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Lonzo Ball Named Summer League MVP; Senate GOP Health Bill Collapses; Interview with Governor Terry McAuliffe of Virginia. Aired 6:30-7a ET

Aired July 18, 2017 - 06:30   ET

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

CHRIS CUOMO, CNN ANCHOR: -- called 911 to report a possible sexual assault in the alley behind her home.

[06:30:06] This was late Saturday night. Two officers responded. One of those officers shot her.

Did they have body cameras on? Yes. Were they turned on? No, we're told by police, and of course, that is fueling a lot of confusion and speculation.

Now, coming up on NEW DAY, we're going to hear from a long time friend of Damond's and the mayor of Minneapolis.

ALISYN CAMEROTA, CNN ANCHOR: We're going to try to get answers on that.

Meanwhile, the Trump administration acknowledges Iran is complying with terms of the nuclear deal but they say Iran's nonnuclear activities show it is, quote, unquestionably in default of the spirit of that agreement. Both the president and Secretary of State Rex Tillerson are fierce critics of that deal. The administration is said to be considering more sanctions targeting Iran's ballistic missile program and state sponsorship of terrorism.

WIRE: All right. So, the Lakers Lonzo Ball, his NBA career is off to a hell of a start.

Coy Wire has more in this morning's "Bleacher Report".

You got to give it to the kid. His father, the hype, put a lot of attention on him. He stepped up.

COY WIRE, CNN SPORTS CORRESPONDENT: He sure is. He's owning the moment, ain't he, Chris? And we talk about the Lakers, their record has been abysmal the last four years. But could they make the playoffs because of this 19-year-old kid, Lonzo Ball, this year's number two overall pick has had a lot of hype to live up to, as Chris mentioned, his brazen father LaVar ball told the world that his son was going to take the Lakers to the playoffs in his very first year.

Boy, he goes down, he earned summer league MVP and led the Lakers to become summer league champs, even though he didn't play in the final. He had a calf injury. Lakers beat the Trailblazers in Vegas 110-98. So, fans now of the one

of the most storied franchises in sports, 16 championships, wondering now, is the hype real?

Check this out, the Astros laid a teammate's glove to rest at a mock funeral, three-time gold glove winner Carlos Beltran hasn't needed a glove in more than two months only used as a designated hitter. So, before the game, the players said, may that glove rest in peace. Well, Beltran said piece as in bye-bye to the baseball. He had a two- run home run once the game got started.

Alisyn, the Astros still own the best record in the American League. They didn't lose to the Mariners, 9-7, in this one. But when you're in first place, you can have some fun.

CAMEROTA: He said peace out.

WIRE: Peace out.

(LAUGHTER)

CAMEROTA: Thanks so much, Coy.

WIRE: You're welcome.

CUOMO: Very hip of you.

ROMANS: I know. Well, I'm jiggy. Thank you very much, Coy.

So, Senate Republicans this morning are plotting their next move in health care reform. They have a plan, sort of. How will if affect you and your coverage? We dig deeper on those answers, next.

(COMMERCIAL BREAK)

[06:36:03] CUOMO: All right. So what happens now if the Senate bill is done in terms of changing Obamacare? Well, if there's no replacement, what does it mean to your coverage?

Let's discuss. We have two journalists who know a lot about health care: chief Washington correspondent of "Kaiser Health News", Julie Rovner, and CNN politics national reporter, M.J. Lee.

So, Julie, the big question, right, if there isn't going to be anything different, but there is all this uncertainty, is it true that the uncertainty all by itself could cause problems?

JULIE ROVNER, CHIEF WASHINGTON CORRESPONDENT, KAISER HEALTH NEWS: The uncertainty all by itself is already causing problems, what we've seen is as insurers come forward to file their rates for next year, for 2018, they've already said they don't know if they're going to get this money that they're owed that helps low income people pay for their out-of-pocket spending. They don't know whether the Trump administration's going to enforce the individual mandate that requires most people to have insurance. Those two things together cause between a 20 percent and 30 percent rate increase alone. That's just the uncertainty part.

CAMEROA: So, M.J., what is the next move here, because we've heard two I think kind of die metrically opposed things. One is, OK, let's just repeal it. We don't need to have a plan right now. We promised we repeal Obamacare. Let's just repeal it. We cobble together a plan later.

The other is, now, back to the drawing board. Let's get Democrats in the room. Let's do this the right way. It's going to take a long time. It will be laborious, but let's just shelve it until we go back to the drawing board.

Which one is taking root?

MJ LEE, CNN POLITICS NATIONAL REPORTER: Well, what Mitch McConnell is now proposing is essentially a bill from 2015 that, of course, was vetoed by President Obama that would have repealed large portions of Obamacare but that would have gone into effect two years later.

So, this is essentially the repeal and delay tactic that Senate Republicans had ruled out earlier this year. They knew that there was no appetite for this even within their own conference and this is why they ended up pursuing the repeal and replace at the same time strategy and that, of course, has now collapsed. And I think it's really important to keep in mind as we talk about the process, just so we're clear on what it is we're talking about, what the Senate will still do is vote on a motion to proceed on the House passed bill.

So, the motion to proceed vote still needs to happen, which means that Senate Republicans need to agree to even take up this bill and at this point, that's not even clear that that's going to happen. We have been talking all week about Rand Paul and Susan Collins, that they were two no votes, that they didn't want to bring up this bill for a vote. And now, you know, just keep in mind that this has now been further complicated by the fact that folks like John McCain, Jerry Moran have come out and openly said this needs to be an open process.

So, for some of these senators who have now said essentially, you know, we need hearings, we need to have committees look into this, we need regular order.

CAMEROTA: We want some Democrats on board, they both said?

LEE: Potentially, yes. And, you know, Julie was talking about how unstable things are already. Republicans know this. They are not unaware that here's a lot of trouble right now with Obamacare. There are certain things that need immediate attention and Republicans are now openly saying this is something that we need to work on potentially with Democrats.

CUOMO: You know, it's interesting, Julie, this is obviously so much for the Republicans about getting the tax savings, that is the genius behind the president's offer of repeal now, give yourself a date certain to come up with a replacement plan that will create political pressure, but you'll get those tax savings right now from repeal, that's what repeal would mean, right, is that you would be able to repeal a lot of the tax structures that go into the subsidies and the backup for the mandate, and that money could be used elsewhere.

ROVNER: That's absolutely right. What the 2015 bill did was it repealed all of the taxes as you said. It repealed all of the subsidies. It repealed the Medicaid expansion, repealed the benefits, financial benefits from the Affordable Care Act, along with the taxes that paid for them.

[06:40:06] And they had trouble getting that bill through in 2015, even though everybody knew it was basically just a dress rehearsal. So, the idea that they could bring that bill back left a lot of people scratching their heads.

Now, there is one bill Congress must do in the next couple of months to reauthorize the children's health insurance program that expires on September 30th. There is bipartisan support for that program, so a lot of people are thinking that maybe when Congress does that, which they must do, that they might add in some of these fixes for the Affordable Care Act, but they'll need Democrats for that because they're not going to get the conservatives.

CUOMO: And if they really care and they really want cooperation and they really want a fix, just as a first step, prescription drug costs. You know you have Democrats who want to work on that, you know you have Republicans. So many people need it across this country, why don't they act on that.

CAMEROTA: M.J., Julie, thank you for sharing all of your reporting with this.

Now, for some perspective on how this will affect the states and you, joining us is Democratic Governor Terry McAuliffe of Virginia. He's the chairman of the National Governors Association.

Good morning, Governor.

GOV. TERRY MCAULIFFE (D-VA), CHAIRMAN, NATIONAL GOVERNORS ASSOCIATION: It's great to be back with you.

CAMEROTA: OK, you look happy. You woke up today feeling how?

MCAULIFFE: Well, very happy. In fact, I knew for the last couple days after all the governors met this weekend in Rhode Island that this was a non-starter. This wasn't going to go forward. This would be devastating to the families in our states, devastating to the budgets that we have to administer.

So, this is a great opportunity. Now, they need to come together in a bipartisan way, exactly what Senator McCain said. And I have been arguing for a long time, let's all get in the room, bring the governors in.

We administered these programs. We run the Medicaid programs in our states. Let's get together in a bipartisan way. This is a major policy initiative, keep the politics out of it, and let's provide health care for all of our citizens so that we can have a healthy workforce. Today is a great day. The politics is done. They cannot get this

through. Let's go back and do what she should have done day one, is fix the things on generic drugs, as you mentioned. There are things we can do when one gets released from a hospital to bundle services, cost savings. There are a lot of things we can do to save money and make sure everybody gets quality health care.

CUOMO: Well, let's pick up on that, Governor, because that would be the flip side, right? Which is that today is a terrible day because we have more uncertainty injected into the markets and the health care providers may spike their rates and we don't know what's going to happen, and the looming issue, the real concern is what you just said quickly there, costs. All the governors want more money. They say they need more help to expand Medicaid for the people who need it. But you have this huge constituencies within the GOP reasonably saying it costs too much already.

So, how do you deal with costs and need?

MCAULIFFE: We could literally save billions of dollars in this program, the one thing is give the states, give us flexibility. This is something we argued. Let us bring our best practices together, but there's billions we could save in different programs as I mentioned on generic drugs we could do and the Medicare program, as well as a post hospital stay, to bundle those services and the Medicare.

But remember on the Medicaid, who are we taking care of? I mean, we're dealing with the elderly, the disabled, pregnant women and children. Core constituents of people who need quality health care.

The problem you have today is you're exactly right, is the uncertainty in the market today. They don't know what's going to happen on the health plans and cost sharing. They don't know about the subsidies for the individuals, and most importantly, the reinsurance program which are those plans that take care of the sickest populations of America, we need at least three areas to know that the federal government will be the partner on these to fund these, and if you bring the governors in who run these programs, we can bring these cost savings to you.

But what's happened today, this is all been about politics. We're done with it. The Senate needs to show leadership, let us come together, let us fix health care, let us get infrastructure done, let us do tax reform.

But right now, Washington is ground to a halt. They're letting politics dictate policy. Let's get back what people elected us to do, work together and get things done. The governors do this on a daily basis. The Senate and the House need to do the same thing in Washington.

CAMEROTA: Governor, what you're saying is Congress move aside, you can't be trusted to do this. Let us 50 governors come together in a room and we'll get this done.

And look, that sounds wonderful. Anybody, it's music to the ears of anybody who wants a bipartisan solution, and effort. But let's face it, what the governor of Nevada wants is different than what the governor of Virginia, yourself, would want. So, is it power you're making it sound a little easier than it would be?

MCAULIFFE: No, first of all, Congress obviously has to do this, but the governor of Nevada, Brian Sandoval, my good friend, we spent the whole week talking about health care. Listen, we know we can bring efficiencies to this, but to go in and gut the program and knock all these people, millions of people out of health care, it will raise the premiums.

[06:45:00] I mean, there's things obviously we need to do. In 2014, when, you know, they first started doing this, they didn't have the claims data. Everybody rushed in. And they figured wrong on a lot of the premium data.

CUOMO: Should they show the savings up front? You think that would help this process, because they use it at such a big stick, Governor, that it's so expensive. That the rates of cost have gone up faster than any of the needs and any of the other indexes.

MCAULIFFE: Yes.

CUOMO: Do you think there should be some show of potential savings to offset the narrative of cost?

MCAULIFFE: You bet. There's got to be cost savings to it. Listen, everybody understands that we need, there are things in this bill we need to fix, to make it more cost effective, and efficient. We could do that.

We do -- we run these programs in our states. What Washington does lands on our desk. We administrate these programs. We have all brought efficiencies in our respective states.

I wouldn't say get all 50 governors back, but let us be part of the input so we can bring what our best practices are. We run these programs, but we have to save money. We have to do it in an efficient way.

But at the same time, everybody -- health care is a right. Everybody's entitled to health care and we ought to be able to deliver this in a way that everybody gets covered, but to deal and throw our most vulnerable citizens out without health care and the real winners today are the grassroots activists who have been out there at the town halls and meeting after meeting, letting their legislatures and elected officials know that we will not stand by and allow to you take our health care away. They're the true winners here today.

But they're -- let's not spike the ball. Nobody should be spiking the ball in the end zone today. This is about what do we do in the next step. And to say we're going for repeal will only bring more uncertainty.

Uncertainty is crushing this market, because the insurance companies don't know what to do, continued cost sharing for the plans, make the subsidies available for the individuals and continue the reinsurance program for our sickest population and do not come off the individual mandate.

We need everybody in this program for it to be successful as other nations around the globe have done.

CAMEROTA: Governor McAuliffe, thank you for sharing your perspective on all this.

MCAULIFFE: Thanks.

CAMEROTA: You know, he echoes what we heard from President Trump at times, which is everybody has to be covered. He has said that.

CUOMO: It's true but you have this pushback of, you can't force people to buy it. I know the Supreme Court decided this decision, but politically --

CAMEROTA: For sure.

CUOMO: -- they'll say if you force people to have it, that's the only reason they have it, that's the mandate, so important to spread cost.

CAMEROTA: Absolutely.

CUOMO: So, there's a lot of work to be done.

CAMEROTA: All right. Republicans have had seven years to come up with a replacement plan. So, can the GOP come up with a plan now that they've been dealt this defeat? We get the bottom line on all of this, next.

(COMMERCIAL BREAK)

[06:51:28] CUOMO: All right, we all know that health care matters, and we now know there's more uncertainty in the system because of what just happened with this Republican bill going down. So, are there going to be price spikes, and is there a way forward?

Let's get the bottom line with CNN senior political analyst Ron Brownstein.

What is the bottom line on better days ahead for health care?

RON BROWNSTEIN, CNN SENIOR POLITICAL ANALYST: Look, this bill has been ground up. We've been watching it in real time. It's been ground up in the collision between the GOP's historic ideology and its modern coalition.

So, on the one hand, you've got those voices on the right, Mike Lee, Rand Paul saying it doesn't go far enough in uprooting Obamacare, and you have a much larger group of moderates and even mainstream conservatives who say, look, we are taking away coverage primarily, largely from people who vote for us. I mean, you look at the numbers at the urban institute on who lost coverage under the Senate health care bill, 80 percent don't have a college degree, 70 percent in a household where someone works full time and 60 percent of them are white.

I mean, who does that describe? That describes the modern Trump coalition. There is no way around that conundrum for the Republicans.

CAMEROTA: So, where does that leave them, Ron? I mean, what is next? We heard M.J. and everybody described a repeal and delay strategy, we've heard that's one option.

BROWNSTEIN: Right.

CAMEROTA: We've also heard the sort of dream scenario of let's get everybody in a big room and start over.

BROWNSTEIN: Look, if you're saying repeal and delay, that puts you in I think just a completely untenable situation. There's a reason they didn't do that in the first place. I mean, it denies coverage to 32 million people and it reattaches the idea of taking away coverage of millions of working class working Americans, because the coverage expansion is primarily on those who, you know, are working and tying that to tax cuts for people at the top, as Chris was talking about. I mean, that is just politically toxic as can be.

Look, I think what this requires you to do if you want to move forward is acknowledge something that's been obscured in this debate. The problems with Obamacare are in the exchanges. I mean, it is with an adverse selection in the risk pool, not enough young people and too many older sick people.

But the bills are centered on cutting Medicaid, which is a completely different, you know, system. It's centered on reducing Medicaid spending by $800 billion and knocking 15 million people off of the Medicaid program. That is a nonstarter for Democrats.

If you actually said we're going to focus on the problems in the exchanges which are real, there is an opportunity for a different conversation. But the Medicaid cuts I think are simply kind of a deal breaker from the start.

CUOMO: So, is the best chance for progress not this plenary proposition where what McCain was suggesting it comes back and we go through all the steps and everybody gets involved but piecemeal, maybe you take on prescription drugs. They're a big cost driver right now, then maybe you take on the different exchanges and you do bring in governors and those select markets, you know, and kind of create a hybrid, where you help out on those exchanges.

Do you think there's a chance for piecemeal the way there was discussion about immigration being done instead of with an omnibus, being done piecemeal?

BROWNSTEIN: It's an interesting idea. Look, the core thing that has to be done is to stabilize the exchanges. The problem is that the critics of Obamacare don't really want to stabilize the exchanges. I mean, it's plausible to imagine if the Senate really hits a brick wall and they wanted to go in a different direction, you could find 50 plus one votes for something that would stabilize the exchanges. I don't think that would pass the house though. I don't think House

conservatives are looking to stabilize exchanges. They want to repeal Obamacare. It is, again, this fundamental contradiction between the ideology of the party and interests of its modern coalition. It's very hard to get around that at this moment.

CAMEROTA: Ron Brownstein, thank you very much for the bottom line on all of this.

The piecemeal idea is what many suggested President Obama should do. I mean, I think Rahm Emanuel when he was in the White House was suggesting more of a piecemeal strategy, rather than the whole kit and caboodle. That comes around again.

CUOMO: But you this opposition then from the GOP who wanted to get rid of all of that. They didn't want to do any fixing because they wanted it gone. Now, you have the same dynamic flipped, different names, same game. So the people who should matter most is you, right, and in polls we saw that you didn't like this health care plan. You also don't like spiking premiums and deductibles you can't cover.

So, what will happen next?

(COMMERCIAL BREAK)

(BEGIN VIDEOTAPE)

DONALD TRUMP, PRESIDENT OF THE UNITED STATES: We're getting it together and it's going to happen.

UNIDENTIFIED FEMALE: We're seeing Mitch McConnell throw in the towel on repeal and replace.

UNIDENTIFIED MALE: People who are part of the resistance tonight are probably popping champagne and celebrating. And I would warn them, this is not a moment to celebrate.

UNIDENTIFIED MALE: We have no damn idea where we're going from here.

UNIDENTIFIED MALE: The president has gone from saying there was no collusion to so what?

UNIDENTIFIED MALE: For all of the talks that we're doing at this, there's no there.

UNIDENTIFIED FEMALE: The players in the room have no credibility because they have lied publicly, indignantly, emphatically and constantly.