tv The Willis Report FOX Business May 23, 2013 6:00pm-7:01pm EDT
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>> i was waiting for them. there it is. all right. that's always happy tonight. here comes "the willis report." gerri: hello, everyone, tonight on "the willis report." americans now spend more on health care than groceries. we have the details of a new report. also, your medical privacy. tonight, the dangers of going digital. >> metal records can be bought for 14 to $25 each. >> and the best of your 401k. how do you do that? we are looking out for you tonight on "the willis report." ♪ ♪ ♪
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gerri: our top story tonight is family spending more on health care and food. that is the conclusion of a stunning new report also says employers are pushing more of their cost on to workers. there is some good news as well. doctor scott gottlieb at the center for medicaid and medicare services. and paul howard, director of the center from medical progress at the manhattan institute. welcome to you both. i want to show some numbers here from this study that was just released. $22,000. this is for people who have the employee contribution, the out-of-pocket contribution, and the employer contribution. more than the cost of going to a public college for a year. an out-of-control enact. >> it is out of control in terms of the burden it places on families. the rate of increase has actually slowed largely because of the slow economy, which only compounds the impact on
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families. because people just aren't earning money with overall gdp. that is not much of early trade the other reason is that the cost of health care is being shifted to consumers. which is ultimately a good thing. it's going to make consumers smarter shoppers of health care. and it has lowered the cost of health care. >> i have to tell you that i am not a make a man as you are. but i would rather not have to bear the burden of the cost. overview, let's take a look these numbers. we have the grocery bill for a regular family, family of four. $8300. your total employee health care costs for a single year. $9100. so you're paying more for your health care costs, and you see a grocery bill. what is going on here? >> you are paying for it that, the typical american is not paying for health care year in and year out. three quarters of all americans average under $4000 per year. that is close to or over $24,000
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that come out of families pockets to pay for health care. the system is expensive. scott is right, we have to turn more power over to the consumer. gerri: the reality is you can save money if you shop around. doctor cott, let's look at the out-of-pocket cost that we were just talking about. employee out-of-pocket costs are $3600. coopare this to what he's he spent on gas. $2900. i mean, people and their wages -- the wages are growing. when you put in these kinds of costs for health care, is coming out of things he can't afford not to pay. you have to pay for gas. you have to pay for food. what is going on with the family budget? >> unfortunately this is only going to get worse. under the new health care plan, there is going to be heavy coinsurance around those plans, meaning that after people go out of their network of providers, or try to go outside the
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prescribed things, they are going to get hit with very heavy coinsurance now come out of their own pocket. gerri: we have so many promises with obamacare. we are going to have all of these people covered, we are going to keep costs under control. costs under control, not so muuh. >> costs are going up. also obamacare is an expansion that will put more people in the system, we are going to the more health care. more demand will drive prices up. you also have to push to have consolidation. tremendous pricing power as they consolidate further. prices will rise. the. gerri: we are taking a look at the hospitals, doctors, doctor scott, is this the way it should be? this arrangement as it should be? or is there something wrong with this picture. >> a lot of the ways are on the provider side. particularly in the hospital. very hard to get control of that when you have a government run with them.
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politically, those exercise a lot of congressional districts. so it's very hard for the government to do anything to try to affect those costs very that's why you want a more competitive marketplace by >> i don't understand why a tonsillectomy cost one -- one mark and twice that in another. eliminating on that? >> when there is no price transparencyy the highest cost is paid by the person is paying out of pocket. that is just ridiculous. it is because the person was utilizing the service, whether it employs him a patient, the consumer, they are not doing anything like the true cost, they have no attempt to discipline it. is it really worth it to me. gerri: what were you going to say, scott? >> shop around and look for institution. people can't even get what the best to just go for these procedures.
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>> taking a look at the fox news poll, people are increasingly saying that i don't obamacare. let's look at the new health care lot. you and your family will be worse off, 53% with obamacare. is this what you hear when you talk to friends and family? >> think the vast majority of people don't understand. thousands of pages long, incredibly complex. but they do understand the cost are going to go up. more complex, with more bureaucratized from washington's and have more control of your health care. at the end of the day, things will be more confusing and expensive. gerri: washington having control of everything is always frightening. >> i agree with paul. i talked to doctors and they say the same things. they are looking out for more paperwork and things get implemented. >> we can keep uncle sam out of it. it ight be the best way to go.
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thank you for coming on tonight. it is great to see you guys. now, let's see what you think. here's our question tonight. would you spend more on health care or groceries? la mancha gerriwillis.com, both on the right-hand side of the dream. i will share the results at the end of the show. another health care story, one that could cut down on your health care story. the universal flu vaccine. it is in the early stages of development. universal flu vaccine will eliminate the need to order a flu shot. with more on this, we have the doctor with us. it is possible? >> it really is. this could usher in a whole new generation of flu vaccines. as you were saying earlier on your segment, cost it an issue. the flu virus cost billions of dollars a year. gerri: 250,000 from 500,000 people die each year.
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the elderly, the young. is it possible that you get to a point where you have to worry about it? >> that would be so wonderful. so many people can get to the doctor. either they ddn't have health insurance. or we have had major problems in the last couple of years with this infusion of the vaccine. which means that my office, i have been waiting with bated breath for the shipment to arrive and many times it does not. so i wouldn't have to worry about this every year. so it could last for 10 years and would work against every subsequent problem that we have. gerri: let's talk about how this is put together. and sometimes it doesn't come quickly enough. sometimes the thing mutates and becomes something else. can you tell us about that? >> this is a seasonal vaccine that is made. scientist are scrambling to get it together. they are isolating the virus. they are growing out of an egg yolk. they have to hold that all of
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the vaccine work. some of us are allergic to eggs. a good percentage of the population can't take a flu shot for that reason. so that doesn't make much sense. anyway, the way that works is every year, they have to make a new vaccine. what they are looking for is to target some of the proteins on the surface of the virus. the new vaccine looks for those protein that are common. so we'll go after any unusual protein. and everything and all of the proteins, all of these viruses in one category and the properties they share. gerri: last i can get one. i felt lousy. i would've done it in october, it i would've been fine. how soon can we get them from understanding that were not even testing in india. >> we have tested in mice, but we have not done in humans.
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i would rate it is going to be a good two or five years out. gerri: i am waiting with bated baited breath. that's a great idea for a flu shot. thank you so much, it's great to see you. coming up next, just getting started including good news for investors and soon-to-be retirees. yes, major security breaches compromising 150,000 low income americans. how private applications are posted online. it's as simple as this. at bny mellon, our business is investments.
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program providing discount internet and cell phone service. it is funded through the surcharge on your monthly phone bill. the attorney general is currently investing that breach and he joins us now. mr. attorney general, thank you for joining us. what the latest in your work here? >> really the company is a private company. which is one of the vendors for the sec manages this program. so we would have really now seen 26 states put together this investigation, indiana and two others are part of it. but we are just now in the midst of the investigation. gerri: you know, i'm kind of blown away by the information. food stamps, parole letters, you
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don't have a secret in the world if you have one of these obama phones, these hundred and 50,000 people impacted. how does this happen? how they have this information is wavering on? >> this is one of those things that when they created the database, they didn't secure it. it is one of the things we have been focused on in terms of insecurity of privacy. that we consumers are not at risk. the company makes over $270,000 a month just in indiana alone off of the obamacare. so they really needed to spend a lot more of that money, securing the information that they have collected. gerri: here we have a government program that is supposed to help people. but frankly, it helps them be the victims of identity theft. >> well, that is one of the concerns. you have the exposure to people
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who would be identity thieves. you also have them creating a fake identity. but when you have a list of this many people who are at or below the poverty level, they also have other government programs. the other risk is they would have false claims against other government programs. so the people that go out and collect this data -- they have been collecting it for years since early 2012. massive lists, they are eligible for a lot of other government programs. there is that risk as well. gerri: basically what you're saying is that the bad guy can come in and get even more taxpayer dollars using fraud, on top of the estate of his company made. is there any kind of -- are they going to be hit with fine? a fine? is anybody going to go to jail? >> i'm not position to say
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exactly what remedies could be in place. the first thing is that you are wired to secure the data. and i think the data breach, as massive as it is, it is something that is a real concern. the first concern is to protect the consumers that have had their information access to get to the bottom of how wide and how many other people have access the information. once we have protected that, we can worry about fines and other kind of things later. gerri: if you make a mistake that they come you should lose your contract. >> it is not one that the attorney general exercises, but the federal communications commission, they manage managed that, i will leave it for their discretion. >> what about your investigation? >> the civil investigative demands, which are essentially like our subpoena, they will get the record. we are already getting funds in turn terms of how many people
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have accessed this access to this information. i will give a little bit of that credit for fox news because they were the ones doing an investigative report on the lifeline contract. they were the ones who exposed this announcement attention. gerri: we appreciate you coming on and up leading us on this story. it is just unbelievable. you know, you get stung twice. first we pay for the, then we pay for the fraud. thank you so much. you are on the right side of it, mr. attorney general. thank you for coming on the show. >> thank you for having me. gerri: that is unbelievable. next, a look at your medical privacy continues with keeping your data safe. also, how do you do that? tips on getting the most out of your 401k as bounces reach record highs.
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the. gerri: good news tonight for people saving for retirement, which should be everybody watching. equally great news for people close to their golden years. retirement account balance is, they are at record highs. hilary kramer, the president and ceo. great to see you. let's show some of these good numbers.
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it's exciting to be able to say there's something good going on in retirement plan. the average retirement is up 75% since 2009. the average account balance if you're over 55 years old is $255,000, of course, this is who fidelity is serving. these clients. this is good news, right? >> excellent news. every day, each individual investor who has a retirement account has gained financially. we really did come out of the 2008 and 2009 financial crisis and we came back. we have been stronger than ever and that all-time high. gerri: i know people out there. i have seen e-mails and i hear what you are saying. people are worried about a lot of things. they don't want to lose their money, they went through bad times. what should they do not. >> definitely sell anywhere from 10 to 30% of the equity in your fun.
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the reason is you have the flexibility and the beauty of these 401ks or you can move it into cash money market account. anyways for the market to come back down. be very careful to choose the funds that have really over extended beyond the average. the. gerri: anything that has over performed? >> exactly. maybe the return is 250%. gerri: that is crazy. >> those are the exact stocks that are going to come up hard. just like we saw this morning. it was a big momentum thing. he came up hard. then they bounced back, but it was also this. gerri: i want to bring up something else i think it's critically is critically important. a lot of people got out of the market. they got out of the market completely after the crash. those folks have only seen 25.9% gain. these people are paying a penalty for being shy on stocks.
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we say that? i say that he should be a lesson for the future, which is that if you do go into a retracement and you lose five to 155 on the market because it is just normal volatility that can take place in the cycle, don't be so afraid and sell everything at the bottom. we call it situation. the market waits for you to sell, then it starts going up. gerri: you know, for me, i invest all the time. because i can't make those calls. i don't know how to do that. i can't play momentum games. i just have to be invested all the time. you get the entire game. >> you're talking about about disciplined investing. that is the way that every investor should be. when i talk about scaling back and coming down on her portfolio, it is just simply part of the discipline. sitting there with these games. the bigger problem is that the bond market is a huge giant
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bubble. so you really look at the bond portfolio. gerri: let's talk for just a second about retirees. fidelity has been sitting by 50%, including 5%. 5% for employee match. that's pretty good, isn't? >> it's just not enough money. it is not enough because we are all going to live longer. >> putting the kids through school, gas and car. >> i know, but we are in society. it is so important to say. down the road, it is not just that your health matters, but you have to feel financially stable. so make sure that you have enough set aside. many of the retirement target are set when life expectancy was in the 70s or early '80s. hopefully we should all expect and hope and work towards making it 200 years old.
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gerri: you can save a lot of money for that. and you so much for coming on, it's very good to see you. >> well, it's time for a look at stories you are clicking on fox business.com. an up-and-down day for it the dow jones and s&p 500. it had been down as much as 127-pointt thinking that the stimulus may be scaled back. housing data was anything but weak today. sales of new homes rose in april to the second highest level since the summer of 2008. and the price for a new home also hitting a record high. the record high of nearly $272,000. a group of u.s. retailers, including macy's and target are suing mastercard in beta. retailers are accusing mastercard of inflating things. and fox business and adam
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shapiro. sitting down with burning it off today. burning it off saying that he was glad that he didn't get his family involved. some of his former clients were complicit in his prime. four years into his 100 year sentence for 75-year-old said that he is healthy but lonely. those are some of the hot stories on fox business.com. coming up later, how the political pressure on the irs began way back in 2010. and that medical privacy we continues as we break down the risk to your medical information on the cloud. how to keep your data safe coming up next. we went out andsked people a simple question: how old is the oldest perso you've known? we gave people a sticker d d themhow us. we learned a lot of us have known someone who's lived well in their 90s. and at's a great thing. but evethough we're living longer,
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a moment. first, the trio of scandals rocking the white house have many in washington have been whether they will derail the president's second term agenda including immigration reform. lou dobbs boatlift jeff sessions, men leading the opposition for the sentencing senate to have a bill. here's what he had to lay about the legislation. >> what we need to know is that this would legalize over the next 10 years, dirty million people, about three times what we would normally legalize. it is going tt hammer working americans. this is far too many low skilled workers that are going to pull down wages of people unemployed, underemployed rig dangerous. it is going to add trillions to the long-term financial costs and it will not work. gerri: lou dobbs joins me now.
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lou: we are going to be talking about an administration that is mired in scandal and not succeeding to divert a look attention. we are going to be talking with the co-author of numerous anti-illegal immigration perspectives. we have kris kobach and what is the likely outcome of the scandals, even if the internal revenue service has these investigations. lois lerner reeser right hand, she was sworn in, the house oversight committee is going to default and waiver the fifth amendment right. it is going to be quite some week and set of hearings we are going to be witnessing. gerri: no kidding. i can't wait to your coverage less than 30 minutes away.
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lou: now i am excited you want it is good to see you. well, it is all sunshine and roses at the hs hs department. secretary sebelius hoped that the obamacare bush would push obamacare. records are being put on the cloud. she says that these systems help improve patient health and save money on at the same time. it's all about efficiency. continuing our in-depth investigation into the dangers posed to your medical data. sir, you are an expert on medical information and security. what is the dark side of putting all of this personal data in the cloud? >> okay, there's a lot of opinions about this. lots of businesses are putting
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customer data online to improve service and costs. there is a lot of risk to putting the sensitive data online and systems that are not adequately secured. the department of health and human services said in the last years that 21 million people have had electronic medical records stolen. gerri: that is unbelievable. 97% of health care company report data breaches. on the website -- i want to show it right here. a wall of shame. the names of companies and companies you know. blue shield, united, saint jude, companies that have, by mistake, the information is gone. it has been made public. and the ultimate cost, that is what i'm worried about.
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with my information gets out there and i'm looking for a job. maybe i failed that pre-cancer screening. what next? and then there are the people who steal the data. how dangerous is this? >> lots of different reasons why a criminal would want to deal this data. one is health insurance fraud. people can sell your data and others can use it tt get free health care. maybe they get free prescription drugs. then there is financial identity theft. social security numbers, really that kind of information is very valuable to people who want to commit financial fraud. so it can mess up your health care record with people using your identity to get services. it can mess up your credit as well. gerri: let's talk about those in-depth for just a second. messing up your health care record can be catastrophic.
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what do you go to the emergency room and some has messed with your record. you get the wrong blood transfusion or blood type. this could kill you ultimately. people aren't thinking through the ultimate cost of these problems, i do not think. >> that is so true. someone is getting procedures done under your name and you are in an emergency situation. your records are going to be wrong. they might think you have had your appendix out when you have them. that is honestly a big problem. one thing is children's identity information. normally children are doing financial transactions. but with health care, we have rich data about children, there was one study done thing that up to 10% of children have had their identity information stolen. >> i didn't even know that.
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>> another area that has prompted concern tonight is medical devices. defibrillators. fetal monitors. all these things are connected to the web. they are also vulnerable and can be misused in some way. i hear that people are worried about entire hospital systems being compromised. >> yes, the medical device problem is particularly scary because you have these devices that work as standalone and now they are adding wireless functionalities to them so you can use your iphone, ipod, laptop computer, or over the internet to monitor these devices, connect to them, and a lot of them were not designed with security in mind. and all of a sudden we are connecting them were attackers can get at them. another issue is it is hard to fix them and update them because it is such a long certification
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process. once a a vulnerability is found, takes long time to fix it. it is like not like a regular i.t. system that you can patch a few hours. it's very difficult to get these things fixed. gerri: it seems to me there is not enough exxertise out there. even to make these things a variaat what do you tell people? members of your family come and say, what can i do to keep my private information private. when you say? are one of the things you can do is ask your insurance company, your health insurance company for a copy of your medical records and the activities on your account. you can see if everything checks out, if you have actually gone and had this. looking to make sure that all of the account, credit cards, all things that you know.
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gerri: thank you, chris for coming on. really enjoyed your conversation. >> thank you. gerri: bringing you breaking news. procter & gamble has a new president and ceo. bob mcdonnell is retiring from the company next month after serving since 2009. bill ackman has been pressuring him to leave. procter & gamble shares are up a half precent in after-hours trading. against the traitors like everyone we come back, helping you pick the best off your summer vacation and bring her back. congressman dear liza is saying that lowe's motor can no longer refuse or use the fifth amendment to protect yourself invessigation with liz macdonald coming up next.
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rowl] we used to live th a bear. we'd always have to go everywhere with it. get in the front. werive. it was so embarrasing that we just wanted to say, well, go away.hoo bear. but can't really tell bears what to do. moooooommmmmm!!! then one day, it was just gone. nnouncer] you are how u sleep. tempur-pedic.
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gerri: the irs scandal continues today with new information about democrats pressuring the agency in the middle of an election year. we are talking about big names, senate democrats. liz macdonald is here with the latest. >> 2010 was the year that the democrats went full bore, pressuring the irs to investigate nonprofit politicking, which resulted in the irs targeting tea party and other nonprofit applicants who are ideological opponents of democrats. they pressured the irs to investigate nonprofit politicking. even threatening legislation to change the irs standard if the irs did not act. the letters to the commissioners
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show from september of 2010 and it was from 10 democrats, including max baucus, carl levin and all schumer. thing that they want to investigate everything under the tax code or anything that was improperly engaged in political activities. this happened in march 2012. we have seven senators complaining to the irs commissioners in a letter sent on march of 2012. lack of clarity is to blame. threatening legislation. the seven democrats signed off. saying they urge the irs to take steps immediately of the tax code by political groups. the press and carl levin complained in the july 2012 letter to the irs is behaving
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passively about nonprofit political activities. senator levin added how long after a complaint to the irs does a compliance review began. and what approximate time does it take to review the complaint of the irs. he also asked the irs group to look through a dozen groups. sixty plus association. nobody irs officials did say that the irs routinely receives examination referrals from a variety of sources, including the public, the media, members of congress amah or their families. sending a ride back to you. gerri: fox news confirming just moments ago that lois lerner had officially been placed on administrative leave. but with pay. she says an announcement will be on who will be acting in her place. still to come, my two sons born.
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and looking to get away? not sure where to go? a list of summer vacation that you may begin to. bny meon combis investment management & investment servicing, ving us unique insights which help us attracthe industry's brightest minds who create powerful rategies for a country's investments which are used to build new schools to build more bright minds. insted in the world. bny mellon.
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places on the west coast are los angeles and seattle area to want to brave spontaneous combustion, phoenix, las vegas are also in that category as well. gerri: i have to say that my husband and i even considered going back there because we were there this spring. 102 degrees. you cannot play golf than 102 degrees. >> in the central united states, it's actually in the south. san antonio, austin, it can be a little bit warm, you want to be careful. new orleans is also included in there. it could be hot and humid, so just be careful. but they are growing in popularity. they are the two destinations are cheapest right now. >> looking at the east coast. boston is a great town. >> boston is doing great. as you go down the coast, you
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have atlanta as well as fort lauderdale and miami. washington dc and new york as well. depending on where you want to go, boston, atlanta, fort lauderdale and miami. getting deeper into summer, people get hurricane jitters and the prices drop hermetically. gerri: how about finding the cheapest flights? >> a couple of things you have to do. the comparison between comparison-shopping. also take into account the round-trip baggage fee except for jetblue and southwest. you also want to shop on the cheapest days to shop. tuesday through thursday is the perfect window. about two thirds of the time, that is when sales occur. the cheapest eight to fly is actually tuesday and wednesday and saturday. if you can organize your trip, at least half of it on the state, you will save money. gerri: one of my favorite things we talk about is what to expect
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when you pay to fly. round-trip flights. what should i be paying for a 1.5 hour ticket? 290 minutes like you shouldn't be paying anything over 200. typically closer to 175. if you are paying more than that, you are paying too much. gerri: what about two to four hours? >> to 75 is what you should shoot for. try not to pay more than 300. gerri: those opposed, cross-country. how much of a paper new york and san francisco? >> if you pick the right dates you if you can get in under $400 round-trip. just be aware of the coast-to-coast flights that can be extremely expensive at the last minute. poster to 900 or thousand dollars. don't wait on those particular flights. gerri: should you buy now and pay these exorbitant fares or wait till the last minute mxp
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make you pretty much need you. what is happening now internationally, especially over the transatlantic, $460 is the average round-trrp fuel charge. 164 the taxes and fees. you are over $600 before they start to charge for airfare. then they get the ticket over $1100 for round-trip. gerri: rick, thank you so much. coming up next, do you spend more on health care worker frees?. [ male announcer ] i've seen incredib things.
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hi. [ baby fussing ] ♪ all stations come over to mithis is for real this time. step seven point two one two. rify and lock. command is locked. five seconds. three, two, one. standing by for capture. the most innovative software on the plet... dragon is captured. is connecting today's leading companies to places beyond it. siemens. answers. gerri: health care costs have now surpassed the cost of groceries according to a 2013 medical index. health costs for a family of four has jumped nearly six and half% to more than 20,000 per year, so which to you spend mor
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on? here is a your posting. who can afford to go to the doctor? we had to pay almost a thousand dollars for tests when all my husband had was a sign is infection. that's insane. the estimate is. i find it interesting we're willing to pay more for health care than groceries commit the groceries we spend money on are often poor jock. that is a good point. we also asked on gerriwillis.com . 48 percent said health care and 52 percent said groceries. be sure to log on to gerriwillis.com from our online question every weekday. here are some of your e-mails. i am so mad, i will need medica care. if congress is exempt, that i am . if staff can trade on insider information, i wanted. he did they think they are? of that. and charles from virginia says, let's stop all subsidies, solid companies, at the mall plants, farmers, let the subsidies go
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down. give us more freedom to do what we want. well but. we love hearing from you. send me an e-mail. finally tonight, forget the classroom. the kids into the gym. the institute of medicine is recommending schools provide at least an hour of the selective the state. it also wants physical educatio to be a coor's object. that could be because nearly half of schools are cutting recess and jim time to better meet federal education standards . you are totally tying the hands of schools here. does gym class really make up for parents putting their kids in front of the tv set? it's the job of mom and dad. that's my "2 cents more". coming up tomorrow, i talked to scott morrison, founder and designer of the three by one. seeing what is in fashion for
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customized jeans. that's it for tonight on "the willis report". thank you for joining yes. don't forget to record the show if you cannot get this live. have a great night, and we will see you here tomorrow. ♪ lou: good evening, everybody. thank you for being with us. president obama desperate for reprieve after two weeks a mont -- of a number of domestic scandals. the president trying to change the subject by delivering a white house speech on foreign policy and drone at tax. president obama could not escap the scandals that have been scared his administration and agenda. he was forced to respond to charges that his administration is blatantly attacking the firs amendment rights of our free press. >> we must enforce consequences for those who break the law and
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