolt. Gerri the young people, they say that we are supposed to go out and buy insurance. Is it going to happen and what are they going to see in the exchanges . One thing that people are going to see in many of the exchanges, i was on about a dozen different exchanges. There was an array of options. You know, take your time, and your viewers need to understand that they dont need to sign up and they have some time to really weigh their options. And that includes what deductions they will need. Gerri ive been telling people, dont even get on the website yet, wait six weeks. Because at the end of the day you need to prove that you have coverage by january 1, 2014. But you dont have to move right away. What are you telling people . I think there is no reason to move quickly. Many of the young vegetables have done the arithmetic and think that they will pay the penalty and im not worried about getting sick, not to worry about the insurance. And because you can plant later, they will wait. And i think that is a risk. It will be sensitive in one or two ways. Either everyone shows up and they cant afford it or the young healthful stay out and the elderly and then it gets expensive in that regard. It is going to be tough. Gerri the president said today in the rose garden that 85 of americans have coverage. Thats a lot of people. We are talking about people, some 15 that are being targeted. But what im curious about and what is really not clear right now is the subsidy. How you get do you get the subsidy, what are the subsidies, and who do you have to report to. The subsidies make this to the insurer and reduces your outofpocket cost for the monthly premium. 6 million of the 7 Million People sign up on this and they will get it as a subsidy. It is important to know that they will get help from the government. They shouldnt leave the money on the table whether you like it or not. Do they send me a check . They will actually send it to the insurer. Your price on the website where you buy the Insurance Plan will be reduced by the amount of the subsidy. Gerri brs is going to believe this thing. So how does this work . How i do that . At the beginning, as we discussed earlier, i make 40,000 and they have no particular way to verify that. He met honor system. Right. It goes down to the Insurance Company, the irs will somehow be able to check your income and make sure that you have the right subsidy. If you have too much, they want it back. But there there are limits on what they can get back. If you have too little, too late. But do it right next time you and we have a long way to go. Lots more confusion than answers today. We are just waiting our way through this. Thank you both for coming on. We rrally appreciate your time. Thank you so much. Gerri how confusing. Well, more of our users guide to obamacare, including what you can expect when you go to the doctor. Thats some of the other big headline in washington, day one of a Government Shutdown. How far apart are both sides and what exactly is going on . Rich edson brings us the latest after the break. It is draconian measures that have to be taken. Until the congress can get together and determine what the appropriation bills are for fiscal 14 and that is the way the government is. This disturbs me. It was a plan that they were going to go through it no matter what happens. We feel that was in between a political entity fighting and it is frustrating so we could be a better, safer energy company. I can tell you safety is at the heart of everything we do. Weve added cuttingedge technology, like a new deepwater well cap and a stateoftheart monitoring center, whe experts watch over all drilling activity twentyfourseven. And were sharing what weve learned, so we can all produce energy more safely. Our commitment has never been stronger. Dont have enough food to survive. We cant let this happen. There is something we can do about it. Please join Christina Aguilera and yum brands in the movement to fight world hunger by supporting the United Nations world fo programme. To donate go to hungertohope. Com or make a text donation right now. Your contribution will feed children and save lives. Together, we can stop the dying and start the living. And together, we can move people from hunger to hope. And together, we can move people maestro of project management. Baron of the buildout. You need a permit. To be this awesome. And you. Rent from national. Because only national lets you choose any car in the aisle. And go. You can even take a fullsize or above, and still pay the midsize price. aaron purrrft. vo meeeow, business pro. Meeeow. Go national. Go like a pro. Gerri the government shut down is on, and the fight is on the heating up. Rri gerri the blame game over the Government Shutdown intensifying today. Is there an end in sight . Rich edson joined me for the very latest. The American People are so tired of this. You know, it is tough to figure out where this goes if you talk to republicans but what the poll numbers look like what the reaction is. It is only day number one you dont really feel the cumulative effects of the shutdown if you look at the economic effect it could take weeks of the shutdown to really start feeling the effects. How well they buckle . It depends on how that plays out. Gerri how long could last . N now republicans are trying a strategy to fund the government and its and pieces but so far Senate Democrats are Holding Strong you can find the entire government or none of it and it depends on how well the strategy plays out. Gerri didnt they agree to Fund Military payroll . Everybody agrees on that. No exception. So talking about the end game you say this will last two weeks but at what point do we stt to feel it . In washington your garbage is not picked up. Now they found a way recently a will get my garbage picked up. [laughter] but if you need a passport application, things like that but eventually hundreds of thousands of workers out of the u. S. Economy not making money, 800,000 common millions of dollars of federal contracts perhaps billions of dollars could work its way into the broader u. S. Economy and it becomes in inconvenience. Gerri ceos start to react but with the republican strategy is based upon their own message of obamacare the rollout of the exchanges is very importantly has been highly critical but you cannot hear it for the noise. Not today because everything coming out of catol hill and on top of that the debt ceiling fight that is what theyre really concerned about with the dysfunction to push his way over, that is the real focus of wall street. Gerri tell us about that. It will be a huge debate. Body looking forward to . Republicans have already releas what they would likeo put in their bill a demand to raise the debt ceilg if they can get that through the house of representatives. There is only so much you n watch it they dont succeed or fund the government then we have to move to the debt ceiling because we only have 16 days. Gerri but is there any negotiation . Right now you see Government Spending there is no negotiation and the democrats hold firm. But that is the big question. Will the administration negotiates . They are saying publicly they will not but they will take a tough position in public then you hear there are talks going on and that worries people. Gerri great reporting. You have a long night. Thank you for being with us. Going back to our guide to obamare what to expect on the number two, and today number three. Will things be different . That i talk with another member of congress who was also a doctor. Stay with us. 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Gerri one of the biggest problems of the obamacare is the American People dont know e. Enough about it. Nearly threequarters of 75 million uninsured dont know when they can begin using the new exchanges. We have the ceo, thank you for coming back. We hav 74 percent of people unaware of what is going on with the start of obamacare. How was that possible . In the investment of communicating to the public was so under estimated that even though they try to put in place the navigators come it is next to impossible to have enough resources to educate the public about the marketplace that opened today and how to navigate it. Gerri the navigators will not go out to the committee to explain being sincerely even they had not had a chance to look at the plan for their stay and they dont have information. Of payments. A few months ago secretary sebelius came back to ask for more money to investigate invest for communication and then she was criticized to go to the private sector for people to donate. Said that strategy failed. Gerri talk about the faile of the exchanges themselves, computer glitches, what about things going on in the background is how the industry is changing itself and dramatically. Would get the Insurance Industry they are banking on as many people as possible to go to the marketplace today to sign up and younger people. The only way they will be able to recover from taking on these people with preexisting conditions is to make it up by volume. Gerri if you were selling Car Insurance on the web and people could decide that they didnhave to tell their driving record date would not get insurance. So i challenge anybody to present to the marketplace to go to a Car Insurance web site to see if you can buy a Car Insurance policy with a minimum amount of information. Is impossible. It is ludicrous we agree to find an entire industry of insurance to take out the whole aspect of your health care. The one thing that dismissing that is missing is your own health. Gerri they say that they make it up in volume with the mandate. They think they will but behind us but suppose somebody is successful to defraud the individual mandate by one year. The Insurance Companies will be lifted because they are banking on these people to hopefully signed up. Year battle between the medical Device Manufacturers in the Insurance Companies because of the burden they have and the providers. Told the shin to keep your doctor. What has the Insurance Company doesnt to compete in the marketplace . It is not everything for everyone all the time. They have narrowed the network. Gerri and cant keep your doctor or your plan. Thank you for coming. I am flabbergasted at the rollout. We are about to run out of money for the federal government but if this was anything we were focusing on people would be upset. We appreciate it. 15ercent of americans did not have Health Coverage and that is worse in some states those are the ones that are forced into the exchanges. That makes up the top five. Number five, georgia. Awarded 80 of the residents are without insurance. Number four, florida. When iodophor in the most over the age of 65. Number three alaska. One of the wealthy estates in the nation nearly 21 . Number two nevada the highest Unemployment Rate and the largest households as a result 22 percentre uninsured. The least insured is texas they will be likely forced on to the federal exchange. It seems sad coming up your reaction. And the truth how you could be affected even if you have insurance through your employer. Dont go way. An gerri welcome back to our users guide to obamacare we are answering all questions on the insurance exchanges opening today. Think you are not affected because you have coverage through your employer . Think again our next guest says said government red tape is so tight even the private coverage will not be private soon. We have the Senior Research fellow from Heritage Foundation policy studies. Is everything and going to start looking like obamacare . They decided to concentrate authority in the secretary of health and Human Services to standardize benefits for all plans drop the countries of the government will determine what type of benefits and coinsurance that is in the stages but they make determinations what employers must offer. So in order to be a qualified health plan estimates the standards governing Health Insurance set by the department of hhs. The big change in governance is historically the states regulated Health Insurance and we are seeing a transfer of Regulatory Authority to the states to washington concentrated in the secretary. Gerri she makes all the important decision. , a twoyear covered, how much we pay, and reimbursereimburse d. Eatrice is yes. The secretary of hhs has enormous authority. She put a requirement on employers today they must carry abortion inducing drugs under Preventive Care and that is why we have a big controversy and litigation in the courts right now under the fit amendment. Gerri in talk about the money. This will cost a lot. We are handing out subsidies like it is lemonade and nobody is checking the data points. One thing that is remarkable is they set up a new subsidy anybody making 100 and 400 percent of poverty. It is up to 94,000 they will get a subsidy. The cbo estimates you have a relatively modest decline of the number of people that are dumped out of private insurance but most independent analys feel there will be a massive disruption of employer based insurance because the employers will look at the penalties and recognize a lot of these people our eligible for subsidies and take the position why should i pay for insurance when i can dump them off after the exchange . Gerri that is a and intelligent economic decisions on what the government is doing is telling them to get out. My view is we will have massive disruption but the problem for us is the projections on the total Taxpayer Burden that could be much higher we could see explosive growth. The mackenzie company, they say at the end of the day looking at the mandates are the incentives with 30 year 50 will dump the coverage. Gerri date you for coming. An unbelievable story. Now Getting Started right now. Well be right back in the answer to the question of the day. What is the point of concern . The government shut howdy partner. Youre not linda. Im filling in for officer owens. She used double miles from her capital one venture card to take an early vacation. Buckle up. Lets go do cop stuff. [ siren chirps ] license and venture card, maam. Was i going too fast . Oh, youd be going twice as fast if you had double miles. [ male announcer ] get away fast with unlimited double miles from the capital one nture card. Freeze dont touch the face can i drive . Absolutely not. Whats in your wallet . Gerri president obama telling a federal workers he hopes washington completes the shutdown so what are the concerns for you as elected the exchanges . The shutdown or obamacare . Here is your posting. Gerri 25 percent said the shutdown in 75 percent said obamacare. Finally, ready or not obamacare started today in judging by your reaction youre not ready. I would say people do not understand. And a big most people understand it. Even they said they dont even know nancy pelosi there is no priority for people that have no medical coverage. We dont know what changes are coming so were not ready so will it get past . Minimum wage is 10 dash a Small Business owner that havenots want everything that i have. It puts a burden on the next generation. Obamacare . I have not heard much about it. What is it . [laughter] i have great Health Insurance so i am good to go you are not freelance . [laughter] of course, he doesnt know what about obamacare but talking to the politicians and people trying to sign up it is not ready either. Computer glitches common error messages people signing up all over the country in oregon in florida sites failed as information disappeared the president called them open for business but the actual performance was less than impressive to be sure. Those can be overcome and the law is here to stay for now. For that reason it is critical we keep our eye on the ball. It is unacceptable the industry and has kicked the ball for Due Diligence for people asking subsidies. A 12 month grace period is too long the supporters say how nice it would be to give everybody coverage or through picks up the tab but that entitlement is one too many. Coming up tomorrow the users guide continues. Think you for joining us. Have a great night. We will see you in the york tomorrow. Good evening every buddy everybody the government is shut down principally president obama. 800,000 employees but they will most likely be paid retroactively but the essential services are provided restoring Veterans Benefits to open National Parks and monuments to allow the District Of Columbia to operate normally in funding bills that obama has strangely just in to veto. The impasse over the oneyear delay of