Revenue package. And finally, the fight for Economic Freedom gets even more intense overseas. Look at this statue of linen toppled. This fight is not going away. All those stories and much more coming up on the kudlow report beginning right now. Im larry kudlow. This is the kudlow report. First up tonight, a report that a majority of california doctors, as many as 70 , are staying off the states obama Care Exchange because they cant afford to participate. That simple. And obama care, listen to this, its offering medicaid reimbursement rates. Look, around the country a medicare pays 76 for a return patient visit. Thats medicare around the country. In california, these medicaid rates would mean 24 for a visit. Would you Practice Medicine with those kinds of numbers . Here now to discuss is democratic strategist chris kofin kofinis, mike slater out of san diego, california, where we all wish we would be. Mike slater, let me go to you first. The way california is doing this, theyre treating doctors like medicaid surfs. So therefore, no pay, no play. Thats simple enough for me. Is that the story . So glad you used that word. Doctors are treated like servants and not like traders of services. I come to you from inside the crystal ball and every doctor ive talked to in california says this is a disaster for patients and for them. Everyone was so focused on Health Insurance, no one ever asked doctors what they think is best. Which is so weird because theyre the once administering the health care. So we have this situation where maybe more people have Health Insurance than ever before but what good is Health Insurance if its nearly impossible to Access Health care. And chris kofinis, they kept sending the Health Care Authorities in california kept sending out letters to the doctors. And the doctors and their associations, their representatives, would send the letter back saying, what are the rates . And they wouldnt tell them the rates when finally we figured out what the reimbursement rates are. Then 70 , 75 of the doctors say, no way, ill retire, go into real estate, buy the padres, whatever. But theyre not doing medicine anymore. Chris, you cant get away with that stuff, paying 24 for a visit. Thats insanity. Remember that part of the objective here was to not only bend the cost curve but to bring costs down. I dont know what the eventual reimbursements will be. These are adjustments that are made to attract more doctors into the practice. But the reality is i was in california over the holidays. And i had conversation with family members who are doctors. I asked them pointblank. To them, they dont see obama care as the negative that others see it. I was actually surprised. I thought they would be more critical and they werent. They think its going to be a net positive. I guess thats going to be disputes amongst different doctors. But the goal is to bring costs down. Its hard for people to accept but this is clearly an important part of health care reform. Scott gottlieb, seems to me the goal may be to bring costs down. I dont think this is the right way to do it. But theyre bringing doctors down. Thats what theyre doing. Ill just ask you. Youre in the profession. How the hell do you have a doctor run a practice with a 24 visit . Right. 24 visit. I dont know enough about it none of my doctors charge 24. I wish they would. But then again i dont wish they would because if they did, they wouldnt be able to practice and i wouldnt have good doctors. This isnt just california but nationwise. Only certain providers have a cost structure in their office where they can turn a profit or even stay in business by providing services at those services and they tend to be medicaid providers. Theyre extending the medicaid program. These medicaid providers now are going to be treating a larger medicaid population at the same time were asking them to also treat the patients being put into obama care. Its not going to work. Theres going to be a relative shortage insofar as you have price controls. Youre going to get shortages. This whole darn thing, medicaid is the big winner, look at the enrollment and the recruitme recruitme recruitment. Medicaid is a big, giant step towards single payer, governmentrun health care, period, end of sentence. Let me move on to another important obama care headline today. This is courtesy of dr. Scott gottlieb. In the new york post, you write about making good on obamas keep your insurance promise by allowing americans to shop inside the federal employees own Health Business plan. Im a former federal bureaucrat. Scott, is this feasible . What are the advantages of the federal employees Health Care Plan . Its a true marketplace. You have all different kinds of plans being sold and people can actually choose the plan that they want and tailor what they want to receive. The amazing thing is that the plans are actually cheaper than the obama care plans even without the federal subsidies. If you take the list price of a plan in that system and try to compare it to a comparable obama care in the same market, youll see that there are cheaper options in the federal plan. My argument is this, people who lost their insurance, who were kicked off their insurance, rather than forcing them into obama care, let them shop in the federal program. Let them have access to a real marketplace. Chris, thousands of plans are in this federal employees Health Care Plan. Its whatever consumers want, the insurers are going to provide it. Its not just like four basic plan, one size fits all. This is competition. Why can federal workers have this and not the rest of the people around the country . The other 300 million of us . Well, inside to be i was a former federal employee and i was in that Health Care Plan. And its a very Good Health Care option. No question about that. I dont see that necessarily as negative to open it up. My perspective is, in terms of the issue of allowing individuals to keep their health care insurance, that stays in place for a year. There are obviously alternatives and people can see in the exchange if they can find better plans or not. But if the republicans or someone wants to propose this as an option, they should do it. Theres clearly going to be fixes it happens with every major piece of legislation. If this passes the feasibility test, lets do it. Scott, is there any way it is late in the game. Only a couple of weeks. Is there any way to open the door to that option of the federal employees Health Care Plan with its thousands of choices . Thats the part that i find so impressive. Choice, free choice for health care. Right. And not just choice but choice in the benefits. Obama care, if you try to buy up your benefit in obama care, if you go from the bronze plan to the platinum plan, youre not getting a Different Network in many cases and youre not getting a different drug formula. Youre just getting lower copays and lower deductibles. In the federal program, you have a real choice. That gives you lower cost options. To get to your question, could they do this now . It would be very hard. Its very late in the game. If they wanted to do Something Like this, they could get it in place in a couple of months but it wouldnt be ready for january 1st. Im afraid youre right. Mike slater, to you, in some sense the biggest headline today, the lead story in the wall street journal, one of the lead stories in the New York Times is sticker shock. This time, its sticker shock for outofpocket costs from deductibles, high deductible plans. Thats the sticker shock. People are focusing on the premiums. But actually theyre going to have to pay a lot more because the deductibles are going to be a lot more. And this thing has of course health care content. People are going to get damaged, lose their doctors, lose their great Hospital Services but also its politics. As this comes out and the sticker shot not just the premiums but the deductibility and what people are going to have to pay out of this is a huge factor, mike laslater. What are the geniuses now from the white house . Why havent they figured this one out . And youre looking at 30 copayments even after you meet the deductible as well. And one thing about covered california, our Health Exchange here, the website is still totally messed up. Theyre giving you premiums which are still inrat according to every Health Insurance adviser ive contact to. One thing, the purpose of obama care was to bridge the divide between the haves and the have nots with health care. But people in obama care, they cant go to the best hospitals. Theyre not going to be able to see as many doctors as they want. And theyre going to see rationed care and longer lines. But zeke emanuel admitted if youre willing to pay more, you can get broader options, you can maybe go abroad and have medicine around the world. The purpose was to bridge the gap. And obama care only makes it even wider. As you mentioned, larry, with the copays going up, its even worse were going to play that zeke emanuel tape in a few minutes. Chris kofinis, because i admire and respect you and i have so much affection for you, i want to give you a little piece of free political advice. Get this guy zeke emanuel off the air. Absolutely this guy hes been on this show. Either he lied or he was just ignorant. The guy is supposed to be a smart guy. Teaches school at the university of pennsylvania. Get him out of there because every time he shows up and makes the statements that he makes, this is like the Democratic Party dying of 1,000 cuts. Chris, can you write that in, get into that the political operation of the white house . Put zeke emanuel on retirement . Yeah, im going to probably have to deflect that question oh, i know. But let me address the comment that was made about here i think it really is an important point to keep in mind. Were talking about a Health Care Plan in terms of obama care, Affordable Care act, whatever you want to call it, thats going to provide Health Care Coverage for tens of millions of americans that did not have it previously. Youre talking about people who had preexisting conditions that were not able to get Health Care Coverage before lets not pretend like this notion of deductibles and copays and outofpocket expenses is somehow a new phenomenon. That had been the norm of our health care practice. I want to tell you this, its not the notion of deductibles or the notion of premiums. Its not the notion of doctors and hospitals. Its the fact, its the reality. Its the volume. Its the level. Thats whats missing. And you know why its missing . Because whatever government does with their rationing and their controls, they do it wrong. Weve learned this for thousands of years. And i cant give you a lecture tonight. Chris kofinis, you take this emanuel guy, put him in moth balls, buddy. Mike slater, great to see you. And dr. Scott gottlieb, as always, terrific stuff. Now, were getting close to a budget deal in washington without a government shutdown. But a very senior Republican House source tells me the budget cutting sequester levels dont have enough republican votes in the house. Thats why a deal is going to have to be made. Many more details for you on the budget deal next up. Speaking of washington, remember, the kudlow report is going to be live from the Nations Capital tomorrow night. Were going to talk to House Majority leader eric cantor about his vision for the gop and we also have a onceinalifetime event. Former fed chairman Alan Greenspan has agreed to a debate face to face with undersecretary of the treasury john taylor. The topic . Who is really responsible for the great bubble that eventually burst in 2008 . This is the first time mr. Greenspan and mr. Taylor have agreed to bring their longstanding difference of opinion to a real facetoface debate. It will be polite but it will be tough. If you have any suggestions for me, im the moderator, please tweet. Bubbleblame. Thats tomorrow night at our usual time, 7 00 p. M. And 4 00 p. M. Eastern. Please dont forget, free market capitalism is the best path to prosperity. Im rooting for those people in ukraine on the streets for their own freedom. Im kudlow. Americans take care of business. They always have. They always will. Thats why you take charge of your future. Your retirement. Ameriprise advisors can help you like theyve helped millions of others. Listening, planning, working one on one. To help you retire your way. With confidence. Thats what Ameriprise Financial does. Thats what they can do with you. Ameriprise financial. More within reach. Thats what they can do 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 purrrfect. vo meeeow, business pro. Meeeow. Go national. Go like a pro. Welcome back to the kudlow report. Im dominic chu with this news alert. The president of ukraine says he is willing to talk to protesters. After another heavy day of protests including the teardown and demolishing of a statue of vladimir lenin, the ukraines want closer ties to europe, more of a free market capitalism. Leading the movement is a champion boxer who many see as the possible next president , larry, of the ukraine. That is just terrific stuff, dominic chu, thank you very much. Really terrific stuff. Well keep a close eye on this whole revolution. Welcome back to the kudlow report. Youve seen a number of reports about the Budget Deal Congress is apparently close to making. I want to give you an update on what ive learned. I had a call from a very senior House Republican yesterday who laid out most of it for me. First off, the sequester itself, the budgetcutting sequester itself, will not continue in its kurntd form. My source says the republican votes were just not there for it, especially the defense hawks. Second, the democrats attempt to extend it to extend jobless benefits will fail. My source says the democrats threw that into the talks way to late to get that deal done. And unemployment is coming down anyway. Finally, there is apparently by almost all accounts absolutely no one on either side who wants another government shutdown. I think the markets and the public can feel pretty safe on that one. Although you can never be 100 sure. So after a series of downtothewire negotiations, could we see a budget deal this time around . Hint, hint, yes. But as i said, the sequester is dead, long live the sequester. Here now, Jared Bernstein and representative dave swikert. Dave r let me begin with you, is my information correct . There is going to be a deal. There is going to be a vote. There are not enough votes to get 218 in the house. The defense hawks and others will not permit the sequester to go through. Is that fair . Is that correct . Thats the information im hearing. Were all getting on the airplanes tonight and heading back to d. C. To start this actual discussion tomorrow morning. Hopefully by midday tomorrow, well know what the real facts are and actually where the votes are starting to lay. Jared, what i also gather is theyre going to move some spending accounts around. Not going to get into appropriations minutia. Thats all going to be shifted around. But it is interesting, once they get that done and once the defense appropriations goes up some, theyre looking at semiinteresting stuff here. Higher copays for federal pension system, maybe higher fees for the guarantees of that system, maybe fannie and freddie have to pay more. Aviation security is going to have a user fee slapped on it. Maybe the spectrum rights will be sold. Jared, you and i and dave have been around a while. Weve heard these things before. Is this stuff actually going to get done . These are fees that have entered the deal. There certainly is some, quote, revenue there and in some ways its squirrelly revenue because somebody has to pay that at the end of the day. But it is real and i think whats useful from an Economic Perspective is that theyre talking about buying down about 65 billion of the sequester for 2014 and 2015 and paying for it with those fees much more incremental. That helps reduce fiscal drag on the economy. My information is about the same as yours but with one important difference. The sequester doesnt end in 2015. The sequester is slated to keep going through, i think, 2021. Yes. While this would definitely change the sequester for a couple of years, it does at least in terms of current law come back. Once you break it, you own it. I was in the grand rudman days. Once you break it, you own it. Its interesting, dave, i accept the fact that the defense hawks didnt want the sequester, some budget movement has to occur. Whether these user fees go through or not remains to be seen. But its interesting because my friend Jared Bernstein and all his colleagues at the Congressional Budget Office told us how bad it would be if we actually used the sequester and had budget caps, how it would damage the economy, how it would kill 700,000 jobs. And whats interesting, it didnt kill 700,000 jobs. Actually jobs are rising. Actually i venture to say in true Milton Friedman free market art laffer economies, i think its the data and the predictions that were made two years ago have not come true. Where many of us are concerned is there is sort of an inflection and you look at the sequestration dollars in the 1415 budget cycle. Do you backtrack and say, well have the savings in the out years. Those out years never materialize. And once again the one mechanism weve had the last couple of years thats actually reduced federal spending start