they see it as another just had. >> tearfully, really, review the entitlement very similar to the tape, all eyes on the set were entitlement of obamacare just different in form. how do you convince them since dry, is this how you marginalize women who speak up? it's going to take tax credits to make it work? interesting because corporate anyone have comments? that they need to swallow this we have to go pure now, and move forward with the bill? eric bolling, thank you. you have an awful lot of opposition in the central tenet. we're going to keep it right here for "outnumbered," >> this is all about the "happening now" starts right patients. now. >> jon: we will take it from in order to provide that transition and make it so nobody here, fox news alert, we are getting ready for what could be falls through the cracks, we have to have a system that another contentious white house allows for individuals to gain briefing. the kind of coverage that they >> jenna: we will see, press want. we, conservatives and others, secretary sean spicer expected to get back behind the microphone this hour, we are have set for a long long time covering all of the news and that we believe it is important "happening now." to equalize the tax treatment >> political affiliation is irrelevant to my work. for those purchasing >> jenna: the man that would coverage, getting coverage through their employer and those overtake investigation into not. russian interference is getting the tax credit is the grilled. >> we need steel spines, not opportunity to be able to weak knees, there is a real equalize that tax treatment here folks have talked about this for danger, i believe, that that many years actually, so that justice department could become there is not a distortion in the politicized. >> jenna: plus a new kind of tax code for who is able to gain a benefit for being able to purchase coverage or not. antimissile technology designed to target regimes like north korea. and air strikes against a tier >> reporter: you were talking

group in yemen killing a former about making sure people don't fall through the cracks. guantanamo detainee, why was he the last admission with back on the battlefield? obamacare focused on vacation or it is all happening now. the underserved were part of the ♪ equation. what is the safety net to ensure >> jenna: we begin this hour that people do not fall through with what is likely to come up the cracks beyond taxes and the at the briefing, house republican leaders finally taking a big step toward underserved who many are now replacing obamacare appeared look into the second hour of part of programs that were not before part of the program? "happening now," i am jenna lee. >> jon: i am jon scott. >> this is extremely important as well. the obamacare replacement plan is out but with the g.o.p. just the current system as you likely starting to sell it to the rest know for those vulnerable in our population, especially in the of the lawmakers on capitol hill. some republicans already medicaid population, this is a expressing reservation and the system that is broken. you've got a third of the outlook in the senate is even physicians in this country, one-third of the doctors in the less clear. country that would be eligible >> jenna: white house press secretary sean spicer could be asked about that later this hour to see medicaid patients who are not seeing medicaid patients at his first briefing in days. right now. it is not because they forgot everything we should mention on how to take care of patients, it camera. he is also likely to take is because of the rules in place questions about that make it too onerous or too difficult for them to see president trump's wiretap allegations against former president obama. medicaid patients. so we believe it is important to there is a lot to get to come into congressional correspondent allow states to have that flexibility to fashion the mike emanuel starts us off live program for their vulnerable from capitol hill. >> good afternoon. population that actually

responds to that population in a supporters of the new package are calling it obamacare gone way that gives them the authority, them the choices, them the opportunity to gain coverage and the care they ahead of two committees working ahead of this legislation believe most appropriate. tomorrow. the chairman leading the charge >> reporter: if that is not to repeal and replace obamacare happening when you give it to are greg wildman from commerce the states, is there some type of punishment or peace you're and kevin brady from house ways going to put in place to make and means committee, and they sure that happens, that they are actively selling this plan, pushing their colleagues to follow through on your intent? read and ultimately support this >> absolutely, there is accountability throughout the proposal, repealing and replacing obamacare. plan that we have that would >> these are big major moves allow for the secretary and the department to be certain that the individuals that we believe forward, we have met the task of need to be cared for are being cared for in the state at the the president and secretary price he believes this is repeal appropriate level. but we believe this is a and reform. we will work with him, but we need them on board to make this partnership. this is about patients and happen. >> as republicans, we have a partnership either periods admonition tended to make it choice. about government. we can act now, or we can keep we believe it is about patients fiddling around and squander and partnership and we want to this opportunity to repeal partner with everything a person in the land and make certain obamacare in begin a new chapter that we allow the kinds of choices of quality to exist. for the american people. house republicans are choosing >> reporter: the president to act now. tweeted earlier today and >> has to mechanic later described this as "our wonderful nancy pelosi is demanding to new healthcare bill." know the price tag from the there is a little bit of confusion.

congressional budget office, does this represent the administration's bill, and is writing a letter to house there anything in the bill the speaker paul ryan, saying "the american people and members have a right to know the full administration cannot support? >> this has been a work in progress as you know, going on impact of this legislation for over a year. before any votes in committee or the work that i had the buy the whole house" pure in her privilege of participating in counterparts and democratic when i served in the house of leader chuck schumer is saying representatives and the last congress was open and it is easy to change the name of transparent and we invited folks healthcare to a new president name. in to give their ideas, and tens >> trumpcare will make health insurance in america measurably worse and just about every way. if not hundreds of people had and it will leave more americans inputs into that process. this grew out of that, and over uninsured. it does, however, raise the the past number of weeks, we've been having conversations with benefits for the very wealthy folks on the hill, in the house and special interests. and senate and other stakeholders, and so this is a >> some conservatives are expressing reservations about work product that is a result of this proposal, some have called all of that, all of that it obamacare lite or obamacare process. the president and the 2.0. so those backing the proposer administration support this step are calling on the trump in what we believe is the right white house to get strongly behind it. direction, step that repeals obamacare and gets us moving in >> jenna: president trump said it's the beginning of review and the direction of those principles i outlined. negotiation, so i guess that is aptly put, negotiation can >> reporter: do you support everything in the bill sitting start, thank you. >> jon: federal prosecutor rod on the table? >> this is a work in progress,

rosenstein facing some tough questions from lawmakers today we work with the house and during his confirmation hearing senate in this process. it's a legislative process that to be deputy attorney general. occurs. i'm glad you pointed out the democrats pushing him to appoint bill is on the table there. a special prosecutor to as you will see, this bill right investigate russia's role in the here was the bill that was u.s. election. if he is confirmed, rosenstein would make the choice because of introduced and 2009 and 2010 by the previous admin attrition. notice how thick that it sprayed attorney general jeff sessions' some of you recall i actually turned the pages and went through that piece of announcement he is recusing legislation in a youtube. himself from investigations into the trump campaign. the pile on the right is the our intelligence correspondent current bill. catherine herridge is live with what it means is that we are more. >> thank you, we are outside the making certain that the process, senate judiciary committee hearing room. right now, we are heading into the decisions that are going to be made are not going to be made the third hour of what has by the federal government, proven to be a very contentious they're going to be made by patients and families and hearing with that nominee for deputy attorney general. doctors. if there is a dominant theme >> reporter: does this plan here with republicans and democrats, whether the current already need to be salvaged in your view, and how do you do it? u.s. attorney rod rosenstein out of merrill lynch would be >> you know what happens with willing to appoint a special these things. independent counsel to look into you start at a starting point, the russian investigation. people engage, they get involved in the process, sometimes to a >> is there any basis on which greater degree, nothing focuses you would not be able to handle the mind like a bill that is currently on the table and has a

work in progress. these investigations given that the attorney general sessions we will work through it. has announced his intention to recuse? >> i am not aware of any this is an important process to be had. requiring me to recuse at this the american people have said to time come of it as a lawyer, their elected leaders that the senator, i would have to know what i am recusing from aunt as a department of justice official obamacare process for them i have to rely on the advice i getting coverage and care is not working. that is they said. get from career staff. >> if you listen to that answer we believe it is important to respond to the american people carefully, what you see as rod and provide a healthcare system rosenstein has left the door that allows for them to purchase the kind of coverage and care open to taking himself out of that they desire. the russian investigation and bringing in a special counsel. >> reporter: you said in your letter to the house chairman democrats are pressing hard on this issue throughout the that necessary technical and hearing and are citing the appropriate changes might need to be made for this build to recent events with the reach the president's desk. resignation of national security what specific changes is the advisor michael flynn over his white house and the contact with the russians as administration looking for in this bill? >> as a mention, there are three well as attorney general jeff sessions and his decision just last week to take himself out of different phases to the process. the case. one is this bill, the legislation working through >> given all of this and a under the rules of reconciliation which is a fancy term to mean that there are only heightened level of distrust on certain things you can do from a all sides, do you support the budgetary standpoint but has to

appointment of an independent affect either spending or special counsel to look into revenue. there are things you cannot do these matters? in this bill. >> my understanding is that at those we plan on doing across least one of your colleagues called for a special counsel for the horizon and phase two which is the regulatory portion then something related to this matter while attorney general lynch was phase three which is another an office in early january, and piece of legislation that would be going through the house and she rejected the request. the senate with a majority, >> we have had some pretty contentious moments throughout super majority in the senate. the hearing, but just in the last half hour, we had in that process will incorporate all of the kinds of things that unusual exchange, put it that we believe are absolutely way between republican chairman necessary to reconstitute that individual and small-group senator chuck baxley and a market and to get us in the democratic senator al franken. position again where patients and families and doctors are al franken said during the making these decisions. hearing today that he believes >> reporter: bearing in mind for sitting attorney general jeff sessions should be recalled the cbs story, can you guarantee to their committee, and he found this plan will not have a markedly negative impact on his letter that was sent to the committee just yesterday to americans causing them to lose clarify his testimony about health insurance by the russian contact as "insulting to millions? >> i know the goal of the committee members." individuals on the hill was to african said he believes that make sure this does not increase the attorney general needs to the cost to the federal further explain what was involved in those contacts with government. the russian ambassador in >> reporter: some elements of whether he then had any contact the bill, have a question is with the trump campaign about about how they control costs, those meetings.

how they have access to medicai >> jon: catherine herridge in medicaid, the forecast for the washington, thank you. >> jenna: a lot to unpack there, we'll be watching that as states, how is it fundamentally we await a news conference from different from the obamacare press secretary sean spicer. white house also standing by, redeem [boos] redeem in terms of expanding access quest mike the second point, why didn't this bill do president trump's claim that president obama ordered trump tower wiretap even though president trump offered no away with the cost-sharing evidence and intelligence officials in many republicans have denied it, take a lesson. community ratings? >> the per capita cap, medicare >> does the presently former is a system that works for your president barack obama committed a felony? patience. you have folks out there that >> the president's tweets speak for themselves, you must make need care who need to see sure the house and senate particular physicians were not intelligence committees look able to see them. into this matter to ensure that all americans should be cited by the american people fully understand what may or may not have happened during the 2016 the situation we have when there are patients out there that election. cannot get the care that they >> jenna: susan crabtree, need. we believe one of the keys to providing appropriate care in senior congressional reported at the medicaid population is allowing the states to have the the "washington examiner," great to have you both. let's begin with this topic, if flexibility to address that medicaid population. you to talk about, frankly remember, medicaid populations understatement of the century, but how do you think the support four different immigration believe active graphic groups, disabled, white house handled any questions about

president trump's allegation seniors, healthy moms and kids that he was wiretapped? by and large are the main demographic groups. >> looks, they have not got a we the federal government forced lot of talking on television lately, this will be the first on camera briefing and almost a states mostly to take care of week, so this is a very those individuals in exactly the significant briefing for same way. describe that to the folks back sean spicer. home on main street, they say let's be candid. twitter is essentially the that does not make any sense at all. kryptonite for donald trump and you need a program that is his administration. different for the healthcare it was actually really notable moms and kids to respond to their needs that is different that president trump did not offer any provocative tweets for for the folks that are about a week until he erupted disabled and seniors. what we believe is appropriate over the weekend accusing obama is to say to the states, you of wire tapping phones. know your population best. you know best how to care for it actually coincided with something of a high point in his your vulnerable population. we are going to watch you and presidency, job approval rating make certain that you do so, but had slightly ticked upward, you know how to do that. successful congressional that would increase costs address, he just cannot help markedly in the medicaid himself. program. he is forcing his communications we are wasting significant team to come up with these amounts of money, not that folks are getting too much care, we are wasting it because it is convoluted answers trying to inefficient and there are spin what trump really meant in those tweets on saturday. significant abuses in the syste >> jenna: john mccain among system. others, susan, jason, a producer in terms of a cost-sharing, the cost-sharing measures are being addressed. it's important we run through the process. for fox news saying that this is this is the process where we unprecedented, this is a quote coming from twitter, by the way.

"this is unprecedented, he needs to say here is why i believe felt the previous administration was spending money they did not have the authority to spend, and congress is working through that trump tower was wiretapped." to make sure the rightful holders of the authority spent do you believe, susan, that the money in his nation which is the white house has to answer that congress of the united states question and they need to do so exercising that authority. today? >> i spoke to john mccain last >> reporter: mr. secretary, night as well, and he was how do the white house and you apoplectic, more so than most feel about the label days about the trump administration and "trumpcare?" >> i let others provide a donald trump's tweets about description, i like to collect claiming these wiretapping. patient care, it's about patients at the end of the day, not politicians or insurance the white house has gone through some verbal gymnastics over the companies, it is about patients. last few days to try to waive patients in this nation, especially in the individual and small group market -- i had the the reporters off the story, but they are also calling for house privilege of going to cincinnati last week with the vice president to a small intelligence committee investigations, and that is a business roundtable. very, very serious push. what of the business owners, one of the small business owners john mccain said, no, wait they are said he had 18 here, stop for a second. employees last year at this do you mean to explain that time. this year, he has 15 employees. there is any evidence behind not because he does not have the these claims before we launch an work but because of the cost of health coverage for those investigation into this, before individuals forced him, forced congress does one thing, there him to let three people go. needs to be a further explanation to the white house they are being forced to let three people go because the

and the president owes this to federal government is putting in the american people. place rules and regulations that >> jenna: that is why so many make it virtually impossible for journalists have been asking for folks in the individual and facts. small group market to provide that is why we have heard of something like the fisa warrant, coverage for their employees. this is a system that is not where is the ward, do we have working for people. something from the fbi, their if we focus on the patients, i spent reports, but there has been no fact. will collect patient care, focus on the patients, we will get to that is one of the reasons we've been doing a little reporting on the right answer. our show, just spoke last hour >> reporter: the major complaint of conservatives is to a former nsa official, a that phase one of the obamacare whistleblower, about surveillance and what repeal and replace is that it is missing a measure that would surveillance can actually be done of americans. i want you to listen to this quick clip. allow healthcare across state >> is that your assertion that lines peer the president said every american citizen continues this morning that would be in either phase ii or phase three. to be spied on by the nsa? is that something you think the >> absolutely, yes. president can do through with no warrant or oversight by executive action or you yourself congress or the courts. would do or sesame believe has >> how is that happening? to be addressed legislatively? >> is all done by executive >> there are different aspects to the purchase across state order. lines that will allow individuals to gain the kind of it is done within cooperation choices they want. with the telecommute occasions some of this might be able to be companies, and that is one of the reasons they had to get done from a regulatory or rules retroactive immunity back in standpoint, some of it will

2008 was because they were require legislation. that is where we are going to assisting in this process. need the assistance of our >> jenna: which brings up an friends on the other side of the interesting question about the aisle. the american people have president or the white house demanded that they be able to asking for a congressional purchase coverage across state investigation, how much is it lines, purchase coverage they within the president's own power want for themselves. to stop an executive order that whether it is through might be, as bill was pointing association health plans which allows individuals who are in out to us, surveilling small business groups like the fellow i just mentioned to pool americans, private american citizens? is this the topic the together nationally to be able white house wants to be talking to purchase coverage, or whether about, and is this a crusade they want to be leading on? it is a mom and dad who don't >> is a serious question whether gain coverage through their it is a distraction from what employer through something the white house really needs to called individual health pools be focusing on right now which that allows folks to pull is the big agenda item is together solely for the purpose healthcare. of purchasing coverage even i think congressional though they are not otherwise republicans want president trump did not just be tweeting about economically aligned. that allows people -- their speaking out about the bill that paul ryan introduced last night. 80 million people in the individual and small-group market, that would allow those talking about what was happening individuals to be able to behind the scenes, when you have purchase coverage and get the the fbi director james comey purchasing power of millions. apparently going to several that is huge power in authority we want to put in the hands of reports, urging the department people, we want to put in the of justice to put out a statement correcting the record, hands of patients. correcting the president, that some of that may affect require is just putting this white house legislation, yes, sir. on the defensive, not allowing >> reporter: mr. second, itself to really put its best foot forward. thank you.

two questions, but first, there is a separate issue, issue congressman john from new york that a lot of civil libertarians said the issue of denying are concerned about, but not the issue this white house really wants to be talking about right federal funds to planned parenthood should be separate now. >> jenna: interesting from whatever healthcare bill juxtaposition, get caught up in the language of wiretapping, finally emerges from congress fisa, all this other stuff and wonder is there a bigger story and defendant signed into law by that we should be asking the president. questions about? in the meantime, we are asking is that the administration's back and forth over twitter. position as well? there is an interesting judgment call editorially to have to make second question is you mentioned people who had their healthcare every day for a journalist, how plans canceled when they thought they could keep it, i believe in this might be handled at the your state of georgia, more than white house briefing we are awaiting. >> absolutely. a million people had that i think you are seeing experience. while some of the plans that lawmakers, top lawmakers in were canceled be able to come congress, senators say that back under the new health care there is a civilization-warping plan? >> in terms of planned parenthood, we think it is important that the legislature crisis in public trust going on, work its will on this process. you see the public deeply it is incredibly important that divided over this issue. a poll this morning said, it we not violate anybody's asked people across the country whether they are concerned about conscience. we want to protect the conscience provisions that trump admissions ties to russia, exist. it's also important to appreciate that through committee health centers, the 37% said they were while 49% bill being proposed right now said they were not, in 11% said would allow greater access to

they might be. healthcare for this is deeply divided, as divided as the country is right they've proposed more money for now, and so yes, i expect women's health care than currently exists. so i think they're working their sean spicer to be pummeled with best to address that issue. questions. it is a soap opera that is in terms of whether or not old pitting americans against plans that were available before americans, playing out on an international stage right now. might be available. all of the drama is really absolutely. and we believe that the eroding public trust in our opportunity to provide a robust institutions, and so the white house needs to get a handle on this and so does congress and the republicans market, of robust choices for need to make sure -- i heard one individuals across this land will be secure. republican commentator said the that's one of the keys to other day he would like to see bringing down the premium costs, for bringing down the cost for donald trump break his thumb so health coverage. we're excited about that. and look forward to that coming he cannot tweet anymore, i'm sure some white house staff feel to pass. the same way. >> if the new plan calls for certainly, these tweets need to be taken seriously, they're repealing the revenue generating coming from the president and as tax the saying goes, anything the president says is news. >> jenna: susan and josh, great to have you both, thank you. >> jon: major development in the ongoing conflict with north korea. the u.s. now sending the first part of a missile defense system

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>> jon: major developments today in the ongoing tensions with north korea, the rug bridging lodging several missiles, some report saying the north called it practice for hitting u.s. bases in japan. the u.s. is now sending the first parts of a missile defense system to japan and south korea to protect those countries from the north. china and russia are not happy about the move. all of this coming as we learn more about a secret operation against the north koreans, that news broken by a "new york times" national security correspondent david singer who joins me now. thank you for joining us. fascinating report. you've been working at it for months, i know, and did a great job putting all of the pieces

together. it is all about left of launched technology, what is that precisely? >> if you think about the launch countdown, 5, 4, 3, 2, 1, blast off, it's everything you can do to mess up a missile at that moment rather than traditional missile defense which has been trying to hit a bullet with a bn launched. what we have learned over the years after the united states has spent $300 billion since the eisenhower era on trying to hit the bullet with a bullet is that that method does not work all that well, at least for intercontinental ballistic missiles. it is better for short range missiles. left of launched is all about using cyber, electronic warfare, to try to disable the missile before it ever takes off. >> jon: it appears the united states has been quite successful because there were a number of north korean lodges that did not go as planned. >> we found about an 80% failure

rate in the launch of their intermediate missiles. but we don't know how much of that you can attribute to cyber and electronic warfare efforts because the north koreans are not the world's greatest manufacturers. welding errors, bad parts, just sheer incompetence can also contribute to that. in the early days of the u.s. missile program, we were not so hot at it, either, and even to this day on occasion, we lose. >> jon: the north koreans, you mentioned cyber warfare as one potential chink in the armor, i guess, but they're not connected to the internet by and large. how do you go after a state like that that has no connections or almost no connections to the outside world? >> they have very few connections to the outside world, but they are running a significant missile in nuclear program, and they need to be connected internally, including

to control their missiles. all missiles have some degree of electronic and computer control. so the focus has been on that. obviously, since we were working on the story with great sensitivity, we agreed with the u.s. government that we were not included in the story the techniques the u.s. was using, and we did that because we knew from statements the north koreans have made that they were onto the fact that the u.s. was messing with them, but it is not clear they knew exactly how. >> jon: you also broke the story about the stuxnet virus, and this is a sort of an iteration of that program. a >> that is right, stuxnet was the attack around 2010, it started before that, in fact on the iranian nuclear program, and that was the attack that slowed iran's ability to produce uranium and enrich it underground. that was at the time the sophisticated cyber attack the

u.s. and israel had ever conducted. the attacks on north korea are different in nature but essentially the same concept, slow a nuclear program without trying to strike it with other missiles that might trigger a war. >> jon: but the u.s. is sending that high altitude missile defense system to south korea and japan, that is hitting a bullet with a bullet type of technique, will it work? >> that system has been pretty successful against short and medium-range missiles. it is a deep and protection for the south koreans and the japanese. it would do nothing for the intercontinental ballistic missile we are worried about that could one day be tested or used against the united states. the other thing to remember, though, is that the north koreans have an enormous array of conventional artillery just above the border between north and south. the about the distance between

baltimore in washington, mark really might very much. even with missile technology, without nuclear technology, they have the ability to destroy the city of seoul. >> jon: read about it in the near times, david singer broke the story, fascinating information. back in a moment see me. see me. don't stare at me. see me. see me. see me to know that psoriasis is just something that i have. i'm not contagious. see me to know that... ...i won't stop until i find what works. discover cosentyx, a different kind of medicine for moderate to severe plaque psoriasis. proven to help the majority of people find clear or almost clear skin. 8 out of 10 people saw 75% skin clearance at 3 months. while the majority saw 90% clearance. do not use if you are allergic to cosentyx. before starting, you should be tested for tuberculosis. an increased risk of infections and lowered ability to fight them may occur... ...tell your doctor if you have an infection or symptoms...

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>> jon: now an in-depth look at the obamacare replacement plan, house republicans unveiled last night. the bill repeals key parts of obamacare including the individual and employer mandates. and subsidies for out-of-pocket expenses. it changes medicaid expansion and changes restrictions on charging more for older americans while leaving in-place dependent coverage until age 26 and their pre-existing conditions policy. joining us now for this panel

discussion, larry levitz, senior vice president for special initiatives at the kaiser family foundation and senior advisor to the president of the foundation, amy, former acting admitted trader for the centers for medicare and medicaid services under president obama and the president of the foundation for research on equal opportunity, author of "transcending obamacare: how medicaid feels the poor." thank you for being here. wanted to start with you, andy, some republicans have essentially said and democrats too have labeled this proposal as obamacare lite. do you see it that way? >> if it is light, it is extremely light. i think comparing it to president trump's own standards, which are to cover as many americans as the aca covered and do it more affordably, i think you're going to find probably all three of us agreeing that

this bill falls short. it drives costs up by decreasing deductibles -- increasing deductibles and eliminating some of the tax credits, and that individual mandate while it is about as possible as vegetables are to my kids, it's one of the things that keeps premiums low. this is going to see coverage loss from medicaid, and it is going to drive millions of americans away from the market for just affordability concerns. >> jon: larry come he said it could destabilize the insurance market. why? >> as andy said, it repeals the individual it and it mandate which has been what got people enrolled and reduces tax credits that help people afford insurance particularly for low income people. >> jon: don't those health savings accounts replace that? >> they only replace it very harshly, the health savings accounts are not really much

help to low income people in many low income healthy people have signed up. the bill does include some stabilizing elements. it allows insurers to charge older people more in younger people less. it includes ramps to states that could help stabilize the insurance market and charges a late enrollment penalty for people who have had a gap in coverage. all in all, i think this bill would not provide more stability in the insurance market than the affordable care act and could very well provide less. >> jon: what are the prospects of getting this through congres congress? >> it's going to be challenging, but first we have to say larry and andy are talking about how we need stability in the insurance market. it is obamacare that destabilized the insurance market. the question is, does the house republican plan we stabilize what obamacare destabilized? the answer to that question is not enough. there is not enough measures in this bill to restore and re-stabilize the market and make sure that low income people can

have affordable coverage. i wrote about this today at forbes, so that is the problem, some of the republican party say there should not be any effort to subsidized coverage for the poor and uninsured, but that some say they need to make sure they have health insurance and unless republicans can agree on that basic idea of what the repeal and replace plan should do, they'll have a tough time ce majority to pass it. >> jon: i want to read that something chris stirewalt put out and his halftime report on the fox web site, fox news web site. he writes "republicans have been knocking this ball around for seven years, but never bothered to craft an actual replacement,s represents one of the more jaw-dropping lapses of political foresight in recent memory." andy, take that on. >> i think this is a bill that is going to require a lot of moderate republicans in states like ohio, pennsylvania, louisiana, indiana, places that

have passed medicaid expansion to take an awfully difficult vote. essentially what it does is it cuts medicare and cuts medicaid expansion and effect in 2020, and it caps medicaid going forward. that inflicts a lot of state issues and i think moderate senators are going to find it very, very difficult to swallow. >> jon: medicaid, the idea as i understand it that the republicans are proposing, larry, is that you take medicaid and you give that money and block grants to the states eventually, not right away, but the idea being that states know best how to protect their own citizens. >> yes, what this bill does is it does cap the federal funding for medicaid on a per person basis, and it scales back the expansion of medicaid to low income people within the affordable care act. that is very consistent with republican aims to cut back on

federal spending, but there are consequences to that. it certainly means fewer people covered under the program. >> jon: if the states are getting block grants to cover their own people, doesn't that essentially do the same thing and perhaps, the idea being, it's a more efficient route? >> the first thing to understand about this per capita allotment system, it is not exactly like a block grant. it was actually first proposed by president bill clinton in 1995 as an alternative to the block grant proposal that newt gingrich put forward in that year. this is an idea that actually comes from centrist democrats, not from the radical right wing. the idea here is that that per capita allotment can follow the patient. a big element of free-market thinking on healthcare is put patients more in charge of the healthcare dollars that we spent on their behalf. if we do that, you'll have much more innovation, better quality, lower cost, and that is what republicans are trying to do. this medicaid reform in the bill is actually the best thing about

it, most impressive thing about it, and i hope however the bill evolves over time, that is the peace they build around. >> jon: why do you say it is the best thing? >> the medicaid program today is broken. there are so many people who struggle to get access to physicians, access to specialists because the medicaid program in some states pays $0.29 on the dollar of what a private insurer will pay a doctor to care for patients. a lot of doctors out there who do not take medicaid, and so you have this card that says you have health insurance, but when you actually need healthcare, it's very hard to get. migrating goes on medicaid into the private insurance market is going to do wonders for their health outcomes and their access to high-quality care. >> jon: what about the notion of selling insurance across state lines? that apparently is not part of the bill but in the pipeline yet to come. >> so they say. i want to address that point, if i might. i know he is a fan of per capita tax, i am certainly not. in my 10-year running that

medicare and medicaid program alone, we had an opioid congress, zeke epidemic, we had many unforeseen circumstances and we have to remember medicaid is a highly efficient program that has gotten very, very wide customer satisfaction among, the highest in the country, in more than half the births in the country and half of the retirement nursing home care for seniors is paid by medicaid, so very difficult to imagine how you can cap a program like that and not medic. >> jon: but medicaid may be very satisfactory to its users, but it is going bankrupt, isn't it? >> it is not necessarily going bankrupt. like other parts of the healthcare system, medicaid costs rise over time. this is really the fundamental split, i think i'm among republicans right now. there are conservatives who want to scale back federal spending on healthcare including medicaid, including the tax

credits in the affordable care act, and that is a legitimate goal, but there are consequences to that. you cannot scale back funding they are proposing and still promise that you're going to maintain coverage for people. >> jon: gentlemen, good discussion. i hope we have illuminated some of what is ahead for our viewers. leary, andy, thank you all. >> jenna: fox news alert as we mentioned, a lot of attention on the white house press briefing. we expect it to begin moments from now. just moments ago, in fact, several papers were placed on the podium, not sure exactly what it contained inside this paper is as you likely know, press secretary sean spicer often reads a statement ahead of taking open questions from the press. there is a lot to talk about today, healthcare is the big topic, but we do have still an ongoing conversation about the allegations of wiretapping that president trump made as well as other national security concerns and questions, some of which we will be covering on this program

as well. a lot of activity whether it is north korea, yemen, or the like, just want to circle back as we get back to health care being one of the top topics of the day, being that republicans put forward their plan yesterday evening. i want to point to something that the president said just a few hours ago. this is president trump on twitter. "our wonderful new healthcare bill is now out for review and negotiation. " important to keep that in mind, review and negotiation come have to start from somewhere and go from here. there is, of course, the content of the policy and also the politics around it, both deserve a little attention, so we will talk more about that now. >> jon: as i mentioned earlier, we meet may be getting "the art of the deal because what treatment from the president when it comes to the healthcare changes. we told you in the last segment about the changes proposed by republicans under the american health care act, let's talk about the politics of passing the new law. joining us now, david, former

deputy staff secretary to president clinton and brad, former deputy assistant to president george w. bush. brad, from what we are hearing so far, some of the most outspoken critics of this plan are the republicans. does this thing have a chance on capitol hill? >> it absolutely has a chance. the most important thing is to listen what president trump said, this is the beginning, not the end. we are open for negotiation, something obamacare was not. they jammed through with not one republican voting for obamacare. it is an abstract disaster, there is no choice in the matter. it must be repealed and replaced. here is the challenge now -- >> jon: i have to interrupt you, i am sorry, but sean spicer just stepped to the podium. we are going to listen to his news briefing. >> press secretary spicer: there's been an additional wave of threats to jewish community centers and antidefamation league offices. according to some reports, they have been over 100 bomb threats phoned into jewish institutions since the start of this year alone.

as the president said at the beginning of his joint address "we are a country that stands united in condemning hate and evil and all of its forms." we denounce these latest anti-semitic and hateful threats in the strongest terms. it is incredibly saddening that i have to continue to share these disturbing reports with you, and i share the president's thoughts that we hope that we do not have to continue to share these reports with you. as long as they do continue, we will continue to condemn them and look at ways in which we can stop them. now onto news of the day. use our president trump yesterday continued to deliver on two of his most significant campaign promises, protecting the country against radical islamic terrorism and repealing and replacing obamacare with a patient-centric alternative. we talked a lot about the executive order protecting the nation from foreign terrorists entering the united states yesterday. so onto obamacare, i would like to introduce the secretary of

health and health and human services, dr. tom price to come up and talk to you a little bit about the plan to repeal and replace obamacare. dr. price. >> thank you. good afternoon. first, let me just share with you what an honor it is to serve as the secretary of health and human services. i am the third physician out of 23 individuals who have had the privilege of serving as the secretary of health and human services. the mission at our department is to improve the health and safety and well-being of the american people. we take that mission very, very seriously. for many americans right now, their ability to gain healthcare or health coverage is a real challenge. for most americans, they receive their health coverage through their employer, about 175 million folks, those individuals will see note significant change other than there will not be a penalty for not purchasing coverage. for the folks in the medicare system, there will be no changes at all and the current law. but we are talking about those people in the individual and small group market, the moms and

pops, the folks around the the corner grocery stores, the corner cleaners. those individuals out there are having huge challenges gaining care and gaining coverage. medicaid is a program that by and large has a decrease the ability for folks to gain access to care and we want to make certain we address that. this is about the patients. it is not about money, it is not about something else, this is about the patient's. sadly, the costs are going out for those folks in the individual and small group markets, access is going down, and it is only gate duty by going worse. you know the story, premiums increase to any 5% over the last year on average, it was on had an increase of 116%. deductibles are going up for many folks. if you are a mom or dad out there, you make $40,000 or up to $60,000, your deductible in this market and any individual and small group market oftentimes is between $8,000.12000. that means you have an insurance card but you do not get care because you can't afford the

deductible, and we know that this is happening by talking to the folks out there trying to provide the care. a third of the counties in the united states, one-third of the counties in the united states have only one insurer offering coverage on the exchange. five states only have one insurer offering coverage on the exchange. one insurer is not a choice. so we need to make certain that we correct that. in tennessee this morning, it was announced that there are a number of counties that have no insurers offering under the exchange. insurers are leaving the market on the exchange paid last year, there were 232 insurers providing coverage, offering coverage on the exchange, now there are 167. that is a loss of about 30% in one year alone. all of this means that the patients are not getting the care that they need. the principles that we have as our guiding star our affordability. we want a system affordable for everybody. accessibility, we want a system accessible for everyone, a system of the highest quality,

system that incentivizes innovation in the healthcare system and a system that empowers patients through both transparency and accountability. the president spoke last week, last tuesday to a joint session of congress, and he laid out his principles. first, wanted to make certain those with pre-existing illness and injury were not priced out of the market. nobody ought to lose their coverage because they get a bad diagnosis. in terms of affordability, health savings accounts growing choices for patients is incredibly important. tax credits that allow individuals to be able to purchase the kind of coverage that they want, not that the government forces them to buy. we've always talked about, in terms of what kind of reforms need to be put in place, we need to equalize the tax treatment for the purchase of coverage. those in the employer-sponsored market get a tax benefit for buying health coverage. those folks out there in the individual and small group markets, no tax benefits, and that is what this plan would do. state facts ability, it's incredibly important that we allow the states to be the ones

that are defining what health coverage is and have the flex ability especially in the medicare program to be able to respond to their vulnerable possible due to my population. lawsuit abuse, the president mentioned and is incredibly important, the defense of medicine waits billions of dollars year after year and we need to make certain we are addressing that as yelp to the maxwell. the present also talked about an appropriate transition to this new phase for the country, that is important as well so that nobody falls through the cracks. buying across state lines, buying insurance across state lines, the president talked about this on the campaign over and over. american people understand the common sense nature of purchasing across state lines in it increases competition. we need to make certain that happens and then addressing the incredible increase in drug prices. there are three phases of this plan. one is the bill that was introduced last evening in the house of representatives, the start of a well, there were 119 specific rules put out as they relate to obamacare,

over 5,000 letters of guidance and the like, and we are going through everything one of those to make certain that if they help patients, we need to continue. if they harm patients or increase costs, then obviously they need to be addressed. then there is other legislation that will need to be address that cannot be done through the reconciliation process. so the goal of all of this is patient-centered healthcare where patients and doctors are working together. we think the house for introducing the bill and look forward to working with all individuals on this process. we will look to get some for doing back a few questions. for win conservative groups have filed something with rank and file members, what does it say about legislation that these groups are already out with opposition to it? >> this is the beginning of the process. we look forward to working with them and others to make sure we have the process that aligns

with the principles that we have to find that they actually adhere to or agree with as well, and that is we need a system affordable for folks, system that is accessible for individuals, of the highest quality, that incentivizes innovation and empowers patients. we look forward to working with them through this process. >> reporter: congressman jason chaffetz said today the person would have to forgo an iphone to pay for healthcare and make these choices. does the admission agree with that, will americans under this plan, will they need to make a sacrifice of other goods to pay for their healthcare? >> this is an important question because what is happening right now is the american people are having to sacrifice to get coverage. i mentioned many cannot afford the coverage they have right now, so they have the insurance card but do not have care. what our desire is to drive down the healthcare cost for everybody. the way that you do that is to increase choices for folks, increase competition, return the

regulation of healthcare where it ought to be witches at the state level, not the federal level. all of these things taken in their aggregate will in fact decrease the cost of healthcare and health coverage, and that will allow purchase the coverter: two quesr you. first has to do with guarantees that you can make as the administration's point person on this legislation. can you guarantee that whatever legislation emerges and makes it to the president's desk will allow individuals if theyike their doctor, they can keep their doctor? the second guarantee is can you also guarantee that healthcare premiums for individuals will come down with this new legislation? >> again, a remarkably important question because as you recall the promise from the last admeasure was if you like your doctor, keep your doctor, like your plan, keep your plan. those promises turned out to be not true. we think it's incredibly important for the american people to be able to select the physician and place where they

are treated themsves, that the government ought to not be involved in that process.hat in. in premi we believe strongly that through this whole prs and as it takes effect, we will see a decrease in not only the premiums that individuals will see, but a decrease in the cost of heca forolks. remember, this was another promise that the previous initiation made, you would see a decrease in $2500 on average for families across this land. in fact, what they have seen it as an increase of $2500 or $3,000, so we are going in the other direction, a direction that empowers patients and holds down cost. >> reporter: mr. sec