Administration giving people 6 more weeks with us to talk about latest development. Dr. Gottlieb. And business law attorney seth. Dr. Scott, i start with you, this is an amazing story that president promises we can keep our Health Insurance coverage knowing that likelihood is 47 to 60 would close their coverage each year, millions of americans without coverage, he promised us the opposite. What do you make of this . This is an irs bulle but bottom line is that i think they were anticipating the people would lose their coverage, and move into the exchanges. These are most lo lucrative, i suspect they would move on to plans they would like more, were finding right now options are worse than they should in costs and benefit design. Weve seen people say, they see increased costs but Administration Reporting that young people, individuals will see costs on their policies of just 50 a month, i have to tell you, i have not seen that in talking with anybody on our show. What do you think of the back and forth, a give and take between the white house and media on the topics . I think that it demonstrates that administration is not only not in control of what is going on, but they dont know the information, or they are really just holding some back. The bottom line is, that the structure of the Affordable Care act works if the young individuals, go in and provide a major funding mechanism within the infrastructure of the Affordable Care act, if they are not going to do that, then it is not going to work. Have you that funding mechanism problem, and the waivers, and extensions that create a lot of confusion, not only does it continue to show there is a lot of delay but adds confusion on top of everything. I tell you, confusion. The other thing were hearing tonight, is that there will be a 6 week extension to sign up for coverage, scott we talked about this in 6 00 hour. You will be able to avid penalt avoid penalties, previously you had to sign up by mid february, but now administration said well delay it 6 weeks is that enough . Probably not to get the web site right and give people enough time to enroll. Im not sure how they are doing it, they are preenter prettying what is the law. They are say you have to have signed up for coverage by march 4. Most people probably will be grateful, no one will challenge it. But it is curious how they came about this. Senator john saying what about legislator can you make up this law on the fly i dont think so. Is delaying the law legal, are all of the changes, the tinkering at margins, date is march 31, march 1 . Is that legal, how much wiggle room does the administration have to rewrite the law they passed. There is a general legal principle that federal agency have authority to promulgate regulations that are reasonably related to in furtherance of the law, they can follow within that contour but they cannot change the law, for example a case in Washington Internal Revenue Service accused of creating a subsidy rule of that outside of the language of the law, the justice deputy, filed a motion to dismiss it the judge said, forget it, he is not granting that motion. And there are a number of these examples, where agencies are not acting within the confines of the Affordable Care act but they go outside of it, this is illegal, and exceeds their authority under federal law. But, who stops them . Well, you are right, it is epensive, and difficult to do that, there is a group of 7 plaintiff in Dc Federal Court in washington. You are right, it is hard, time consuming and expensive. People are doing that, in this case with ruling on february 15, it could drop, a big part of funding mechanism out of obamacare. One more email, sam,an president change the law without a congressional approval . There have you it again. Dr. Scott, people up set, they feel that the law is influx, and what congress signed off on their representatives voted for, whatever the administration wants to put into place is what they do your response . And businesses too, they need to figure out how to comply with the law, and insurers made a good faith estimate. So that is putting a strain on a lot of people, consumers and businesses that are forced to play in these markets now. Thank you so much for coming well see throughout the hour. We have more to come this hour, more questions from emails, and twitter and facebook, call in with your questions. We want to hear from you. Ask me what its like to get your best nights sleep every night. [announcer] why not talk to someone whos sleeping on the most highly recommended d in america . Ask me about my tempurpedic. Ask me how fast i fall asleep. Ask me about staying asleep. [announcer] tempurpedic owners are more satisfied than owners of any traditional mattress brand. Tempurpedic. The most highly recommended bed in america. Now sleep cooler with extra cooling comfort on our bestselling tempurbreeze beds. Visit tempurpedic. Com to learn more, and find a retailer near you. Gerri welcome to you both, well get right to the calls, mike from ohio calling with a question on obamacare, failing, what next . Mike . Yeah, im concerned, if obamacare does fail, how do we go back to a system that we had before or reset a whole another type of system. Gerri ed . I think well be able to come out of it. Okay. For most people. Some large employers, they will go their own way on this. So, something people may be all right for a while. Gerri i want to follow up on this, i think this is interesting question, what do we do if the law fails, i mean reality, it is the law of the land, it may be doing poorly, may not be answering our needs, but unless we repeal the whole thing, i mean. That is the thing, easiest thing to repeal start over with a clean sheet, tough is to fix it while half there. This is just a highrisk pool, for people outside of the exchanging, trouble is insurance costs now have gone up, we repriced cost of insurance in this country. To comply with the mandates and regulation that will be hard to undo, i think people are looking at higher insurance costs across the board. Are not working for a large. Er to provide coverage. Gerri back to the callers here, terry in texas with a question. Your question. Yes, participating Insurance Company, is there enough money in reserve to cover an influx of possible large claims, in january or is that part of obama funding . Gerri a great question, ed . No, insurers would base their remember that part of the insurance is regulate the by the states, states are concerned about it insurers would charge premiums they think are sufficient to cover what they are expectation to have happen that is reviewed by state regulators, that is why in a number of cases, you have seen insurers back out of the exchanges, for example aetna backed out in maryland and california, and new york, reason is they were, proposing premiums to cover what they thought would be the risk, but those were too high for the pro obamacare regulators, in those states, they didnt like them, and so they wanted aetna to lower them, aetna said no, were willing to try this, and maybe we get it wrong, and people dont buy or coverage but were not losing money, they are well covered, ones that are at greatest risk are new coop insurers, they are brand new, there is no market demand, they were created as part of a government program. Gerri okay, lets move on to, another question. This from liz from vermont. Came in as email, she is talking about huge mess weve seen with web site, big problem with operations, if we contract it with firm cgi is it their responsible to deliver a final product . Scott, talk this week well put czar in charge of this, well put a company in charge of fixing this. Should cgi make good . Right, they recontracted, keep in mine, cgi is not only contractor there are a lot, they singled out cgi, imnot too sure why. There were others with pivotal rolls, problem was not necessarily with the contractors, who were involved in pieces but problem of putting it together. Other problem they got started very late. I think they were pressed at the end because they started late. Gerri one more email in. Charlotte from iowa. How obamacare will affect seniors that receive Social Security now, my Social Security is not high, im afraid of it taking all my money to purchase obamacare. Ed . Well, she does not have to worry about having to buy anything, nothing changes in terms of that. The plans north about seniors plans are not about Senior Citizens that is medicare program, there will be some effects down the road but she does not have to worry about buying something. Gerri a ton of questions from people on medicare about how it impacts shortterm ulongterm, a lot of concerns, we have more of your obamacare questions, next we big don dont into our tax questions, call us 18772499626. We want to hear you from. Its as simple as this. At bny mellon, our business is investments. Managing them, moving them, making them work. We oversee 20 of the worlds financial assets. And that gives us scale and insight no one else has. Investment management combined with investment servicing. Bringing the power of investments to peoples lives. Invested in the world. Bny mellon. At od, whatever business youre in, thats the business were in with Premium Service like one of the best ontime delivery records and a low claims ratio, we do whatever it takes to make your business our business. Od. Helping the world keep promises. Gerri welcome back to our special user guide to obamacare, you still have time to send in your question, 18772499626. Back again with me to answer your tax related questions. Rich, thank you for coming back after dinner. I appreciate that. We have a caller here wayne in North Carolina. What is your question . Two questions, when there is a discussion about total income for individuals, as far as getting offset from government, is this ajumped gross income adjusted gross, my wifes premium is 304 for Standard Insurance policy, she 62, that amount next year is 778. We have income combined over for gross income for year 2013 over 100 thousand. Most of which is associated with my retirement pension and consulting, my wife has a smaller income. And second question is, can we file separate but married in that having with low income . Good question. The actual subsidy is based on married filing joint. If you are married you need to file jointly to get the credit or subsidy. In that case, you are starting with what they call modified ajusted gross income, line 37. With add backs, nontaxable Social Security, taxes, interest and foreign earned income that was exclused. The question for purposes of credit, you need to file jointly but for penalty, it is not clear perhaps, married filing separate might be a way to reduce penalty if your spouse has less income relative to you. Gerri it is not clear . We dont know. Yes, if you want credit you have to file joint. I have not seen it so clearly stated for purpose of penalty. Gerri all right. Thank you, wayne. We appreciate your question. Bob said, i would like to know what irs can do if i refuse to buy insurance, and refuse to pay the fine. A common question, the irs can only reduce your refund, they cannot take assets or criminally prosecute. Gerri can they make my property . They can reduce your refund, if you dont have a refund coming. Gerri dont have a refund, my friends, that is where were going. Email from fran. My husband has v. A. Medical insurance, i am on workers comp, not gainfully. Employed. Similar to question before. Similar. As i said, if it credit, you need to file joinly, if not the credit, i think there could be tax filing sep separate. You have to look at whether or not you lose other tax benefits from going from married filing join to married filing separate. Gerri this is why people hire, count anes like you. If you work hard of the year and lose your job . This is a good one, you are supposed to estimate what income you are expecting to have, you apply for 2014, you estimate your income, your part time work, and any other unemployment income, annualize that. Dont underestimate your income. They become back at you, you are going to true up at the time of your filing, you may owrec the we the government money different from a pen at see in than penalty. Gerri thank you, rich. Coming up next, obamacare question and answer session continues with a look the impact on medicare. I know you top hear about this, medicare and your privacy stray with us. Thats correct. Cause im really nervous about getting trapped. Whys that . Uh, mark . Go get help i have my reasons. Look, you dont have to feel trapped with our raise your rate cd. If our rate on this cd goes up, yours can too. Oh that sounds nice. Dont feel trapped with the ally raise your rate cd. Ally bank. Your money needs an ally. Help the gulf when we made recover and learn the gulf, bp from what happened 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. Ido more with less with buss energy. Hp is help. Soon, the worlds most intelligent servers, designed by hp, will give ups over twice the performance, using forty percent less energy. Multiply that across over a thousand locations, and theyll provide the same benefit to the environment as over 60,000 trees. Thats a trend we can all get behind. Gerri for weeks weve been collecting your questions and concerns on obamacare, tonight, for the second time our panel of experts have answers, you still have time to get your question in give us a call, 18772499626. We want to hear from you. Were answers questions live. Joining me now dr. Scott gottlieb. And ed hathelmeyer. And paul howard, senior fellow at manhattan institute, john in pennsylvania. Your question . I understanding is obamacare law allows subsidies for state exchanges but not federal. Only state. But they apply to both . Right, the law said, state exchanges but it is expected to float bustate and federal, that is being litigated right now in court, for the time, subsidies on both. Gerri federal exchange, state exchange, you get the subsidies, does not matter you still get them either way. For bob in ohio with a question i believe Medicare Part b. Caller im a va, covered vietnam vet, my question is, do i need to take out Medicare Part a or not . Gerri scott . You could continue to be covered through the v. A. System, if you if through medicare system you may face higher out of pocket costs officially. But have you more flexibility in terms of providers you can see. Gerri all right to terry in indiana. His question about future of obamacare. Yes, good evening. I have been hearing about this law for this time, now a question no one has asked. What happens to people who refuse to buy obamacare, and refuse to pay the fine do they get put in prison or fema camps. Gerri ed . No, that was handled in the last segment on a tax question. If you dont buy the insurance, and dont pay fine, all that irs can do is deduct the fine from your refund. If you are owed a refund, if you dont have a refund, they will clock up the interest on it, so when they did get a refund they will take it against that, but that is it. Gerri jim from virginia. I have a son in North Carolina with his own business, they are all healthy young people, they refuse to buy it. Now all people in the country, wello welfare, i know people deserve it, but there are a lot that dont on the system, that dont bridge anything t bridge g anything t to the table, they ae covered by obamacare, why is this not discrimination. If he has fewer than 50 employees he will not be penalized. Gerri i want to ask you a general question. Weve been talking about the problem with the web site, and how it has hindered people who want to go online, and what happens in law fails, if they cant enaalable the law how does this play out, the problems are substantial, now government saying well give you more time to sign up. I think that biggest story is that health plan have not got e into the market, white house is surprised by that, when the big insurers state out of the state exchanges, looking at the providers, theyre not signing contracts with the Obamacare Health plans, people are not signing up, they know this is a bad marke market to provide cove through, you see fewer people enter the exchanges than was anticipated making coverage more expensive, and for the rest of us who are stuck in individual market are stuck buying small Group Coverage our costs are going up too, there not a good refuge, this is a one time repricing of insurance, bother rather than just addressing a narrow issue of providing insurance to people who were unensured they had to mesa, mesa, round with everyones coverage. A lot of people who are enrolls in quote en quotic changes are going to into mitigate Program Exchanges they are going into a medicaid program. 6e6. Gerri and what about people who are footing the bill for this . I have to tell you, taxes associated with obamacare, are astonishing, at individual level and business level. Well, that is right, they are putting them on premium, top of the premium going up, part of the increase, they are taxing the premium on the theory that there is extra money there. So, yeah, were you know, this is a division buyinged on income. You based on invom, you are come, there will be a pool of people it looks like cost of medicaid and highrisk pool with a few insurers who offer a limited network of providers, and rest us will look for ways to evade the system yet we have to pay for it. They provide certain kinds of reinsurance to exchanges to offset the cost of coverage if it becomes too expensive. The money for that is from a tax on everyone elses coverage. Gerri scott, you have to go back tell us what you mean by reinsurance. Certain provision in law to help offset size in premium in exchanges, if that pool of people, ends up sick arer than e anticipated, premiums should go up but they are subsidizing them more than what they anticipated. Gerri hear is what i hear you say, it is going to cost you more. It is going to cost you more. Gerri well, we have to stop for right now, when we come back, these guys, scott, ed and paul will answer more questions, we have a lot. 18772499626. Dont go away. Ron im never alone with scottrade. I can always call or stop by my local office. Theyre nearby and ready to help. So