they are going to talk to each other. i talked to them individually. he could not make a commitment until they have talked each other, which hopefully they have done by now. yes. >> republicans and journalists specifically over section -- [indiscernible] citizens whorican have a connection with terrorism. was there any thought at all given on that provision -- [indiscernible] >> let me go back over and tell you what we have in the bill will be an improvement over what we have already passed in the house and in the senate committee, and it was an overwhelming vote. will be ok. i think we have addressed people's concerns. thank you very much trade we need to go get the bill passed. thank you. in a few moments, i financial stability oversight council discussion on cyber security and

financial markets. and in 45 minutes, a look at the world medicaid and the affordable care act. >> i got upset with the president because they covered my mental health work the first few meetings i had, and then they never showed up anymore. one day i was walking on the down floor in the white house and met this woman who was one of the press people. never cover my meetings. carter, mental illness is not a sexy issue. but we toured the country, found out what was needed, developed legislation, and past the mental health systems act of 1980. monthsed the congress one

was, as he said, was involuntarily retired from thewhite house, and incoming president never implemented it. one of the greatest disappointments of my life. >> first lady rosalynn carter, tonight and not 5:00 p.m.. >> now a financial stability oversight council discussion on cyber security and financial markets. the council, created by the dodd-frank law, includes jack and and thernanke, heads of the fdic and the consumer financial protection euro. this is 45 minutes. >> [indiscernible] i apologize.

i did not realize the microphone was on. openld like to call this meeting of the financial stability oversight consul to order, and before we go to our regular order of is this, i would like to take note that this is the last meeting for two of our members, chairman bernanke and german g -- chairman gansler. chairman bernanke he will be at the january meeting, but this is actually chairman gansler's last meeting as chairman of the council. i would like to thank them for their dedication and service. i would like to thank chairman bernanke for the leadership of the fed during a period of time when his leadership made an enormous leadership difference. in the aftermath of the financial crisis, his boldness was critical to of hurting a great depression. with respect to the council's

immeasurablemade cut emissions in so many areas. i would like to thank chairman gensler for everything he has done to promote our financial markets. --y has been step fights steadfast in his pursuit and the ongoing transformation of our drifters markets operate, and it is a testament to him that we have made the progress that we have. half of the council, i want to thank you both for your leadership and your deck and -- dedication. gensler'st chairman was asked to make a few remarks. ,> i want to thank you secretary, for those kind words. five years ago when the president-elect asked you to serve, the economy was in freefall, and a number of us got together at the presidential transition, but a number of you

had much tougher jobs, because ben was sorting through that crisis, and marty was there, and it was. since that time, i think we have really come together, the dedicated staffs of the council members, agencies have all worked together, and i think the economy really is working better. finance is just about one part economy.terconnected the vast majority of opportunities, of growth and innovation is outside finance, with 94% of private sector jobs outside of finance. finance is to serve the economy and help markets operate with commonsense rules of the road. president roosevelt got that right 80 years ago, and many of those reforms of the 1930's and the success of the next 80 years, and that is what president obama did as well after the crisis that he took on

five years ago. but i think it is through these dodd-frank reforms that any of which are now being implemented. i want to mention a couple of mine around the table, if i can. i have six quick was. i think the heart reform is ensuring the largest financial institutions have the freedom to fail. i dad's small business of baltimore, if he did not make payroll, nobody was going to bail him out, and that is at the core of what dodd-frank is. that is what i was so please just last month when moody's, the large rating agency, removed this uplift them and the credit ratings of the largest tank holding companies that had come to be the cause of perceived government backing, and that ofks because of title ii dodd-frank and all over the fdic and the fed did, and ben and his people in the bank relators in supporting everything -- and marty. the second thing i think is making sure that there is enough

capital on hand, and i know -- where is dan? i've have been on all these international meetings where dan has been tireless, along with tom's people, and making sure there's enough capital in the system and the stress tests really work. that is really coming into being. we have a new agency with the energetic leadership richard cordray making sure and investors are looked out for. we have a lot to do in the mortgage area. chairman sure. is such a friend of mine, and mary jo white took on the issues of hedge funds and transparency and you're getting the money market reform done, and there's a lot of reform in that way, too. because those parts of the sectors are outside the banking system directly that that was a import. fifthly, working with the fdic, everything you have done with that derivatives market.

--ee and an $80 trillion has $380 trillion market. the public can see you. 70% interest rates are already cleared. that would not have happened without dodd-frank, without the sec and so forth. each of us have been the grist cops on the beat. -- have been vigorous cops on the beat. at the cftc cannot we have worked with the justice department and the sec. we exposed the pervasive rigging against the interest rate market. our annual report highlights this. i think the last thing i noticed , just the council itself, i was honored to serve in the clinton administration as well whenever something called the president's working group. two secretary geithner's leadership, this council has come together, a place where we

can collaborate them a have honest discussions, and when we disagree, we disagree agreeably. and i think the sign of that is that tomorrow we will, as i can predict -- keep fingers crossed -- i think we will bring an important role across -- rule across the line, the vocal room -- volcker rule. again, thank you. not have a statement. i want to thank you, mr. secretary, for those kind words, and thank my colleagues on the council. very rewarding working with all of you, and i think the council has served its purpose of helping us work together better and to better coordinate our efforts. very important that we recognize the financial system is a system. we cannot look at a piece by piece, but as a whole, and the council has been

effective in promoting that holistic approach to oversight and regulation. so thank you, and again, it is been a pleasure working with all of you. >> on behalf of the council, thank you both for to read this service. [applause] -- four tremendous service. -- for tremendous service. [applause] as we approach the end of the year, i think it is safe to say that in recent months we have seen one of the most active financial reform since the president signed dodd- frank into law. and finalize put mortgage will. this council designated companies for enhanced standards. supervision, new requirements for otc derivatives, poor trading went to into effect to reduce risks from the large and previously unregulated market them and as terry noted, we are on the verge

ruleeing the volcker completed. years were into. this work couldn't finish the final piece of the dodd-frank implementation, harmonizing international forms so that risks abroad did not pose risks here, creating strong protections for the money market fund and history, and moving forward on a bipartisan basis with significant reform to attract more private capital into the market. even as we get this done, the job of maintaining a safe financial system will continue. it is an ongoing effort that that is never finished. we have to keep up the steps to version more aggressively to identify emerging risks, and when necessary take action. for today plus meeting, we have two topics for discussion. first we will start with a very important topic of cybersecurity. it is a question of how the public and private sectors are working together to combat cyber

threats. and as this council highlighted in our 2013 annual report, cybersecurity and the broader area of operational risk is targeted focus for financial regulators. it has been an important book is for me as treasury secretary and as chair of the council. today we will hear from an assistant secretary for financial institutions whose officers, as chair of the finest of and banking infrastructure committee. we are also happy to welcome kelly king, chairman and ceo of bb&t corporation. she serves as chair of the financial services roundtable technology policy terms of, and has been instrumental in organizing efforts to address cyber security. review the two priorities for the public and private sectors and will outline the important collaborative efforts being taken to promote the financial sector's

resilience against cyber attack. with that, i turn it over to them. andhank you, mr. secretary, members of the financial stability oversight counsel for the opportunity to speak today about cybersecurity about the public-sector cost roll, and our collaboration with natural services sector. our experience over the next couple years shows that cyber threats to national institutions and markets are growing in sophistication. the changing nature of these threats prompted this cancel last year to highlight operational risk and cybersecurity in particular as worthy of heightened risk management and attention. in response to these threats, the u.s. government and financial sector have come together to identify former abilities, improve the -- vulnerabilities, reprove resilience, and improve device particles. i would like to highlight a few features of this effort begin. first, as is true with other

aspects of forgetting financial stability, this effort needs to be constant and continuous. there will not be a day where we can sit back and take our job is done. some of the reasons why the challenge will be daily are as follows >> rapidly changing technology, increasing and expanding reliance by financial companies on technology to perform business and customer theraction functions, creativity and persistence of would be cyber attackers and complexity of network architecture. so while we have made progress on her efforts to protect the financial system among we will always have much work ahead of us. second, the public-private partnership in this area is not only desirable, it is necessary. some of the threats that concern us the most and has the potential for creating the greatest harm our deliberate actions with the intent to cause damage to the financial system. as a result, protection of our financial system can succeed

only by combining the resources and capabilities of government with those of the private sector. third, this endeavor it is about protecting the financial sector as a whole from the largest financial institutions and exchanges to community banks and credit unions. accordingly, we work to reach financial institutions of all sizes and types. each stakeholder has an important role to play in this collective endeavor. i will share with you some key aspects of treasury's ongoing work on cyber security. i will outline our work to partner with other agencies, regulators, and the private sector to enhance cybersecurity. sector'sserves as the specific agency for the financial sector, which means it plays a leading role in policy development and a coordinating role in incident response. in this role, treasury has sought to increase engagement, improved coordination, and facilitate information sharing

on cyber security issues with colleagues across the federal government, particularly those involved in national security, homeland security, and law enforcement. the committee regularly with senior officials in these areas on matters specific to cybersecurity come up with in the complex of incidents and the more general operational and policy matters. more specifically, over the past year treasury has facilitated detailed cybersecurity briefings, including classified briefings, for both financial regulatory community and the financial sector. thesey occasions, briefings have been conducted by experts from other agencies. and the audience has been diverse. such as exchanges and clearing houses, large and small banks, insurance companies, credit unions, and asset managers. briefings have been held across the country to the help of partner agencies, both to amend their offices available and have assisted us in conducting the

briefings. we have also collaborated with other agencies, especially law enforcement, on incident response. anasury's role during incident often is to facilitate the provisions by other government agencies with technical assistance to financial firms. treasury is also focused on streamlining the dissemination of information we receive, notably actionable threat affirmation. to that end, we continue to improve our communications with a broader national security community so we can efficiently received threat information, analyze and declassified information as appropriate, and either to probably affected firms or to the sector as a whole. this option is performed by dedicated personnel used task is to share information on a regular, timely basis. they are in continual contact with the private sector's fsi g roup, which is a could go partner into stripping information to stakeholders. this partnership is an important building block of the public

partnership. i have indicated come other agencies in the u.s. government are also active and partners in this endeavor. thebasic concept is foundation of the executive , which was issued in february of this year. in the executive order directs agencies and departments to work with the private sector to take steps to protect our nation against cyber threats. under the executive order, we have until operating -- collaborating with other agencies to help the national institute of standards and technology to develop a framework to protect our critical infrastructure from cyber risk. the preliminary framework available for public comment, and the financial regulatory community and the financial sector both have been highly engaged in providing feedback throughout the process. the work under the executive order is vital, but it is not a

substitute for cybersecurity legislation. administration hopes to work with congress to ensure our laws keep pace with the evolving threats while protecting privacy and civil liberties. in addition to our work to implement the president's executive order, we also work daily with law enforcement, intelligence, and the department of homeland security on cyber issues. first, we look to the intelligence community to provide us with threat and vulnerability information. we work with the broader intelligence community to analyze those threats and share them with the private sector. second, we work with law enforcement and dhs to disseminate information to financial firms and provide technical assistance, and particularly in the case of an a governmentas endeavored to be present at the scene and offer any assistance we are capable of providing. third, we look at djs and other cabinet agencies in case another sector could affect the

financial sector. the experience of superstorm sandy was instructed. a firm or have difficulty functioning if there's no electricity or telecommunications, or if it's most important resources, its cannot get to work. cybersecurity is a priority for regular duties -- regulators. in addition bilateral routable reasonings, the council as a whole has been briefed on cybersecurity and other operational risk matters. this was a focus of the council's 2013 annual report. broadly speaking, the financial regulators addressed cybersecurity to regulation and guidance, supervision, and per dissipation in incident response. and -- and participation in incident response. information security procedures and testing, adequate backup systems, and emergency business continuity and recovery plans. an important goal of these

activities is to ensure that each firm under supervision has adequate policies and procedures in place to protect itself from cyber attacks and potential consequences. for example, the federal financial institutions examination council have over the years established uniform principles and standards for the examination of financial institutions during the examinations rely on manuals developed for this very purpose and for other relevant literature, including publications on standards such as the part -- from the concert. earlier this year the working group was convened to update its approach to supervision and examination, with respect to cybersecurity. another example of activity in this area is the securities and exchange commission proposed regulation. as the council appreciates

cybersecurity is a comic subject. given the nature of the threat and his potential sources, it can be addressed only through a whole government approach combined with a strong public- private partnership. that is the essence of the president's is negative or der and a summation of our efforts. we have organized the production of the financial system. cyber center here to stay, and we must remain vigilant to its ever evolving character. thank you for the opportunity to address this important issue before the council. you, mr. secretary, for allowing the on behalf of my industry to be here today, and i thank the council members for allowing me this privilege. if i make to take the privilege of a sitting our angst to andrman ben bernanke gary gensler. in the area of cyber, i will sum

it up, the world has changed. we are not going back. we have made progress, but we are long way to go. risk is increasing in pace and complexity, potential impact. it is buddhist from fraudsters to people causing disruption to andonstates manipulation disruption. it is a big risk. we have to do all we can to mitigate that risk. what has been done? over the last 18 months, our industry has been coming together to do a number of things that i would like to share with you briefly. richardss, to see -- davis and i encourage you in the effort to raise the level of awareness of and ceo's in a country from a level that in all honesty 18 months ago was not as heightened as it needed to be to a level today check it is far from where why have to become but is much more advanced than a while ago. we are making progress. ,e have heard of the attacks they have done a lot to raise

everybody's attention with regard to this area. the last 12 months we have had three cybersecurity summits. treasury has worked closely with us in pulling this together. we have great industry participation. also, mr. secretary, we have societyport from the security infrastructure. have developed a comprehensive plan in five areas. these plans are to enhance and.mation sharing improving in communication and advocacy. three areas you may be interested where we are making progress is what we call internet top level domains.

what controls the international allocation of domain names, about a year ago, it made everybody aware that it was allocating some new domains that could be controlled. working with the been working together. it has been a huge deal today because everybody's information and insurance information comvels over the dot- network. think of it as a 24-lane highway, people going 90 miles an hour. a lot of chance for people in that scenario. this is a much more controlled domain and will allow a four-lane access to a highway so your information sharing will be much more confidential.

making investments in something we call information sharing, which is an organization to analyze authorization between institutions. what we are doing there is dramatically increasing the capacity of them to make available information to all of the 14,000 x and credit unions around the country, because the day the information is moving at a snail pace, and when we get it, and in the future is to move real time. we havare happy about that. we're developing a secure cloud whereby if the future your credit card and debit card payments will not be as insecure as they are today, because while it is complex, effectively your information will never be disclosed to a merchant. it will travel through a cloud and no one outside of the banking industry will control that information.

these are three important undertakings that are going to substantially reduce the risk and make a nice step in progress toward where we need to go. we made our aggressive recovering and resiliency efforts. simulationloped a they call quantum dawn ii which is a simulation to structure what would be a cyber attack, 500 individuals and 50 organizations were involved in this over a long weekend. we have developed an information called systemic strife which stimulates a cyber attack in the payments area, which is very effective as well. in workingd progress with president's executive order, the policy directive, and we were the most engaged of to participate in the frameworks. we have also made some really nice progress in exposing the ceo ross of the banking industry eo's of the banking

industry. the secretary was kind enough to hold a briefing in march that was an eye-opener in terms of srsk, and the roundtable f conducted a comprehensive exposure to ceo's in september. we are making progress in terms of point industry together, making everybody aware, and investing a lot of money. we need help, and if i may humbly ask for some help to the industry, esther secretary, from the council, we need to continue to improve. these risk are huge. they are getting more substantial every day. we have to improve every single day. we need help in terms of ensuring the private sector and keep government agencies are really cooperating. cord neededave more information coming primarily from the intelligence agencies

through treasury. use itkely, treasury, to to mitigate these efforts. we need to declassify affirmations of the information can be gotten to the banks on a more timely aces. this is a very important point. this will go a long way to reduce that risk. you need to enhance the level of support from the telecommunications sector. happens in these attacks, as all the information comes in from the attackers, it comes in to the internet, the telecoms, and in many cases, the telecoms and to some degree the service or private are the only that can filter this malicious data and reduce the amount of data coming in to that banks. banks cannot just shut down because he would be shutting down our support of our clients.

we need their help in terms of just filtering out a lot of this... 80. which they have the cap asti to do. we want to work with government agencies, particularly treasury , to facilitate clearance is. yet been will given clearances so we can do the information and mitigating risk. expanding the industry so we can mechanismort and the already in place so we will have the channels established to take care of it. we need to work closely not only with large banks but with small banks. they don't have the capacity to

be able to defend themselves. we need a collaborative effort. the protocol would allow us to send it out for the small banks to have reasonable defenses because we don't want to expose so theys to the risk could gain entry into the system. need to continue to support effective cybersecurity legislation. we need to particularly focus on liability protection. we have limitations from a legal point of view in terms of working together to share information. thank all the council and government agencies. everybody has a great. they are

working hard and helping us a lot. i do not want any of the recommendations to imply we don't have great support. like it to include the thisies to help in comprehensive rattle. of rugrats. a lot -- made a lot of rugrats. we have shared goals. we can make this a safe way to do business in the future. >> i would like to thank the staff of the regulatory agencies for their dedication on this issue and their work on the banking and infrastructure

committee. i have been deeply involved in this since coming here. me is you meet with bankers. mrs. on the radar. i do want to make sure we have the information flowing smoothly where it needs to. some of the sharing goes beyond what we can do on executive order. i would like to invite if there are questions and comments. of the fdic, i

thought it might be helpful to briefly update the council on some of the actions they have taken. it is directly responsive to some of the needs that have been identified. establish an -- workingure with group, and the goal was to emphasize the security and resilience of financial institutions and technology service from riders and to provide a liaison on this important topic. one of the primary objectives is gap.entify and address

as you know they have a long history relating to information technology. this has well established programs of working with bank technology supervisors. other objectives include training, identifying and addressing skills and knowledge, awareness to develop external outreach regardless of size, enhanceion sharing to collaboration and coordination.

these latter two areas regarding information sharing are areas where we could greatly benefit from treasuries efforts and ones as a coordinating body cyber issues. i would also note they are committed to assisting smaller institutions. this is why much of the initial focus will be geared towards banks arehow prepared to identify threats and pulled her abilities, protect an themselves and to respond to and recover from cyber attacks today and into the future. the working group is already developing plans for additional

training for community banks and conducting risk assessment to identify gap where a additional resources may be needed. i want to recognize and thank my colleagues and their staffs for the support they are providing which arenitiatives, in addition to the work they do in information technology area. i want to underscore the opera -- the observation that cybersecurity is an ongoing issue that demands partnership among all the agencies, including the critical role in the communications sector and various financial utilities. i think this is another way in which they can play an important role. thank you. >> are there any other comments?

if not, i would move to the next and thank youenda for making this an ongoing effort he does it is an ongoing issue we have to deal with. next item on the agenda is to have the head of federal research provide a brief overview of research and analysis. >> thank you. i appreciate the opportunity to report progress on key initiatives. today i will discuss three broad areas of our work. first monitoring financial stability, our reporting on the threats, and relating them to key themes in the report released last spring. i will report on preliminary research and data standards

initiatives. first let me focus on financial stability. we are developing a new tool to monitor rats. -- threats. we measure five functions. credit,nomic, funding, with quiddity, and contagion risks. we think this functional breakdown is best suited. we qualify this with economic indicators and measurement we calculate. this has limitations. three of them are the metrics we employ them on are largely contemporaneous. we will incorporate new forward- issues into the framework. the connection between volatility and leverage may offer insight.

to capturemay fail risk. measure.s are hard to operational risk is clearly one of those. there we start by applying judgment, but we will work on ways to better qualify this risk. we identify a range of potential threats to financial stability. several are similar to the annual report. we are familiar from that report. the threat of secured funding markets. exposure to interest incomend high fixed portfolio. related fourth a

risk from a sudden shock to market liquidity. these are often related and often occur together. these identify not just the symptoms but also the cost. let me conclude i talking about our work on asset management. theelivered a report on liquidity of the asset management industry. this was intended to be and overview. it is aimed at informing the analysis of how they could create threats to financial stability. to give you a brief update on how we are filling the gaps and mentioned some results of data research. our process for measuring data gaps has read parts. second we -- has three parts. second we determine where the gaps may be.

.e fill those gaps examples partly reflect the need to monitor some of the risks i just described. two are in repo markets and financial transactions. i will mention results in three areas of research. these results largely confirm your intuition. first is the investments in eurozone names, which suggest it drove the decline over the past three years during the european sovereign debt crisis. areuggests banks generally market makers. more work is needed to assist both sides of that market. we analyzed hedge fund markets

using data collected. this suggests hedge fund leverage is inversely those that are considered level three assets, so that is a good thing on a preliminary basis. three conclude with comments. i know you agree that data standards are important and we are making necessary investments. i focus on them because much more work is needed. as you know data standards are it. this to analyze will include data quality. we have developed a framework for creating and promoting data standards. a key conclusion is to be affect standards should we adopted

universally. we all need to use the same standards to translate. two initiatives are underway. first the global identity initiative. parties toes transactions. regulators. e with we are seeking broader to sync withn efforts abroad. the universal mortgage identifier has long been needed. in her agency collaboration on that initiative is paying off. with input from industry we have just published a concept taper. the paper discusses -- a concept paper. the paper discusses implementation.

in both cases it strongly favors the use of standards to make data and reporting activities coherent and efficient. our standards cover a range of issues. other examples include acrossration organizations. first there is an adoption of for data so we can better share them. standards of quality of data collected and swap repositories. those are my remarks, and i would be happy to take questions. >> thank you, and i would ask for questions on the work. is important the work

they do. it is a new body created. we will be reviewing it with great interest. you have a body of work behind you, does it give you a different view in terms of the type of risk we need to be analyzing? are they designed to create a mechanism to support the work in thinking outside the box, looking ahead at the risk that might not come from each independent body independently? what are the things you take away from the experiences you have had as being the most important takeaways? >> there is a lot of important taken to assess and monitor

the risks. our job is to fill in the gaps between the work done among the agencies and to look across the financial system along with other organizations and agencies, so some of the work we are doing i think is really important. looking at some of the operational risks are important, and we are starting to do some work in that area along with others. at connections in liquidity and funding, i talked and what i just mentioned. i think the connections between institutions and market participants are important. it is the system we need to focus on, and that enables us to look at the system as a whole. >> think you.

-- thank you. if there are no further questions i will close with a housekeeping matter of his nose. confirm the minutes. >> i move. >> the minutes from the last meeting are approved. unless there are other items anybody would like to raise, i asked for a motion to adjourn. second? >> second. >> i look forward to seeing everybody at the next meeting of the council. thank you. >> they covered my mental health first few meetings i had, and then they never showed up anymore. i flew to the white house and

met this woman who was one of the press people. i said, nobody ever covers my meetings. she said, it is not a sexy issue, but we found out what was .eeded, developed legislation oneassed through congress month before he was involuntarily retired from the white house. it was one of the greatest disappointments of my life. >> first lady rosalind carter tonight. and www.c-pan radio span.org. >> now a washington journal

discussion on the medicare law. we will show you as much as we can for the program on first ladies. -- before the program on first ladies. host: we are joined now by jeffrey young a health-care reporter from "the huffington post." walk us through how the affordable care act impacts medicaid recipients. guest: this is supposed the a fairly simple question to answer. is about $15,000 and change that we're supposed to secure coverage for anyone. they did not have to be disabled. it is a patchwork of requirements in all of the states and d.c. the supreme court upheld the rest of the law last year saying states could opt out of the extension. about half the states are doing it. host: why only half the states? guest: it is almost entirely a

partisan issue. there are a couple of republican governors they got behind this and a few democrats that were not able to get their legislators on board with it. there are a lot of reasons cited by opponents of the expansion. mainly it comes down to money. the government is paying the entire cost of the expansion. states will pick up 10% in future years. for some states, that 10% is more than they wanted to spend. host: we are talking to jeffrey young, health-care reporter for "the huffington post." the number for republicans, 202-

585-3881. democrats, 202-585-3880. independent, 202-585-3882. bobby jindal. let's listen to what he had to say. [video clip] >> we made the right decision not to expand medicaid. we are building a bottom-up alternative, delivering better health care for our people. host: your take. guest: they are not expanding coverage to uninsured residents. if you think that is important, it is not going to accomplish that. he may not want to spend the money on that. there are concerns about not

enough primary care doctors. there may be interesting things with health care delivery at the state level in the way that medicaid is carried out. know where are they attempting to get health coverage to these folks, with one possible exception in wisconsin. scott walker has shifted some of the medicaid people onto the exchanges and offered medicaid. that may be on hold because of the problems at the federal exchanges. host: when you look at these decisions, who is making the decision, the governor or someone else? guest: for the most part it is

governors who were never interested in the first place, like governor bobby jindal. the legislatures were on board. republican majorities did not want to do it, either. there may have been bills put forward but they did not go anywhere. in florida and new hampshire and missouri. in some cases, the governor of kentucky was able to do the expansion by fiat. just about a month ago, john kasich used a fairly obscure budget panel made up of lawmakers and other folks who were able to sign off on this expansion. all that entails is the state accepting a bunch of federal money and carrying out the expansion. host: brian is on our line for republicans.

caller: how are you guys doing this morning? host: good morning. caller: i have a question. i was wondering if you are blaming the red states for opting out? which side do you lean on? you seem more on the liberal side this morning. if you could answer those two basic questions. guest: in addition to the budgetary matters, the political dynamic right now about the affordable care act is that for the most part republican politicians at the state and federal level do not want to be associated with this law. what you see in a lot of cases is policymakers saying we do not

like this thing. "our voters do not like this. i do not want my fingerprints near this." if they expand medicare, i think they feel they would share the blame for it. if it goes well, there is no downside for them. they can come back and do it next year or the year after that. those lawmakers or governors decide if they would go in that direction. host: dale is on our line for independents. caller: good morning. i just got approved for disability, which is $1228 a month. i was told i have to give them $594 a month to get any kind of medical coverage.

if i do that, i cannot afford to feed myself or pay my rent. i do not understand how this is affordable for somebody like me. i will wait for your answer off air. guest: i do not know enough about ohio's rule and how that fits in with other programs like disability insurance to know the situation. one thing the affordable care act was supposed to do is base your eligibility entirely on your income and not on your assets. for some people, it should limited the problem of having to spend down your assets.

you have too much money and your car is worth too much and therefore it is determined you are not eligible. host: a recent headline in politico -- host: walk us through that scenario. guest: before the affordable care act, if you want to sign for medicaid, which goes by different names in different states, you went to a state

agency and they would enroll you. there is one stop shopping or no wrong door. you go looking for health insurance. you sign up to the website and you are good to go. the government which is running the exchanges is supposed to forward your information to a state agency which will then enroll you. the data that is going out to the states is not complete. states are concerned they will get information from people, sign them up, and later determine they were not eligible. minutes we focus on rosalynn carter. of the british house of commons offer tributes

to the late president nelson ofdela, the former president south africa. ♪ >> i have learned that you can do anything you want to. they asked me if i thought the first lady ought to get paid. i said, i have to do what the first lady is supposed to do. it is such a rate soapbox -- a great soapbox. it's such a great opportunity. i would advise any first lady to do what she wants to do. another thing is you are going to be criticized no matter what you do.