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Former Molina CEO calls Senate health-care bill 'heartless'

Investors are oblivious to the long-term detriments of the "heartless" Senate health-care bill, according to Mario Molina, former CEO of health-care company Molina.

"When people really understand what this bill is going to do, the American people are going to be really disappointed," said Molina in an interview Thursday on "Closing Bell." "Medicaid has been gutted, the premiums are going to go up, and the amount that people are going to have to contribute out of pocket for exchange policies is going to go up."

The Senate bill, released Thursday, proposes to roll back Medicaid expansion in an attempt to replace Obamacare. According to Molina, the new bill will "destabilize the individual market, take health care away from millions of low-income patients and give tax breaks to corporations and the wealth."

Health-care stocks rose Thursday, but Molina said the market is unaware of the future costs of the bill, which, he says, will override profits in several years.

"This is a penny-wise but pound-foolish bill that's going to cost us much more further on than what we're saying now," Molina said. "The markets are focused on short-term profits. If you look at what's going to happen 5 to 10 years down the road, this is going to cost much more. So we're going to have some short-term savings, but in the end, the taxpayer is going to pay much more."

Ultimately, Molina said the bill "could hardly seem like a good deal for most Americans," marginalizing the millions who depend on Medicaid for health protection.

"President Trump said the House bill was 'mean.' I would characterize this bill as heartless," Molina said. "This should not be the 'better-care' bill; this should be the 'we-don't-care bill.'"