lanhee chen, let me start with you. this shifts-- what we're seeing proposed is to shift from requiring that everyone have insurance to have a series of carrots, really, to get people to buy insurance themselveses will on the open market. why is that the better approach? >> well, one of the issues, frankly, with the affordable care act is that you had situation where's insurance was become unaffordable. in fact, if you look at 2015, as an example, 19.2 million americans either could not afford health insurance because they got what was known as a hardship exemption, or they paid the penalty relating to obamacare's individual mandate. so one of the things that this tries to do is to encourage the purchase of insurance. but as you say, to do it as an encouragement, rather than as a penalty. where a penalty does apply is when an individual does not make the decision to acquire coverage and that coverage lapses and they would be subject to a penalty to get back into the system. but the approach, as you know, is fundamentall

lanhee chen said that.ch part of the essential benefits that the government is so-called mandating don't you want? hospital care, emergency room care? drug care? doctor care? >> he would like for americans to choose the benefits they want. i don't believe it makes sense to give them the same plans across the board. >> lain here, you're saying we're taking away the money and letting you choose with no money. healthcare is extremely expensive. $10,000 on average per american. >> it is and the affordable care act made it less affordable. >> the affordable care act did not make it less affordable, it made it more affordable. >> year over year sounds less to me. >> the silver plan is low than the cbo predicted in 2010, we have been able to control healthcare costs and that has gone on. you tell me the one service on the essential benefits you're going to get rid of that will be better for people. >> i'm not in the business of telling people what benefits they should and shouldn't have. off the bottom ryan is wha

>> woodruff: next now for an opposing perspective on what's nxt for healthcare, i am joined by lanhee chen is a fellow at the hoover institution, who advised mitt romney and marco rubio in their presidential campaigns. welcome back to the program. what's your reaction to what happened today? >> well, thank you, judy. i think this is clearly a ut of town, if you will, tonve repeal the affordable care act and replace it with other reforms and they didn't do so. i think it is a real disappointment for those who have been seeking to do this for some time, and we'll have to see what happens next, but appears as though health care is off the tame for a period of time. >> woodruff: i want to ask you about that but what about the president's comment this is all due to the democrats, not republicans. >> well democrats certainly weren't helpful. they didn't participate in the process, obviously. but from the republican perspective, there were a lot of people here who appeared to say they wanted a perfect piece of legislation and it seems to me that they allowed the perfect to be the enemy of the goo

david: that is lanhee chen and jon selib joining us on set. joins bloomberg television live tomorrow at seven point 3 a.m. eastern time a.m. eastern time. you can find breaking news, chart and related functionality discussed on the program. this is bloomberg. ♪ scarlet: this is "bloomberg markets." oliver: let's see where stocks are trading with julie hyman. julie: stocks have taken a bit of a leg lower. it is still a very small decline. the s&p off .5%. off .2%. the last time we had a back to back drop was the end of january. a little more than a month since we've had a two day pullback. that is what we are now potentially poised for. health care is the biggest declining group in the s&p 500. a lot of this has not to do directly with the health care bill, it has something to do with president trump's week from this morning, talking about competition in drug pricing. -- tweet from this morning. we have more volatile drugmakers down today. , hospitalealth care stocks declining relative to that health care bill on concerns that they will see mor

lanhee chen, what do you think? >> yeah, i think house republicans have a lot of exposure. i think senate republicans have some exposure, too. this is something they've been talking about a very long time. the point i want to return to is this, brooke. conservatives share some of the blame because of unreasonable expectations. on the side of the moderates they've known these provisions are in the bill. for example the notion obamacare, this might gut the essential health benefits requirement. that's been part of obamacare seven years. they're wising up to the fact they might have to vote against it. if they've been opposed to obamacare they are opposed to this, too. this is coming together in a bad way right now. >> i understand we have new reaction, thank you, gentlemen, very much. new reaction from the white house. let's go back to our senior white house correspondent there jeff zeleny. jeff, what are you hearing now from the administration? >> reporter: brooke, we just talked a few moments ago with the deputy press secretary here at the white house, sara huckabee sanders

david gergen and lanhee chen, thank you. >>> president trump defends his wildest and baseless claimsd you're not. that part is true. his new interview with "time" magazine and what it could reveal about his thinking. stay with us. just like the people every business is different. but every one of those businesses will need legal help as they age and grow. whether it be with customer contracts, agreements to lease a space or protecting your work. legalzoom's network of attorneys can help you, every step of the way. so you can focus on what you do and we'll handle the legal stuff that comes up along the way. legalzoom. legal help is here. how to brush his teeth. (woman vo) in march, my husband didn't recognize our grandson. (woman 2 vo) that's when moderate alzheimer's made me a caregiver. (avo) if their alzheimer's is getting worse, ask about once-a-day namzaric. namzaric is approved for moderate to severe alzheimer's disease in patients who are taking donepezil. it may improve cognition and overall function, and may slow the worsening of symptoms for a while. namzaric does not change

joining us, lanhee chen, former policy adviser to mitt romney and ma.ood to see you both. >> good morning. >> maya, taking your temperature right now on the health care issue as it stands on the hill, where is your head on it? >> well, i don't know what i expect to happen for the rest of the day, but i do think that no matter what, we still need more time to get both the objectives of what we're trying to get done in health care reform done and have more political buy-in, obviously. and i would just point out that we've never really laid out what the major goals of repealing and replacing obamacare are. and from my perspective, one of the things i think is most important and that hasn't gotten enough attention is controlling overall health care costs. the biggest policy growth in our budget, of course, is health care, and we need reforms that will help bring those costs down a lot more than what i think have been added to the bill so far. so, i hope that's something the focus will include going forward. >> yeah. as someone who knows how this gets done,