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Obama Changes Keep Your Health Plan Line; White House Briefing; In All Situations Insurance Is Better and More Quality; Obama Modifies Health Plan Promise; Governors' Races in the Spotlight;

Aired November 05, 2013 - 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: That's somewhat different from what the president said last week. Listen to this.

(BEGIN VIDEO CLIP)

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: For the vast majority of people who have health insurance that works, you can keep it. For the fewer than five percent of Americans who buy insurance on your own, you will be getting a better deal.

(END VIDEO CLIP)

BLITZER: And that's obviously way different than what the president kept on saying in this effort to get health care reform passed.

(BEGIN VIDEO CLIP)

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: If you like your doctor, you can keep your doctor under the reform proposals that we've forth. If you like your private health insurance plan, you can keep it.

If you like the plan you have, you can keep it. If you like the doctor you have, you can keep your doctor, too.

We will keep this promise to the American people. If you like your doctor, you will be able to keep your doctor. Period. If you like your health care plan, you will be able to keep your health care plan. Period.

(END VIDEO CLIP)

BLITZER: Let's go to our Senior White House Correspondent Brianna Keilar. She's over on the north lawn of the White House. So, what's going on over here at the White House? The president clearly trying to clarify what he earlier had said given the new realities.

BRIANNA KEILAR, CNN SENIOR WHITE HOUSE CORRESPONDENT: That's right, Wolf, and we've seen him now this week as well as last week acknowledging that the reality of what we're seeing doesn't really hue to that key promise that he made as Obamacare was really getting out of the gate and as it was moving through the Congress. I think this has surprised the White House a little bit that this has created such a stir, so many people who have seen cancellation letters. And I think that's because they look at a lot of the people who have cancellation letters feel like they are part of what they call the five percent of Americans who have insurance on the individual market. People that White House officials will say many of them are underinsured. They don't have protections against preexisting conditions, hospitalization, for instance, might not be in their insurance plan.

And I think there were some calculations among some policy folks and certainly some political folks that even if these people were to lose their insurance that they would be able to have an alternative. The idea would be that alternative would provide better coverage, would provide a competitive price. But one of the big problems for the White House is that a lot of the people who were seeing the cancellations, Wolf, aren't able to really turn to HealthCare.gov, that online exchange, and purchase insurance. And a lot of people are just really upset that they've seen this cancellation and that they have this uncertainty at this time -- Wolf.

BLITZER: Hold on for a minute, Brianna. I'm going to bring you back but Jay Carney is now answering reporter's questions.

JAY CARNEY, WHITE HOUSE PRESS SECRETARY (live): -- problems that have caused a lot of Americans consternation when they're dealing with Web site. And we're making sure that millions of Americans who are looking for information about their health care options are able to get and that they're able to register and enroll.

You know, when it -- when it comes to that provision within the law, the grandfathered in plans that existed before the Affordable Care Act was passed, that is obviously what the president is referring to. He was also referring more broadly to the general principle and promise of the Affordable Care Act which is that if you're one of the 80 percent of Americans who is insured or covered through an employer plan or through Medicare or Medicaid, you don't -- or the veterans administration, there is no change for you except for an increase in benefits that everyone receives as a result of the Affordable Care Act. If you're one of the 15 percent of Americans who are uninsured, who's only recourse for health care is the emergency room, then you have nothing but better options because you have available to you potentially free or very affordable health coverage. Free if it goes through Medicaid or affordable options that did not exist for you before.

If you're one of those Americans in what makes up only five percent of the population who currently receive -- get coverage of some kind through the individual market and had a plan before the law passed that has not been changed by your insurance company, hasn't been canceled by your insurance company, downgraded by your insurance company, you can keep it. It's written into the law and was explained by Secretary Sebelius when the rule associated with that provision of the law was published in 2010.

However if you are in the individual market and your insurance company changed your plan, downgraded it, you -- that -- you know, your insurance has to meet the basic standards set by the Affordable Care Act. And what our job is and the failure of the Web site to function effectively has made this job more difficult is to make sure those Americans that portion of five percent of the population are getting the information they need to know that they can avail themselves, half of them, of tax credits that will make their insurance cheaper than it otherwise would be, that in all situations for them, the insurance options they have available to them is better, more quality coverage than what they're getting now.

And as the president said in Boston and said again last night, there will be a portion of them, a smaller portion of those individuals who will play -- who will pay higher premiums at least on the front end. And the president talked about that in Boston and talked about it again last night.

But we're focused on all these aspects of getting this implementation on track and so that Americans across the country are able to get the benefits that the Affordable Care Act promises.

UNIDENTIFIED MALE: Those percentages might be small. They actually represent billions of people who are getting these notifications. And, you know, the chief of staff (INAUDIBLE) met with some insurance CEO -- company CEOs today to take issue with that. So --with these notices and presumably because they're not providing enough information to customers. So, one (INAUDIBLE) clearly this is in the forefront of the White House. Why wouldn't the legislation, again that's being proposed that would simply expand -- in one case, that it would extend it through 2014. And I think that that's a Republican -- House Republican proposal that whatever your plan is, you can keep it?

CARNEY: Well, I haven't reviewed or seen an examination internally on any ideas the people have put out about legislation, so I don't have a response to a specific proposed piece of legislation. I think that the broader principle is that if you're going to assert that insurance companies can continue to offer substandard plans, bad apple plans, for example, that do not provide hospitalization or have car bouts that exempt from coverage the very chronic condition you may have, often in a way that the purchasers of this insurance don't even know, that that's -- that undermines the fundamental promise of the Affordable Care Act is -- which is that everyone in America should have access to affordable, quality health care coverage.

But that's -- again, that's not in response to any specific idea that people are banding about on the Hill. I think that that is the explanation for the broader approach which is that back when the law was being written and the provision that the president insisted be part of the Affordable Care Act that allowed for the grandfathering in of existing plans on the individual market so that if you have that plan and you wanted to keep it, you could.

But you couldn't apply that hypothetically to plans that did not exist because basically you would be undermining the central promise of the Affordable Care Act which is that a sort of bottom baseline of coverage that everyone should enjoy. Which means that mental health services are covered, preventive services are covered. There are no annual or lifetime caps. There are all sorts of benefits that are basic to every plan offered under the Affordable Care Act. You can't be charged double if you're a woman which was something that insurance companies regularly did because they could.

And it's important, as we have this discussion, that we remember that the status quo ante here, that the world back to which many critics want us to go is a world in which insurers have that power to say that, you know, you're relative who has a preexisting condition, either it has no chance of getting coverage or is going to be charged so much that he or she can't afford it.

So, you know, the whole here is important to look at even as we talk about slices. The whole is based on a principle that there ought to be affordable, quality health care coverage available to every American.

UNIDENTIFIED MALE: Is the president troubled by --

BLITZER: All Right. So, you got the gist of Jay Carney defending the president. That's his job. He does it every day. Answering reporters' questions.

Let's assess what we just heard. Let's bring in our Senior Political Analyst Ron Brownstein. He's joining us right now. He's the editorial director of the "National Journal." How much credibility has the president lost because what he said then isn't necessarily what he says today?

RON BROWNSTEIN, CNN SENIOR POLITICAL ANALYST: Yes. No, I think the cost has been significant. And look, Wolf, it's in the context of everything else that's happening with the health care law.

First of all, the basic context for this is that we are seeing the most sustained post implementation resistance and political conflict over a major entitlement really, at least in Social Security and arguably exceeding that. So, there is a very charged atmosphere here and the administration has given the critics a lot of ammunition here. Both with the -- and most importantly with the failure of the Web site on launch and now with the president being forced to, as you showed in your sequence, really become much more precise in his promise about what is changing and what isn't changing for people in the individual market.

BLITZER: Do you believe all these reports that we've been getting over the past few days, Ron, and I know you've seen them, that even at the time in 2009, 2010, there were some involved in the health care push working for the president who said, you know, Mr. President, maybe you should be a little bit more precise. Don't say, if you like your health insurance policies, you can keep your health insurance policies, period, because there may be some nuances. Some of these folks might not be able to keep these health insurance plans as promised. But the political guys said, you know, you can't deviate otherwise you'll undermine support for the legislation.

BROWNSTEIN: Right. I have not reported that myself. But it seems perfectly reasonable, that conclusion, because -- look, because the law is very clear in what it does. It does grandfather in individual plans that have not been changed. But if it has been changed, it has to meet the new standards established in the law. And as Jay Carney points out, the vast majority -- the vast majority of Americans who receive coverage do so either through employer provided care or existing government programs that are not affected by this. But this does affect that portion in the individual market.

You know, Wolf, the solution to this -- excuse me, Wolf. The solution to this problem is the same as it is for really all the other political challenges they face which is they have to get people signed up. I mean, their core defense here is that if could can get on the exchange, if you could see what's available to you with the subsidies, you might be able to find better coverage at less cost. There are some anecdotes to that effect, but as long as they are not moving people into this system, it exacerbates that political vulnerability.

BLITZER: They've got to fix that Web site. They say for the vast majority of Americans, it will be fixed by the end of this month. But we shall see. If they don't get it fixed by then, this plan is going to be in deep, deep trouble as you -- as I'm sure you agree and everyone seems to agree, including officials inside the administration who are working feverishly right now to make sure this Web site works and works well.

All right, Ron, thanks very, very much.

Other news we're following including the polls. Many of you casting votes today. The big base is on our -- races on our radar screen right now in New Jersey and Virginia, two states picking governors today. The Virginia race looks to be relatively close so that could give us a sense what to expect in 2014. Stay with us. We're watching the political contest today.

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BLITZER: It's election day for a lot of you out there with an emphasis on local elections and ballot initiatives. New York, Boston, Detroit, they're among the cities choosing mayors today. There are also a couple of races with national implications. In New Jersey, the governor, Chris Christie, is looking for another term. He's also looking to keep up momentum for a possible presidential run in 2016. And in Virginia, it's a tight governor's race, relatively speaking. Terry McAuliffe, the former chairman of the Democratic Party, he's running against Ken Cuccinelli, a Tea Party backed Republican who's the state's attorney general.

Our Dana Bash is watching all the action in Virginia. Erin McPike is keeping tabs on what's going on in the New Jersey governor's race.

Let's start with Virginia. Both Democrats and Republicans closely, closely watching that governor's race and its implications for 2014, 2016.

Dana, Virginia's a battleground state. As we all know, the president carried it twice in the most cent elections. What do we expect to learn from today's outcome?

DANA BASH, CNN CHIEF CONGRESSIONAL CORRESPONDENT: Well, Virginia and the governor's race four years ago, it was really a canary in the coal mine for the Tea Party movement and the GOP sweep, which was a year later in 2010 in the House. It was one of the first places we really saw a grass roots frustration with the government, with Washington translate into a GOP win. But now, Wolf, four years later, the GOP candidate there, Ken Cuccinelli, he's been trying to recapture that, especially in the recent weeks as the Obamacare law has struggled big- time. But according to most polls, he hasn't been able to do that. The Virginia electorate this year doesn't seem to be willing to try someone who Democrats - Terry McAuliffe in particular has been spending millions to paint as extreme.

Now, if McAuliffe goes on to win, as polls suggest right now, it's tight but he is at least in the lead, the election will cement Virginia as a true swing state. You mentioned Barack Obama took advantage of the changing electorate, especially in northern Virginia, with a surprise win in 2008. He repeated it in 2012. But if Terry McAuliffe wins the governor's race, he will be the first Democrat elected Virginia governor with a Democrat in the White House, Wolf, since 1965, almost half a century.

BLITZER: Yes. Is this a referendum in Virginia on the Tea Party movement?

BASH: You know, it could be, but it's hard to really tell because of the fact that Virginia is a little bit different. Democrats are going to certainly, if they do win, going to say that this is, you know, the end of the Tea Party movement, but they have to be careful not to read too much into it because Virginia is, of course, very close to Washington, D.C., home to hundreds of thousands of federal workers, people who rely on federal contracts, and the government shutdown really does appear, if you look at the polls, to have hurt the Republicans.

But a McAuliffe win, never mind the Tea Party, would put a feather in the cap of an important player looking ahead to 2016, Wolf, Hillary Clinton. You know full well, you covered them for years, there are few people as close to the Clintons as Terry McAuliffe. They have been for decades. They raised a lot of money for McAuliffe. Bill Clinton campaigned there. Hillary Clinton did an event. So it could be a symbolic win for the Clintons and an important ally to have in a key primary and general election state if Hillary Clinton runs for president.

BLITZER: Yes, Virginia, a major battleground state indeed. All right, thanks very much.

And there's no doubt Terry McAuliffe and both Clintons, they're all excellent, excellent, wonderful friends. And that's why the Clintons were campaigning for Terry McAuliffe in recent days.

Dana, thanks very much.

The former Virginia governor, by the way, Doug Wilder, not always ready to tow the party line. We're going to find out what he thinks about today's race, who he's supporting, get some insight on what's going on. He's going to join us live at the half hour. So stand by for that. From Virginia, up Interstate 95 to New Jersey, where Chris Christie is looking for another four years. Will a strong showing today cement plans for a presidential run? We're taking a closer look. That's next.

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BLITZER: Voters in New Jersey are choosing a governor today. Do they stay with Chris Christie for another four years, even if he may not be around much during a presidential run? He's certainly thinking about that. Our Jake Tapper caught up with the governor earlier today and asked him about his conservative credentials.

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JAKE TAPPER, CNN CORRESPONDENT: Do you think of yourself as a conservative? Do you think of yourself as moderate? How - how --

GOV. CHRIS CHRISTIE (R), NEW JERSEY: I'm a conservative. And, you know, I've governed as a conservative of this state. And I think that's what led to some people disagree with me in our state because it's -- it's generally a left of center state. But I think that the difference has been, I haven't tried to hide it or mask it as something different. I just tell people, this is who I am.

(END VIDEO CLIP)

BLITZER: Jake's interview, by the way, 4:00 p.m. Eastern on "The Lead." You're going to want to see the full interview with Governor Christie.

Erin McPike is joining us from New Jersey right now.

So his presidential aspirations clearly playing a role in today's race. It's expected to be a blowout, but he's trying to run it up to show how impressive he can win in New Jersey.

ERIN MCPIKE, CNN CORRESPONDENT: Well, Wolf, that's right. And I would point out to you that one of Barbara Buono's - that's his opponent - one of her two ads said, I'm the only candidate in this race running for governor. And, of course, the suggestion there is that Chris Christie is already running for president.

And, you know, he's been very overt about the fact that he is open to a presidential run. He said in a debate in early October that he can walk and chew gum at the same time. And what that essentially says is, he will serve out his second term, but at the same time he will do things to think about his future. And one of those things, Wolf, is that just next year, Chris Christie will run the Republican Governor's Association, and that's a fund raising association that former Republican governors have used as a launching pad to go around the country and raise money. And it's a launching pad for a presidential run.

What we have seen in the last couple of days that Chris Christie is clearly gearing up for that potential. He's been campaigning the past two days with New Mexico Governor Susana Martinez and he suggested that she is another Republican conservative governor in a blue state who's good at reaching across the aisle, which is one of his big messages to the Republican Party right now, and that is you can stick to your conservative principles while at the same time reaching across the aisle and working with Democrats. Not all conservatives like that, of course, and we'll start seeing what he's going to do to sort of shift to the right after this race is over.

Wolf.

BLITZER: You didn't see a lot of the national Democrats going into New Jersey to campaign for the Democratic challenger to Governor Christie. I don't think the president went. He didn't go to Virginia to campaign for Terry McAuliffe. I don't think he went to New Jersey, right?

MCPIKE: Wolf, that's correct. He obviously did campaign with Cory Booker. He endorsed Cory Booker, who was running in the special election for Senate. But you're absolutely right that President Obama and other national Democrats have not spent any time with Barbara Buono. The National Democratic Party made a decision months ago that this was a race that was not winnable for them, so they didn't think it was worth the investment.

BLITZER: Yes, they just sort of gave up on that whole race in New Jersey. A clear - a clear ride for Chris Christie.

All right, thanks very much for that. We're going to stay in close touch with Erin throughout the day and into the evening.

Meanwhile, other news. A stunning admission from the mayor of Toronto today.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Do you smoke crack cocaine?

MAYOR ROB FORD, TORONTO: Exactly. Yes, I have smoked crack cocaine.

UNIDENTIFIED MALE: When, sir?

FORD: But no - do I? Am I an addict? No.

UNIDENTIFIED MALE: When have you smoked -

FORD: Have I tried it? Probably in one of my drunken stupors. Probably approximately about a year ago. I answered your question. You asked the question properly. I'll answer it.

(END VIDEO CLIP)

BLITZER: Wow. Pretty blunt answer indeed from the mayor of Toronto. He admitted to that group of reporters that he has in fact smoked crack cocaine. He says in a drunken stupor, if you will. Over the weekend, the mayor offered a public apology for what he called mistakes he's made, but wasn't more specific. Toronto police reportedly have a video of the mayor smoking a crack pipe, but they have not released it publicly, at least not yet. What a story that is. Voters in a key battleground state, they're picking a governor today. The race in Virginia could have some far reaching impact. We're going to get special insight from a former governor of Virginia, Doug Wilder. He's standing by live. We'll discuss, when we come back.

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