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Supreme Court Upholds Federal Health Care Subsidies; Obama Says This Is A Good Day For America; Interview with Rep. Luke Messer; Interview with Rep. Dennie Wasserman Schultz; Prison Break Arrest; Affordable Care Act Survives Supreme Court Challenge; Aired 1-1:30p ET

Aired June 25, 2015 - 13:00   ET

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

WOLF BLITZER, CNN ANCHOR: Hello, I'm Wolf Blitzer reporting from Washington. I want to welcome our viewers in the United States and around the world.

We start with the United States Supreme Court handing a huge victory to President Obama by upholding a key provision of the Affordable Care Act or Obamacare, as it's called. That provision allows federal subsidies that help millions of Americans afford health care. Just a little while ago, shortly after the ruling was announced, President Obama went to the Rose Garden and offered his reaction.

(BEGIN VIDEO CLIP)

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: As the dust has settled, there can be no doubt that this law is working. It has changed and in some cases saved American lives. It set this country on a smarter, stronger course. And today, after more than 50 votes in Congress to repeal or weaken this law, after a presidential election based, in part, on preserving or repealing this law, after multiple challenges to this law before the Supreme Court, the Affordable Care Act is here to stay.

(END VIDEO CLIP)

BLITZER: The challenge was based on these four words, quote, "established by the state." Opponents said the phrase made federal subsidies illegal, in certain states. The chief justice of the Supreme Court, John Roberts, said, in his majority opinion, that he disagreed. He said the meaning of that phrase may not be as clear as it appears, when read out of context, and by using the words, such exchange, the act indicates that state and federal exchanges should be the same.

Let's not forget this is a huge victory for the president of the United States for his legacy. It's a huge victory for millions of Americans who have health insurance right now because of those subsidies.

Outside the court, cheers greeted the official announcement of the ruling and the six to three decision to uphold that part of the Obamacare law, the part that deals with these federal subsidies for health care insurance. Let's go to our Justice Correspondent Pamela Brown. She's over at the U.S. Supreme Court. What's the reaction so far, Pamela?

PAMELA BROWN, CNN JUSTICE CORRESPONDENT: Well, outside the Supreme Court, when that ruling was announced, there were a lot of cheers and celebrating, large crowds out here, saying, ACA is here to stay, holding those signing. The stakes were very high for this, because this was a key provision in President Obama's signature legislation, subsidies, helping people pay for those health insurance -- or -- and people in low-income, middle-income bracket.

So, an issue here were these four words that established by the state, that almost threw out Obamacare and could have caused major chaos. So, there was a lot of celebrating out here today because now we know, based on the ruling, millions of Americans in states with federally run exchanges, can keep their subsidies that help them pay for health insurance. There was a lot of concern that if the court struck down this key provision, there would be chaos -- Wolf.

BLITZER: This is the second time that the Affordable Care Act has been upheld by the United States Supreme Court. So, you're talking to legal experts, Pamela. Are the legal challenges legal? Forget about the political challenges, the legal challenges over?

BROWN: I think the sense right now, Wolf, is that Obamacare is here to stay, that there will continue to be challenges in the lower courts. In fact, there are some right now in the pipeline. But none that could have such a big impact as striking down this provision would have caused because, again, this was key to the Affordable Care Act, these subsidies.

And I think what you're hearing from talking to people is that this is sending a message to the challengers to take this up with your politicians not in the court. And it's interesting. If you look at what chief justice Roberts had to say in the opinion, he talked about that. He said, look, in a democracy, the map -- the power to make the law rests with the people -- with those chosen by the people. Our role is more confined to say what the law is.

So, bottom line, we could continue to see challenges to the Affordable Care Act but not on this issue and none that could have the same sort of impact on people that use the Affordable Care Act -- Wolf.

BLITZER: All right, Pamela Brown at the Supreme Court, thanks very much.

President Obama called it a good day for America. I want you to hear a little bit more of what he said in the Rose Garden following this Supreme Court decision.

(BEGIN VIDEO CLIP)

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: My greatest hope is that rather than keep re-fighting battles that have been settled again and again, and again, I can work with Republicans and Democrats to move forward. (END VIDEO CLIP)

BLITZER: Let's go to the White House. The communications director, Jen Psaki, is --

JEN PSAKI, WHITE HOUSE COMMUNICATIONS DIRECTOR: Hi, Wolf.

BLITZER: -- joining us. Hi, Jen. Thanks very much. You must be thrilled, --

PSAKI: My pleasure.

BLITZER: -- like the president. Give us a little flavor. What was it like? Did you anticipate this decision by the Supreme Court? Set the scene, the mood in the White House as you began to get this decision.

[13:05:02] PSAKI: Well, Wolf, as you know, we didn't know when this decision would come down, what the decision would be. Many of us were gathered in the chief of staff's office for a meeting about trade this morning and we heard some screams from the hallway. And I can promise you, there were many hugs, high fives. There may have been some happy dances. I'm not going to name any names, but certainly, there was elation here today.

But, really, this is about the American people, Wolf. The fact that 6.4 million people no longer need to worry about losing their tax subsidies. Sixteen million Americans now have health insurance that didn't have health insurance five years ago. People can't be discriminated against for having pre-existing conditions. And our focus is on moving forward. Let's turn the page, let's put this battle behind us and let's move forward with implementing health care all across the country.

BLITZER: Just curious, to get a little bit more flavor of what was going on inside. You didn't know if the decision would come out this morning. You certainly didn't know what the decision would be. Under these circumstances, did the president and his speechwriters have two speeches ready to go, one if they ruled in favor of the president, one if they ruled against?

PSAKI: Well, as they say, the Boy Scout motto goes, you always have to be prepared, Wolf, and certainly we were prepared. But there's no question, the set of remarks that the president delivered today is the set of remarks he was hopeful he could deliver out in the Rose Garden this morning.

BLITZER: Will the president veto any effort, if it continues while he's still president of the United States, to change Obamacare?

PSAKI: Well, I think what we've seen, in terms of proposals out there, a bunch of wolves walking around in sheep's clothing. These are plans and proposals that are trying to kill the Affordable Care Act. This really cemented, to the American people, that not only is it legal but there are benefits. This is the reality people are experiencing around the world so -- or around the country. So, who wants to unwind that and all of the benefits that people are feeling?

So, look, we don't know what people will propose, Wolf, but our focus is on working on pieces like with the 22 states that haven't yet expanded Medicaid. There's more that can be done. We want to work with those states. We want to do more to educate the American people on how they can benefit from the Affordable Care Act.

But this is not about a legislative fight. Health care is a reality. People are experiencing it. And we should all work together to move this forward.

BLITZER: What do you say to those people out there who complain about Obamacare? They say their health care costs have risen under Obamacare.

PSAKI: Well, Wolf, here are the facts that we know them as. Sixteen million more people have access to health care. People can't be -- American -- the American people can't be discriminated against for having pre-existing conditions. Women can't be asked to pay more. People -- young people under 26 can be on their parents' health insurance. The -- things are becoming more efficient. Hospitals are doing more. So, there are a number of realities.

Now, the tax sec (ph) subsidies was an incredibly important component of what was in this law. And that's why today was an important decision in that it made it possible for people to have access. And we've seen some reports by economists, including within the administration, that were showing that this actually has helped many more people have access and brought down the cost, in many ways, across the country.

BLITZER: Jen Psaki, a very happy Jen Psaki. A very happy president --

PSAKI: Yes.

BLITZER: -- of the United States. Would you say this is one of the two or three happiest days, as president of the United States, for the president?

PSAKI: Well, it's hard to rank happy days. I would say that this is certainly one where we're just elated for what this means for the American people and we're looking forward to redoubling our efforts on getting people to understand, across the country, how they can benefit from this law.

BLITZER: And you can thank those Republican-appointed justices, including the chief justice, John Roberts, and Anthony Kennedy appointed by Ronald Reagan, for this six to three decision. The Democratic-appointed more liberal justices were always expected to go your way.

Jen Psaki, thanks very much.

PSAKI: Thanks, Wolf. BLITZER: We'll have much more on the affordable care historic

decision by the U.S. Supreme Court today. We're going to talk more about the effect of all of this on the president's legacy. We're also going to get a different reaction from a Republican member of Congress. Not very happy on this day.

And later, a new arrest, nearly three weeks after that Hollywood-style prison break. How a prison guard may have helped two killers escape, possibly without even knowing it.

[13:09:35]

(COMMERCIAL BREAK)

BLITZER: I want to update you now on the breaking news out of nation's capital and a major victory for President Obama. The United States Supreme Court today upheld a key provision of the Affordable Care Act known as Obama care. The decision means roughly 6.4 million Americans will continue receiving financial assistance from the federal government to help them purchase health insurance.

And joining us now is Indiana Congressman, Luke Messer, a Republican, a very vocal critic of Obamacare. I know you must be deeply disappointed, Congressman. Were you surprised that it was a six to three decision, including the chief justice, John Roberts, Anthony Kennedy was nominated -- named by Ronald Reagan, that these two Republican-nominated justices decided to vote in favor of continuing Obamacare?

REP. LUKE MESSER (R), INDIANA: Yes, sure, I was surprised. I think it's a disappointing day for the American people. You know, the decision today doesn't change the fact that the health care law is broken. It doesn't change the fact that the health care law is unpopular. And while there certainly have been some winners under this law, 10s of millions of Americans have seen their premiums go up. They have deductibles they can't afford. And so, now, we have to be focused on, what do we do for all of those people who have been armed by this president's health care law?

BLITZER: Well, the president points out that a lot of people have benefited by it. For example, parents now can keep their children on their own health insurance policies until they reach the age of 26. Do you support that?

MESSER: Yes, I do. I support the fact that parents will be allowed to keep their kids on the law. And there certainly have been some winners but there have been a lot of losers, too. Wolf, I talk to them every day back in my district. And what we have to do now, the Supreme Court decision has come, we have to focus on what we can do to help those hurt by the law.

BLITZER: What about the law allowing people to get health insurance and no longer having to worry about pre-existing conditions? As you know, in the old days, if you had a pre-existing condition, the health insurance companies wouldn't necessarily sell you that health insurance. Is that new provision in Obamacare something you support? MESSER: Yes, I do support that. But I -- you know, I don't support

taxing young, healthy people to pay for folks that otherwise, you know, fall within this law. I don't support the 30-hour, full-time workweek mandate under the law that has decimated the 40-hour workweek in America.

[13:15:10]

Again, there have been winners under the law. There's some good provisions in this law. There have been a lot of people hurt, too.

BLITZER: For all practical purposes, you can - you have a decisive Republican majority in the House, a majority in the Senate. You can continue passing legislation to revise or change or get rid of Obamacare, but for - the president's going to veto that legislation and you don't have a two-thirds majority to override a presidential veto. So what's next in your effort to kill Obamacare?

MESSER: Yes. I think we have to keep our promises. We're going to continue to stand up to this president's law, including potentially reconciliation that would try to repeal it. I've mentioned to you some of the areas of the law that we ought to try to fix. And I think what comes next for Republicans here in Congress is, we're going to have to do the hard work of coming forward with our own plan. There are several different Republican plans out there. I think you'll see plans rooted in tax credits, trying to deal with the competition across state party lines, or state boundaries, and I think you'll also see us look at medical malpractice reform and health care savings accounts.

But we have a responsibility now, if we're going to complain about this law, we've got to show the American people what we would do if this law was no longer the law of the land.

BLITZER: All right, Luke Messer is the Republican congressman from Indiana.

Congressman, thanks very much for joining us.

MESSER: Glad to be here, Wolf. Thanks.

BLITZER: All right, Luke Messer joining us.

Coming up, the Florida Democrat, the chair of the Democratic National Committee, Debbie Wasserman Schultz, she obviously is elated on the Supreme Court decision ruling in favor of continuing Obamacare. We'll get her reaction and more when we come back.

(COMMERCIAL BREAK)

[13:20:44] BLITZER: More than a million people in the state of Florida alone are probably breathing a sigh of relief today following the historic United States Supreme Court decision in the case King versus Burwell. Florida is one of 34 states that has not established an insurance exchange under the health care law. Instead, relies on federally run marketplace exchanges. I'm joined now by the chair of the Democratic National Committee, the

congresswoman, Debbie Wasserman Schultz, who represents a district in south Florida.

You must be thrilled by this decision.

REP. DEBBIE WASSERMAN SCHULTZ, DNC CHAIRWOMAN: Absolutely. We have 1.3 million people in Florida who get subsidies as part of their insurance coverage under Obamacare, that their coverage would have been in jeopardy and now they'll be able to maintain their affordable quality health care coverage.

BLITZER: And you blame the governor, Rick Scott, for the fact that Florida's not one of those states that has a state exchange that could do this.

SCHULTZ: Both for the fact that we don't have a state exchange, as well as his refusal to accept Medicaid expansion so that we could insure another 800,000 people who go without coverage as a result of his intransigence.

BLITZER: Do you think he'll change his mind as a result of the Supreme Court decision, which was a 6-3 decision, including two Republican appointed justices, including the chief justice?

SCHULTZ: Unfortunately, no. I mean there was a lot at stake. I just actually - you know, got close to shutting down the government this month over their refusal to extend that expansion coverage under Medicaid. I mean it's very obvious that the Republicans, all of them, the whole lot of them, are focused on obstruction. I mean you had the statements released by the candidates for - running for the Republican nomination, all of the major candidates sent a statement out saying that they support full repeal. That this decision means nothing to them. It's just (INAUDIBLE) -

BLITZER: Let me play a clip by the House speaker, John Boehner, reacting very negatively to the Supreme Court decision. Listen to this.

SCHULTZ: (INAUDIBLE). OK.

(BEGIN VIDEO CLIP)

REP. JOHN BOEHNER (R), HOUSE SPEAKER: The problem with Obamacare is still fundamentally the same. The law is broken. It's raising costs for American families, it's raising costs for small businesses, and it's just fundamentally broken. And we're going to continue our efforts to do everything we can to put the American people back in charge of their own health care or not the federal government.

(END VIDEO CLIP)

BLITZER: And you heard Luke Messer, the congressman from Indiana, basically saying the same thing. He says people in Indiana, they're complaining to him about the rising costs of health insurance. SCHULTZ: You know, this is a case of sour grapes and a case where

Republicans are entitled to their opinion, but not their own facts. The facts are that health care insurance rates are increasing at their slowest rate in 50 years. We have 16 million people who have health insurance coverage that didn't have it before.

And if you go with the Republican plan, you have young adults, millions of them, who would lose their insurance coverage, that they can stay on their parents' plan until they're 26. On average, seniors now save about $1,600 because the ACA closes the donut hole in their prescription drug coverage. You have women with - millions of Americans, 129 million Americans live with a pre-existing condition, like I do, Wolf, as a breast cancer survivor. The Republicans, by supporting full repeal, would take that peace of mind that we now have away from us and deny us access to quality, affordable health care.

BLITZER: What they say is they could craft new legislation -

SCHULTZ: Well, where is it?

BLITZER: A new law that will honor that commitment to pre-existing conditions.

SCHULTZ: That's - that's -

BLITZER: The other - the other things that you like.

SCHULTZ: You know what, I'm not from Missouri, but I say, show me, because they don't have a replace. They've said repeal and replace for so long, they've dropped "replace" now. They don't even say that. They don't pretend. All they want to do is repeal and they want to take away health care for millions of people.

BLITZER: Very quickly, there are two Floridians running for president in the United States right now, the former governor, Jeb Bush, Marco Rubio, the current senator from Florida.

SCHULTZ: Right.

BLITZER: On this issue, from your perspective, who's better?

SCHULTZ: Well, they're both awful. I mean Jeb Bush actually issued a statement saying that the law was fatally flawed. What's fatal about the whole issue of health care is when people don't have it. And Jeb Bush, Marco Rubio, all of the major candidates for the nomination for the Republican - for the Republican nomination for president would repeal Obamacare, would ignore this decision, ignore the fact that our president was re-elected, you know, is supporting the upholding of Obamacare. We have two Supreme Court decisions, millions of people with coverage, health care increases coming down and they still support repeal because they kowtow to their right-wing Tea Party base. That's all they care about.

[13:25:06] BLITZER: You don't like either one of them, is that what you're saying?

SCHULTZ: I don't support anyone who wants to take health care away from millions of Americans who have it now.

BLITZER: On this issue, they're both about the same from your perspective?

SCHULTZ: They both support full repeal. They both would deny people access who have it now. And they both refuse to support making sure that the 800,000 Floridians who don't have access to health care can get it.

BLITZER: Debbie Wasserman Schultz, thanks very much for joining us.

SCHULTZ: Thank you.

BLITZER: Debbie Wasserman Schultz is the chair of the DNC and the congresswoman from south Florida.

Up next, what does today's historic Obamacare ruling mean for the president's legacy and for Republicans who are still trying to repeal the law? Our political panel is standing by. We'll weigh if on the political fallout of what's going on.

(COMMERCIAL BREAK)

BLITZER: Welcome back to our viewers here in the United States and around the world. I'm Wolf Blitzer reporting from Washington.

President Obama's applauding the 6-3 U.S. Supreme Court ruling that upheld a crucial part of his health care reform law. Obamacare, the Affordable Care Act, as it's called. Here's what the president said at the White House Rose Garden just a little while ago.

(BEGIN VIDEO CLIP)

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: For all the misinformation campaigns, all the doomsday predictions, all the talk of death panels and job destruction, for all the repeal attempts, this law is now helping tens of millions of Americans. And they've told me that it has changed their lives for the better.

(END VIDEO CLIP)

[13:30:03] BLITZER: All right, let's discuss what this means for the president of the United States. Joining us here in Washington, our senior political analyst Ron Brownstein, our chief political analyst Gloria Borger, and our CNN political commentator Donna Brazile.