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Obamacare Replacement Plan Unveiled; Mandates Replaced with Tax Credits; GOP Divided over Medicaid Changes. Aired 1-1:30p ET

Aired March 7, 2017 - 13:00   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


WOLF BLITZER, CNN ANCHOR: Hello, I'm Wolf Blitzer. It's 1:00 p.m. here in Washington. Wherever you're watching from around the world, thanks very much for joining us.

Up first, the president and his press secretary, they're back in the public spotlight today. The White House briefing is set to get underway this hour. You're looking at live pictures coming in from the White House briefing room.

The press secretary Sean Spicer will be taking reporters' questions in this first on camera briefing in more than a week. We're going to bring that to you live.

President Trump, meanwhile, he was out of the public eye for several days. But we saw him earlier today actually greeting guests on a tour of the White House. We'll see him at two other events later today. He leads a meeting of House members and then meets with AFL-CIO president, Richard Trumka.

President Trump's explosive and unsubstantiated wiretap claims and the Republican plan to replace Obamacare just two of the issues the press secretary Sean Spicer will no doubt be questioned about this hour.

Let's go to our Senior White House Correspondent Jim Acosta and our Senior Congressional Reporter Manu Raju. They're both up on Capitol Hill, actually. Jim Acosta is not on Capitol Hill. He is over at the White House.

Jim, Spicer was asked about President Trump's allegation that President Obama tapped his phones. He didn't provide any evidence at all, but said, quote, "There's no question that something happened."

What more are we hearing from the White House?

JIM ACOSTA, CNN SENIOR WHITE HOUSE CORRESPONDENT: As of this point, Wolf, nothing. We are hearing no new information, no new proof, no new evidence from this White House to back up the president's claim that he tweeted over the weekend, that somehow former President Obama orchestrated the tapping of his phones up at Trump Tower.

And so, at this point, it is still something that the president is claiming happened without any proof. And, at this point, the White House is not offering any additional proof.

Now, Mike Pence, the Vice President, was asked about this earlier this morning on a radio program. Here's a bit of that.

(BEGIN VIDEO CLIP)

MIKE PENCE, VICE PRESIDENT OF THE UNITED STATES: I think -- I think the president's tweet speaks for itself. He's expressed himself on it.

And, you know, we're very pleased that the Congressional committees have made it clear that they will look into that matter, just as they're looking into every aspect of it.

(END VIDEO CLIP)

ACOSTA: Now, of course, coming up in just about half hour from now is the first on camera White House briefing that we've had in a week, Wolf.

Yesterday, the White House press secretary Sean Spicer held a briefing. It was off camera. That goes along with some off-camera briefings that we had last week.

Although, we should point out, the press secretary did a round robin of on-camera interviews with reporters. So, he was taking many of the same questions that he would have taken in the briefing room.

But this is a part of that Washington theater, I guess you could say, Wolf, that we have not really had a chance to look at in some time. And it's going to be a chance for just about everybody in that room to press the White House press secretary for some kind of proof, some kind of evidence to back up what the president tweeted over the weekend.

But as we heard from the vice president in that radio interview earlier this morning, there is a lot of attention being paid to the Obamacare repeal and replace proposal that was put up on Capitol Hill. And so, I imagine that the White House press secretary will be spending a lot of time talking about that promoting that.

The president tweeted about it this morning, and the vice president also indicated that he is somewhat on board as well. Of course, all of these details still need to be worked out. The House health care plan has not, obviously, been rectified on the Senate side. And so, they have a long way to go.

BLITZER: They have a really long way to go. Manu, you spoke with Republican Senator John Cornyn of Texas, one of the Republican leaders in the Senate. He's also a member of the Intelligence Committee. What is he saying about the wiretap claims by the president?

MANU RAJU, CNN SENIOR CONGRESSIONAL REPORTER: Well, he doesn't know whether to believe the president of the United States. I asked him that directly. Do you believe the president of the United States? He said it's going to be part of the Senate Intelligence Committee's investigation which is a bit of news that's going further than what the Senate Intelligence Committee has said.

Here's a little bit of our exchange, Wolf.

(BEGIN VIDEOTAPE)

SEN. JOHN CORNYN (R), TEXAS: The bipartisan investigation is well underway and the CIA has produced a massive amount of classified materials for members of the Select Committee to review.

RAJU: And that was the purpose of your meeting there yesterday?

CORNYN: Well, I was there for other reasons but that was part of it, yes.

RAJU: And have you, as part of that, seen the Flynn transcripts with him and the Russian ambassador?

CORNYN: I haven't seen that.

RAJU: OK. Have you guys been briefed on that as a committee?

CORNYN: You know, he -- you know, Manu, I can't really talk about the things that are classified, and so I can't answer that question.

But what I can assure you is that Vice Chairman Warner, a Democrat, and Chairman Burr, a Republican, have committed to a bipartisan investigation which will be thorough and will follow the facts wherever they may lead.

[13:05:00] That's all I think anybody can reasonably ask for.

RAJU: Will you also look into the allegation of wiretapping -- the president being wiretapped by President Obama?

CORNYN: I think -- I think -- I think all of that is part of the investigation.

RAJU: Do you believe the president when he says that?

CORNYN: Well, like I said, it needs an investigation so we can find out what the facts are. So, we'll follow the facts wherever they may lead.

(END VIDEOTAPE)

RAJU: So interesting to hear a top Republican leader not able to say, Wolf, whether or not he believes the president of his own party by making such an eyebrow raising, stunning accusation against his predecessor for wiretapping.

But interesting also that the committee plans to look into this. That is something that the House Intelligence Committee also plans to look into. Devin Nunez, the Republican chairman of that committee, announcing over the weekend that he would look into the White House's allegation of Obama wiretapping the president of the United States.

But one thing that we do know, Wolf, is that the Senate Intelligence Committee now going through a lot of data, handed over by the CIA, looking into this issue.

But also interesting that John Cornyn has not seen those transcripts between Michael Flynn and the Russian ambassador that led to Michael Flynn's resignation from that post as national security advisor during that time, discussing possibly the issue of sanctions right as the president of the United States, Barack Obama at the time, was imposing those new sanctions.

All, though, part of that larger investigation, taking shape here on Capitol Hill -- Wolf.

BLITZER: Yes. Manu, I'm glad you caught up with Senator Cornyn, one of the Republican leaders. Less than a ringing endorsement of what we heard from the president over the weekend.

Manu Raju, Jim Acosta, guys, thanks very much. And, Jim, we'll stand by for that White House briefing. We'll have live coverage.

Also, happening right now, the Senate Judiciary Committee grilling the deputy attorney general nominee, Rod Rosenstein, Maryland's top federal prosecutor. Amy Klobuchar, the Senator from Minnesota, questioning the nominee right now.

President Trump nominated him to be Jeff Sessions' second in command over at the Justice Department. And with Sessions now recusing himself from any investigations involving Russia's interfering in the 2016 presidential election here in the United States. Rosenstein, is -- if confirmed, would now be in charge of that investigation.

But things got heated, for a moment, when Minnesota Senator Al Franken said Sessions needs to come back before the Judiciary Committee and explain himself. Listen to this exchange.

(BEGIN VIDEO CLIP)

SEN. AL FRANKEN (D), MINNESOTA: For me to make sure that you clearly understand this obligation, and you do understand this obligation, right?

ROD ROSENSTEIN, FEDERAL PROSECUTOR, MARYLAND: I believe I do, Senator.

FRANKEN: OK. I think Senator Sessions should come back. I think he owes it to this committee to come back and to explain himself because he also says in his letter which says --

UNIDENTIFIED MALE: (INAUDIBLE.)

FRANKEN: I will not -- this will be very short. He says, (INAUDIBLE) -- let's see. I did not mention communications I had with the Russian ambassador over the years because the question did not ask about them. I asked him what he would do as attorney general if it was true that members of the campaign had met with the Russians.

So, he says I did not mention communications I had with the Russian ambassador over the years because the question did not ask about them. He answered a question I didn't ask. And for him to put this in his letter as a response is insulting.

And I -- he should come back and explain himself, Mr. Chairman. I think he owes that to us. Because this appears to me like he was -- and I have been -- I've bent over backward not to say that he lied.

He needs to come back. I have bent over backward. I have given him the benefit of the doubt. But he has to come back.

(END VIDEO CLIP)

BLITZER: Strong words from Senator Al Franken of Minnesota.

Our Correspondent Jessica Schneider has been watching the hearing for us. Jessica, what more have you learned?

JESSICA SCHNEIDER, CNN CORRESPONDENT: Wolf, you can see the tempers starting to flare there. And what would normally be a routine hearing for the number two position at the Justice Department became fireworks in that relentless back and forth.

Russia and wiretapping at the forefront of that hearing. And, really, it was Attorney General Sessions, even though he wasn't there, he's been overshadowing the actual nominee, Rod Rosenstein, by that lingering anger among Democrats.

[13:10:03] Now, Rosenstein, the career prosecutor, facing relentless questioning about whether or not he'd appoint a special prosecutor.

Now that Sessions has recused himself from the investigation into Russia's meddling in the 2016 election, it would be Rosenstein that would be the one in charge. But the long-time prosecutor did dance around numerous questions on whether special counsel is necessary.

(BEGIN VIDEO CLIP)

SEN. DICK DURBIN (D), ILLINOIS: This is an historic constitutional moment in our history. So, I'd like to ask you, Mr. Rosenstein, will you commit that if you are confirmed, you will not impede or shut down any FBI or Justice Department investigation into Russian inference to influence the 2016 presidential election?

ROSENSTEIN: Senator, on the issue of foreign interference in American elections, I can assure you that you and I are on the same side. I will certainly support any properly predicated investigation related to interference by the Russians or by anybody else in American elections.

DURBIN: I might say for the record that Attorney General Sessions was asked that same question at his confirmation hearing, and he would not make that same commitment.

(END VIDEO CLIP)

SCHNEIDER: So, again, the attorney general front and center there. But, of course, Rosenstein will not commit to appointing a special prosecutor. He would only say that he commits to an independent investigation overall.

Now, also, Wolf, wiretapping was front and center. Rosenstein was asked about the president's tweets accusing the former president of wiretapping at Trump Tower. Rosenstein stayed away from that and only said it was the president's first amendment rights to tweet whatever he wants to -- Wolf.

BLITZER: All right, Jessica, thank you. Jessica Snyder reporting for us.

Coming up, the new Republican health care plan is facing some headwinds, including from inside the Republican Party. We'll ask the chief deputy Republican whip how he plans to get his members all on the same page as the bill makes its way through the House. There he is. Patrick McHenry of North Carolina. He's standing by live.

Also, take a look at this live pictures from the White House briefing room where the press secretary, Sean Spicer, getting ready to give his first on-camera briefing in more than a week. We'll go there live once it begins.

[13:12:21]

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[13:16:25] WOLF BLITZER, CNN ANCHOR: Only moments away from the start of the White House press briefing. The press secretary, Sean Spicer, getting ready. He'll make a statement and answers reporters' questions. He's supposed to be out there fairly soon. We'll, of course, have live coverage for you of that briefing. Lots of important issues on the agenda.

Including the new health care bill now heading to key House committees for review. We've got full coverage for you as this important legislation rolls out. I'm joined by CNN Money correspondent Cristina Alesci, and congressional correspondent Phil Mattingly. He's up on Capitol Hill.

Cristina, this new plan gets rid of what's called the individual mandate from Obamacare, which forces people - healthy young people especially - to go out and buy health insurance. Replaces it what's called with a refundable tax credit. How is that going to work?

CRISTINA ALESCI, CNN MONEY CORRESPONDENT: So the refundable tax credit essentially functions as a subsidy, but experts are worried that lower income Americans won't receive as generous of benefits as they did under Obamacare. So, for example, take the average 27-year-old earning $20,000 a year. Under Obamacare, that person got a $3,000 subsidy. Under the Republican's new plan, he's getting $2,000. So that's a concern.

That said, some middle income Americans may see an increase in benefits. And to your point, another distinction between Obamacare and this plan is that the Republicans took away the individual mandate. But - and there's a big but here - they have incentivized people to keep their health insurance plans because if you cancel your plan and you go restart it, there's a 30 percent surcharge that the insurance company can charge you. So there is an incentive here. If it's not an individual mandate, there's a financial incentive to actually keep your health coverage.

BLITZER: The proposed legislation also restructures Medicaid. And millions and millions of Americans got health insurance through Medicaid - health benefits through Medicaid thanks to the Affordable Care Act or Obamacare.

ALESCI: That's right, 11 million people got Medicaid under Obamacare. The concern here is that the Republicans want to take away federal funding for Medicaid. They want to get rid of those enhanced subsidies for that program. And as a result, the state will have to make up for the shortfall. The problem is that most states don't have the money to coverage that, Wolf. So there is, again, concern here that Medicaid participants will not get the kind of coverage they're getting under Obamacare.

BLITZER: Phil, the White House worked, as you know, very closely with members of the House, the Republican leadership, to craft this bill, but that doesn't necessarily mean it's going to be an easy ride. A lot of conservative Republicans, they are making public statements right now. They're not happy with this proposed plan. Most prominently some members of what's called the House Freedom Caucus. What are their main concerns?

PHIL MATTINGLY, CNN CONGRESSIONAL CORRESPONDENT: Well, the policies that Cristina just laid out, specifically the refundable tax credits, they say that creates a new entitlement program. They would have preferred deductions instead of credits when it came to tax policy. I think the big question right now is, Wolf, are these just concerns that they feel like they need to air at the beginning of the process, or are these the types of concerns that can sink the bill altogether?

Look, there's not a lot of space for Speaker Paul Ryan to move here. He needs 215 votes in the House in order to move this forward, get it over to the Senate. That means he can afford to lose 22 Republicans based on their current majority. We've already got a handful who have come out and said if this bill that was introduced last night is the bill that will move forward, they will oppose it. The big question now is, can they limit those defections?

You also have to worry about moderates as well on that Medicaid piece that Cristina was talking about. But I do think one of the interesting elements here that we still haven't seen kind of the full blown blitz yet is from the Trump administration. Health and Human Services Secretary Tom Price this morning sending a letter up to Capitol Hill saying the administration explicitly endorses what was proposed last night. But that's not going to be enough. When I talked to House Republican aides, they say the expectation is President Trump, Vice President Pence, Secretary Price will all be needed, not just to publicly sell this plan, but to work behind the scenes, try and mollify those conservatives who are threatening to go in the opposite direction.

[13:20:28] The big question now is, if one of those individuals gets a phone call from President Trump saying, look, I need you, you have to get behind this bill, can they still vote no? The House Republican leadership says they believe that push will help, will help get them over the finish line. But until that actually happens and until those phone calls are made, no question about it, they see a lot of problems going forward and no real clear pathway yet to get this through the House, Wolf.

BLITZER: Phil Mattingly up on The Hill. Cristiana Alesci here in the studio with me. Guys, thanks very much.

I want to bring in Congressman Patrick McHenry. He's a Republican from North Carolina. He's the chief deputy whip. He's also scheduled, by the way, to meet with President Trump in less than two hours from now.

Congressman, thanks very much for joining us.

REP. PATRICK MCHENRY (R), NORTH CAROLINA: Hey, Wolf, thanks for having me on.

BLITZER: I know you're incredibly busy today. Good to have you.

There's been some serious opposition already expressed - forget about the Democrats - by a bunch of your Republican colleagues in the House and the Senate. Utah Senator Mike Lee, for example, he released a statement just a little while ago saying, in part, let me read it to you, "this is not the Obamacare repeal bill we've been waiting for. It is a missed opportunity and a step in the wrong direction." He continued, "we promised the American people we would drain the swamp and end business as usual in Washington. This bill does not do that." What do you say to that criticism?

MCHENRY: Well, he shouldn't be criticizing the bill that the president, the vice president, the secretary of Health and Human Services support and have explicitly endorsed. What we've been doing in the House is different than what they've been doing in the Senate, among Republicans, certainly that's the case. We've been at - writing this proposal for the last year. We brought in every Republican in the House of Representatives. We've had 150 Republicans come through with briefings, policy discussions, substantive debate behind closed doors over the last two months, and we've crafted a very good piece of legislation that really works with the three corners of Republicans right now, the House, the Senate, and the presidency. And I think we've got a piece of legislation that can pass the House, pass the Senate and be signed by the president, and repeal an entitlement program for the first time in our nation's history.

BLITZER: But you know, congressman, you've got a whole bunch of Republicans, conservative Republicans, including some members of the House Freedom Caucus, expressing deep concerns. This is just a new entitlement program. You're the chief deputy whip. How are you working to get those Republicans on board because you're probably not going to have any Democrats supporting this legislation in the House or the Senate?

MCHENRY: Well, look, we have refundable tax credits to enable those that are on the margins to buy more affordable health insurance. Certainly that's dramatically different than what is Obamacare. And those that are benefitting from that, the established corporate interests that are benefitting from Obamacare as it now stands, certainly are not quite as warm to our proposal because it doesn't benefit their corporate interests as much.

We certainly have Republicans that say they don't like the nature of the tax credits. And almost every one of those Republicans criticizing this plan have, in the past, or are currently co-sponsors of legislation that use tax credits to increase the affordability of health insurance. They need to look at their own policy portfolio before criticizing what is in the piece of - this piece of legislation that we've been working on.

BLITZER: As you - as you know, congressman, there are moderate Republicans who aren't very happy with some of the proposed changes in the plan that would cut Medicaid expansion, for example, that happened under Obamacare.

MCHENRY: Right.

BLITZER: If that program is cut, as we just heard from Cristina Alesci, it could potentially leave millions of people relying on that Medicaid coverage without any coverage. What do you say to those fellow Republicans, including a bunch of Republican governors right now, who are especially concerned about that?

MCHENRY: Again, look, Ronald Reagan proposed this in the early 1970s with block grant Medicaid to the states. It was in our House Republican budget in 1995, passed by the House and Senate in 1995. This has been long-held Republican orthodoxy that we return Medicaid back to the states and allow flexibility and that innovation that occurs state by state in order to better deliver for those that are indigent and on the margins. Certainly those that are benefitting from nearly double digit yearly increases in Medicaid spending don't want to change that system and reduce that increase.

[13:25:07] But, Wolf, there is no cut to Medicaid. Medicaid will spend more next year and the following year and for the next decade, two decades. What we're talking about is trying to control the increase and give states full control over this population. One of the complaints out of our plan is that we are generous to those that are disabled and the most sickly in the Medicaid population. I think there's just a natural discussion we have to have about our social safety net and making sure we deliver for those that are truly in the most need -

BLITZER: Congressman -

MCHENRY: And our plan does that in the house.

BLITZER: A very quick question. I know we're running out of time. The whole discussion, you have the votes - presumably you have the votes in the House and the Senate to repeal Obamacare. You need 218 in the House. That's the majority. You have that presumably unless a whole bunch of Republicans bolt. You're not going to get many if - you're not going to get any Democratic support, I don't believe. MCHENRY: That's right. That's right.

BLITZER: In the Senate you need a simple majority to repeal. You need 51 votes. You have a 52-48 majority in the Senate. But as you well know, in the Senate, given their complicated rules - filibuster rules, to replace the existing law, you need 60 votes, 52 Republicans. You don't have the Democrats. Is this whole conversation really going to end up moot?

MCHENRY: No, and this - this is the reason why we've done repeal and replace in this package. That was the need out of our House Republican members that said, we have to do as much replace as possible because we don't know if the Democrats are willing to filibuster.

BLITZER: But you can't completely replace it in this - in this - in this legislation -

MCHENRY: You're right.

BLITZER: You can't completely replace it. You need subsequent legislation that will require 60 votes -

MCHENRY: Yes.

BLITZER: In the United States Senate. And I take - I take it you haven't worked with any Democrats in crafting this legislation that might make it more appealing to them.

MCHENRY: Well, no, this one we can do on our own. That next package will have to be a bipartisan majority for these fundamental insurance marketplace reforms that are going to make health insurance much more portable, more competitive. This is the opening discussion on repealing Obamacare. If we'll recall how Obamacare is put in place, they had a 60 vote package. When they had 60 votes in the Democrat- controlled Senate, 60 Democrats in the Senate, and then they used this reconciliation package to make changes to it. Likewise, to fully undo the damage of Obamacare, we're going to need both packages.

This is an opening act, Wolf. This is the first opening - major opening in this Republican Congress, with this Republican president, and more will be - will have to be done. And certainly it's going to be an interesting, exciting year. But as you've asked about the question of votes here in the House and the Senate, we have the votes for this package. We'll pass this package almost as it has been introduced with some minor changes. And I think we'll have this on the president's desk in the next month or - three or four weeks. And I think that will show results for us.

BLITZER: Yes.

MCHENRY: But we are Republicans here. So we're not going to do this in a simple fashion, and it won't be without drama. That's the nature of the Republican Party with various interests as they are arrayed and independent-minded people that we have to bring together for some level of consensus. That's my job.

BLITZER: Yes. All right, we'll be -

MCHENRY: That's the work that we do here on The Hill. And that's why it's going to be exciting.

BLITZER: Yes, it's going to be very exciting. Congressman Patrick McHenry. And as you know in the Senate, you've got 52 Republicans, but a few of them are already saying they don't like the cuts to Planned Parenthood. They may vote against it. If three Republicans bolt, you could -potentially the repeal part could be in deep trouble as well. So when you say it's going to be dramatic and exciting, I agree with you, it certainly will be. And Congressman Patrick McHenry of North Carolina, thanks for joining us.

MCHENRY: Thanks, Wolf.

BLITZER: Coming up, the secretary of Homeland Security, John Kelly, says that apart from the six countries listed in the president's new and revised travel ban, there are more than a dozen other nations with questionable vetting procedures. The former deputy secretary of state, Tony Blinken, is standing by. He'll join us to discuss.

Also, once again, take a look at some live pictures coming in from the White House Briefing Room. Expecting to hear more about the travel ban, wiretapping, all sorts of issues. The press secretary, Sean Spicer, getting ready to answer reporters' questions. We'll have live coverage.

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