English subtitles for clip: File:11-15-13- White House Press Briefing.webm

1
00:00:03,661 --> 00:00:05,561
Mr. Carney:
Okay.

2
00:00:05,561 --> 00:00:09,494
So my only topper here is that
I do have a hard stop at 1:50

3
00:00:09,494 --> 00:00:11,094
so we'll get right
to your questions.

4
00:00:11,094 --> 00:00:14,460
At the end of questions,
I do have a week ahead for you.

5
00:00:14,461 --> 00:00:15,628
Jim.

6
00:00:15,628 --> 00:00:16,795
The Press:
Thanks, Jay.

7
00:00:16,795 --> 00:00:19,394
The President is meeting
with insurance company CEOs

8
00:00:19,394 --> 00:00:21,660
this afternoon.

9
00:00:21,661 --> 00:00:24,795
It seems that the announcement
yesterday is getting some

10
00:00:24,795 --> 00:00:28,528
pushback and second-guessing
from the industry,

11
00:00:28,528 --> 00:00:32,894
from actuaries, from even some
insurance commissioners

12
00:00:32,895 --> 00:00:35,528
who say that it could
result in higher premiums.

13
00:00:35,528 --> 00:00:39,126
And I'm wondering whether this
meeting is something that should

14
00:00:39,127 --> 00:00:42,728
have taken place ahead of time,
rather than after the fact.

15
00:00:42,728 --> 00:00:46,261
And does the White House
accept or disagree

16
00:00:46,261 --> 00:00:50,261
with this possibility
that premiums could increase

17
00:00:50,261 --> 00:00:53,094
because of this decision?

18
00:00:53,094 --> 00:00:54,928
Mr. Carney:
Well, there's a
couple of issues here.

19
00:00:54,928 --> 00:00:59,227
We do disagree with the
assertion that this

20
00:00:59,227 --> 00:01:02,160
is not something that
cannot be dealt with.

21
00:01:02,161 --> 00:01:05,394
In fact, part of the fix that
the President announced

22
00:01:05,394 --> 00:01:09,227
was instructions to --
included instructions to HHS

23
00:01:09,227 --> 00:01:15,094
to adjust the risk corridor --
what's called the risk corridor,

24
00:01:15,094 --> 00:01:19,860
the policy that allows for
adjustments if, for example,

25
00:01:19,861 --> 00:01:22,695
the pool is less
healthy than expected

26
00:01:22,695 --> 00:01:24,061
or more healthy than expected,

27
00:01:24,061 --> 00:01:29,428
and there are cost
changes accordingly.

28
00:01:29,428 --> 00:01:33,261
So we believe -- I mean,
there's a lot of data here

29
00:01:33,261 --> 00:01:38,027
about the portion of the
population that's affected here.

30
00:01:38,027 --> 00:01:40,695
The fact that
there's a myth about --

31
00:01:40,695 --> 00:01:44,527
while there
are healthy people, generally,

32
00:01:44,528 --> 00:01:47,494
healthier people generally
in the individual market --

33
00:01:47,494 --> 00:01:49,561
because insurance
companies could discriminate

34
00:01:49,561 --> 00:01:52,061
against those who
weren't healthy --

35
00:01:52,061 --> 00:01:54,394
the fact is that it's a myth

36
00:01:54,394 --> 00:01:56,828
that they're particularly
young in the individual market.

37
00:01:56,828 --> 00:02:03,628
In fact, there's data that shows
that the disproportionate number

38
00:02:03,628 --> 00:02:06,027
of people in the insurance
market are older Americans,

39
00:02:06,027 --> 00:02:07,895
are 40 and up.

40
00:02:07,895 --> 00:02:11,761
So having said that,
as this policy rolls out,

41
00:02:11,761 --> 00:02:14,761
and allowing those with plans in
the individual market to renew

42
00:02:14,761 --> 00:02:20,695
those plans for a more
extended period of time,

43
00:02:20,695 --> 00:02:24,861
HHS has the capacity to adjust
the risk corridor accordingly,

44
00:02:24,861 --> 00:02:29,126
if necessary.

45
00:02:29,127 --> 00:02:30,394
The Press:
But you still -- I mean,

46
00:02:30,394 --> 00:02:33,561
you have actuaries
saying -- I mean,

47
00:02:33,561 --> 00:02:35,461
is it because they're
not taking into account

48
00:02:35,461 --> 00:02:38,861
what HHS will be able to do?

49
00:02:38,861 --> 00:02:40,994
Is that what you're saying?

50
00:02:40,994 --> 00:02:42,528
Mr. Carney:
Well, I haven't seen
the actuaries' reports.

51
00:02:42,528 --> 00:02:46,394
What I'm saying is that
HHS has the capacity,

52
00:02:46,394 --> 00:02:48,761
because of the provision
within the ACA,

53
00:02:48,761 --> 00:02:54,894
to make adjustments in this risk
corridor to deal with changes

54
00:02:54,895 --> 00:02:58,994
in costs, swings in costs
associated with either

55
00:02:58,994 --> 00:03:02,428
more or less risk within the
pool of people insured.

56
00:03:02,428 --> 00:03:06,194
So, I mean, the way it works
is if the costs are higher,

57
00:03:06,194 --> 00:03:11,428
then HHS can mitigate
those costs with insurers.

58
00:03:11,428 --> 00:03:12,928
If costs come in
significantly lower,

59
00:03:12,928 --> 00:03:19,328
then the insurers replenish
the fund by passing back

60
00:03:19,328 --> 00:03:20,861
some of those profits back.

61
00:03:20,861 --> 00:03:25,727
So we believe there's a
mechanism here to deal with any

62
00:03:25,728 --> 00:03:28,161
swings associated
with this provision --

63
00:03:28,161 --> 00:03:31,594
which, remember, again,
the size of the population

64
00:03:31,594 --> 00:03:33,727
we're talking about here:
5 percent of the country

65
00:03:33,728 --> 00:03:36,594
is in the individual
insurance market;

66
00:03:36,594 --> 00:03:40,628
a portion of that
5 percent is affected

67
00:03:40,628 --> 00:03:44,094
by the cancellation notices.

68
00:03:44,094 --> 00:03:49,328
And what the fix the President
announced allows is for --

69
00:03:49,328 --> 00:03:53,161
it basically removes the
prohibition from the ACA that

70
00:03:53,161 --> 00:03:57,161
said those policies could not
be renewed from 2014 into 2015.

71
00:03:57,161 --> 00:04:01,861
This is something we
haven't talked a lot about,

72
00:04:01,861 --> 00:04:04,428
but even under the law,

73
00:04:04,428 --> 00:04:08,194
prior to the President's
announcement yesterday,

74
00:04:08,194 --> 00:04:12,594
insurers were able to offer
renewals of these policies,

75
00:04:12,594 --> 00:04:15,161
early renewals of these
policies to their policyholders.

76
00:04:15,161 --> 00:04:19,761
And so this extends that
possibility so that if you had

77
00:04:19,761 --> 00:04:25,328
a plan that was effective
through September of next year,

78
00:04:25,328 --> 00:04:26,794
you could renew it
so that it could go

79
00:04:26,795 --> 00:04:29,795
all the way through
August 31st, say, of 2015.

80
00:04:29,795 --> 00:04:31,761
So it's a way of
smoothing the transition.

81
00:04:31,761 --> 00:04:35,728
It's a way of making an
adjustment in response

82
00:04:35,728 --> 00:04:41,695
to the problems we saw with the
cancellation notices and with

83
00:04:41,695 --> 00:04:48,728
that segment of the 5 percent
that was put in this position

84
00:04:48,728 --> 00:04:54,828
where they did not feel that
they had the opportunity to take

85
00:04:54,828 --> 00:04:57,727
advantage of marketplace plans
that would reduce their costs

86
00:04:57,728 --> 00:05:00,294
or keep costs the same.

87
00:05:00,294 --> 00:05:03,260
And the President made
clear that he feels like

88
00:05:03,261 --> 00:05:04,428
a fix was necessary.

89
00:05:04,428 --> 00:05:06,127
So he looks forward to
the implementation of this,

90
00:05:06,127 --> 00:05:11,461
looks forward to working with
Congress on any sincere effort,

91
00:05:11,461 --> 00:05:13,695
good-faith effort, to make
improvements to the Affordable

92
00:05:13,695 --> 00:05:16,294
Care Act as we implement it.

93
00:05:16,294 --> 00:05:17,794
The Press:
And having announced
the fix yesterday

94
00:05:17,795 --> 00:05:19,761
and having this meeting today,

95
00:05:19,761 --> 00:05:21,895
didn't that put the
cart before the horse?

96
00:05:21,895 --> 00:05:24,628
Mr. Carney:
Well, Jim, I think
it is absolutely the case

97
00:05:24,628 --> 00:05:26,695
that we have been
in consultation with

98
00:05:26,695 --> 00:05:29,760
and have had numerous meetings
with insurance companies

99
00:05:29,761 --> 00:05:32,027
over the course of
the last several years

100
00:05:32,027 --> 00:05:35,161
with the drafting and
passing and implementation

101
00:05:35,161 --> 00:05:36,261
of the Affordable Care Act.

102
00:05:36,261 --> 00:05:37,961
And those
consultations continue.

103
00:05:37,961 --> 00:05:41,461
The President looks forward
to the meeting he's having

104
00:05:41,461 --> 00:05:46,561
later this afternoon
with insurers and will talk

105
00:05:46,561 --> 00:05:49,193
about ways we can work together

106
00:05:49,194 --> 00:05:51,928
to help people enroll
through the marketplace and

107
00:05:51,928 --> 00:05:54,594
efforts we can make to minimize
disruption for consumers

108
00:05:54,594 --> 00:05:57,127
as they transition
to new coverage.

109
00:05:57,127 --> 00:05:59,928
The Press:
And last, given the numbers,

110
00:05:59,928 --> 00:06:03,961
the enrollment numbers, has
the White House given any

111
00:06:03,961 --> 00:06:07,695
consideration or have
you set aside any thought

112
00:06:07,695 --> 00:06:11,928
of extending a waiver period
for the mandatory --

113
00:06:11,928 --> 00:06:17,561
the individual mandate so that
it doesn't kick in on March 31st

114
00:06:17,561 --> 00:06:21,294
as it's scheduled to do?

115
00:06:21,294 --> 00:06:24,127
Mr. Carney:
Jim, as we've said all along,

116
00:06:24,127 --> 00:06:27,695
the individual responsibility
provision is essential to the

117
00:06:27,695 --> 00:06:34,027
Affordable Care Act because it
is what ensures that individuals

118
00:06:34,027 --> 00:06:38,695
with preexisting conditions
cannot be denied insurance.

119
00:06:38,695 --> 00:06:45,928
It allows for the rest of
the Affordable Care Act to be

120
00:06:45,928 --> 00:06:48,261
implemented effectively so that
the benefits that the American

121
00:06:48,261 --> 00:06:50,961
people deserve are
able to be distributed.

122
00:06:50,961 --> 00:06:56,961
So we are obviously working on
a tighter time frame because of

123
00:06:56,961 --> 00:06:59,728
the problems with the website
and the slowness associated

124
00:06:59,728 --> 00:07:05,027
with the rollout and
the enrollment period.

125
00:07:05,027 --> 00:07:07,561
But we do have a six-month
enrollment period;

126
00:07:07,561 --> 00:07:11,161
we are a month-and-a-half
into that.

127
00:07:11,161 --> 00:07:14,494
So we're working assiduously to
make improvements to the website

128
00:07:14,494 --> 00:07:17,227
so that that experience
continues to get better for

129
00:07:17,227 --> 00:07:20,928
consumers, and more and more
Americans are able to enroll.

130
00:07:20,928 --> 00:07:22,695
The Press:
So under no circumstance
would there be

131
00:07:22,695 --> 00:07:24,428
a consideration to extend?

132
00:07:24,428 --> 00:07:26,461
Mr. Carney:
Well, I'm not going to
speculate about the future.

133
00:07:26,461 --> 00:07:30,861
What I'm going to tell you is
that right now we are focused

134
00:07:30,861 --> 00:07:32,127
on making the changes and fixes
necessary to the website,

135
00:07:32,127 --> 00:07:33,528
to improve that
experience for consumers,

136
00:07:33,528 --> 00:07:39,194
and also to work in a variety
of ways to make it easier for

137
00:07:39,194 --> 00:07:40,928
Americans to enroll.

138
00:07:40,928 --> 00:07:45,695
One of the things that remains
true is that there's enormous

139
00:07:45,695 --> 00:07:50,561
interest in the quality,
affordable coverage available

140
00:07:50,561 --> 00:07:52,260
on the marketplaces.

141
00:07:52,261 --> 00:07:59,828
And where we were unsuccessful
is in making that access

142
00:07:59,828 --> 00:08:03,928
to that coverage easy from
day one, October 1st.

143
00:08:03,928 --> 00:08:05,928
And as the President,
I think, made clear

144
00:08:05,928 --> 00:08:09,695
to you here yesterday, he
takes responsibility for that,

145
00:08:09,695 --> 00:08:12,728
we take responsibility for that,
and we're about the business

146
00:08:12,728 --> 00:08:16,027
of making the fixes necessary to
ensure that those benefits

147
00:08:16,027 --> 00:08:19,728
are available to the American
people who so clearly want them.

148
00:08:19,728 --> 00:08:22,061
The Press:
Jay, Henry Chao was
raising red flags

149
00:08:22,061 --> 00:08:23,594
back in July about the website,

150
00:08:23,594 --> 00:08:25,861
saying the plane
could crash on takeoff.

151
00:08:25,861 --> 00:08:30,695
Was the White House aware of
these concerns at the time?

152
00:08:30,695 --> 00:08:32,760
Mr. Carney:
Steve, we've said all along --

153
00:08:32,760 --> 00:08:35,895
I know that there's
these selective leaks going on

154
00:08:35,895 --> 00:08:37,760
out of various House committees,

155
00:08:37,760 --> 00:08:39,493
as they conduct
oversight into this.

156
00:08:39,494 --> 00:08:43,528
But we've said all
along that there were,

157
00:08:43,528 --> 00:08:46,828
in the testing of this,
instances where there were

158
00:08:46,828 --> 00:08:50,895
problems that were identified,
and fixes that were undertaken

159
00:08:50,895 --> 00:08:54,026
to the website.

160
00:08:54,027 --> 00:09:00,161
What we did not expect was that
we would have the size problem

161
00:09:00,161 --> 00:09:01,728
that we had, come October 1st.

162
00:09:01,728 --> 00:09:08,728
And if we had expected that, we
wouldn't have been promoting the

163
00:09:08,728 --> 00:09:10,328
launch of the website
and the run-up to it

164
00:09:10,328 --> 00:09:11,328
in the way that we were.

165
00:09:11,328 --> 00:09:12,694
The President was very
candid about that.

166
00:09:12,695 --> 00:09:18,695
I mean, it does not stand the
test of logic to suggest that we

167
00:09:18,695 --> 00:09:22,027
somehow knew that this website
would perform as poorly

168
00:09:22,027 --> 00:09:26,761
as it did, and a week before,
or four days before,

169
00:09:26,761 --> 00:09:29,261
were encouraging people
to go to it and talking

170
00:09:29,261 --> 00:09:34,227
about how it would be fairly
functional and effective.

171
00:09:34,227 --> 00:09:38,428
So there's no question -- if the
point of these selective leaks

172
00:09:38,428 --> 00:09:42,994
is to get everybody to recognize
that the website performed

173
00:09:42,994 --> 00:09:46,594
terribly onOctober 1st,
I don't think that's a point

174
00:09:46,594 --> 00:09:51,761
that anybody here is denying.

175
00:09:51,761 --> 00:09:57,761
So what we're focused on is
making the fixes necessary

176
00:09:57,761 --> 00:10:02,694
so that the website works in the
way that it was intended to.

177
00:10:02,695 --> 00:10:03,994
The Press:
And a budget question.

178
00:10:03,994 --> 00:10:07,494
You would like to extend
unemployment benefits.

179
00:10:07,494 --> 00:10:09,494
What offsets in the budget
are you willing to consider

180
00:10:09,494 --> 00:10:12,328
to make that happen?

181
00:10:12,328 --> 00:10:13,694
Mr. Carney:
I appreciate the question.

182
00:10:13,695 --> 00:10:17,628
I think that while we have made
substantial progress in bringing

183
00:10:17,628 --> 00:10:20,828
the economy back from the brink,
there is no question

184
00:10:20,828 --> 00:10:24,127
that there are still too many
Americans out of work.

185
00:10:24,127 --> 00:10:26,993
And as a nation, we have always
taken the approach that

186
00:10:26,994 --> 00:10:29,461
in addition to the basic
unemployment benefits available

187
00:10:29,461 --> 00:10:32,728
to those who lose their jobs
and are looking for work,

188
00:10:32,728 --> 00:10:35,460
emergency unemployment
compensation should be available

189
00:10:35,461 --> 00:10:38,161
in times when the labor market
is not at full strength.

190
00:10:38,161 --> 00:10:42,428
And while the labor market
has been improving, it is not,

191
00:10:42,428 --> 00:10:44,461
clearly, at full strength.

192
00:10:44,461 --> 00:10:47,161
At the end of the year,
emergency unemployment

193
00:10:47,161 --> 00:10:50,728
compensation is set to expire,
and that means that 1.3 million

194
00:10:50,728 --> 00:10:55,060
unemployed Americans will lose
unemployment insurance benefits.

195
00:10:55,061 --> 00:10:58,027
These benefits are crucial
for maintaining incomes of the

196
00:10:58,027 --> 00:11:00,695
unemployed and their families,
and have been shown to reduce

197
00:11:00,695 --> 00:11:04,394
poverty and increase the chances
of returning the unemployed

198
00:11:04,394 --> 00:11:06,227
worker to a good job.

199
00:11:06,227 --> 00:11:09,627
Independent studies have also
shown that in terms of economic

200
00:11:09,628 --> 00:11:13,161
impact, these benefits have
a big bang for the buck --

201
00:11:13,161 --> 00:11:14,328
because as you know,

202
00:11:14,328 --> 00:11:16,560
and anybody who covers
these kinds of issues knows,

203
00:11:16,561 --> 00:11:23,161
those benefits flow right
back into the economy because,

204
00:11:23,161 --> 00:11:25,661
almost by definition, those
who are strapped and need

205
00:11:25,661 --> 00:11:28,361
unemployment benefits are
using the benefits that they've

206
00:11:28,361 --> 00:11:31,661
received right away, and
spending them and injecting

207
00:11:31,661 --> 00:11:36,060
that money into the economy,
which helps spur growth

208
00:11:36,061 --> 00:11:37,494
and create jobs.

209
00:11:37,494 --> 00:11:39,895
So as Gene Sperling mentioned
yesterday -- I think that's why

210
00:11:39,895 --> 00:11:41,661
I'm getting the question you
mentioned yesterday -- that the

211
00:11:41,661 --> 00:11:43,560
President believes we should
extend this provision through

212
00:11:43,561 --> 00:11:46,461
the end of 2014, and we are
confident that Congress

213
00:11:46,461 --> 00:11:48,561
will join us in this effort.

214
00:11:48,561 --> 00:11:50,328
And we're confident of that,
because if you look back,

215
00:11:50,328 --> 00:11:52,761
unemployment compensation,
emergency unemployment

216
00:11:52,761 --> 00:11:55,026
compensation, has always been
extended when the unemployment

217
00:11:55,027 --> 00:11:56,761
rate is near current levels.

218
00:11:56,761 --> 00:11:59,394
That was the case under
President George W. Bush

219
00:11:59,394 --> 00:12:02,661
and it's been the case in
the aftermath or in the recovery

220
00:12:02,661 --> 00:12:04,428
from the Great Recession.

221
00:12:04,428 --> 00:12:06,594
So we'll work with Congress
for how to make that happen.

222
00:12:06,594 --> 00:12:09,428
But we're confident that
Congress will join us

223
00:12:09,428 --> 00:12:11,227
in extending these benefits.

224
00:12:11,227 --> 00:12:13,593
Let me move around.

225
00:12:13,594 --> 00:12:15,594
Victoria.

226
00:12:18,795 --> 00:12:20,227
The Press:
The question is,
the whistleblowers

227
00:12:20,227 --> 00:12:23,728
yesterday at a committee
hearing were talking

228
00:12:23,728 --> 00:12:29,661
about the Secret
Service's apparent sexcapades

229
00:12:29,661 --> 00:12:34,828
in 17 countries
and visiting bordellos,

230
00:12:34,828 --> 00:12:38,328
hiring prostitutes,
having one-night stands

231
00:12:38,328 --> 00:12:41,194
as well as
longer-term relationships

232
00:12:41,194 --> 00:12:45,694
with foreign nationals
who have not been cleared.

233
00:12:45,695 --> 00:12:48,895
Given this level
of what seems to be

234
00:12:48,895 --> 00:12:51,394
inappropriate sexual
activity going on

235
00:12:51,394 --> 00:12:53,294
with the Secret Service,

236
00:12:53,294 --> 00:12:56,361
what is the President's level
of confidence in them

237
00:12:56,361 --> 00:12:58,628
at this point?

238
00:12:58,628 --> 00:13:01,594
Mr. Carney:
The President believes
deeply that the vast majority

239
00:13:01,594 --> 00:13:06,728
of the men and women who
work for the U.S. Secret Service

240
00:13:06,728 --> 00:13:09,560
exemplify the highest
standards of service,

241
00:13:09,561 --> 00:13:12,361
and that they work
day and night professionally

242
00:13:12,361 --> 00:13:17,127
to protect the President
and presidents before him,

243
00:13:17,127 --> 00:13:18,627
and presidents --
and they will after him,

244
00:13:18,628 --> 00:13:20,994
as well his family and
presidential families

245
00:13:20,994 --> 00:13:22,994
as well as other protectees.

246
00:13:25,594 --> 00:13:29,428
Issues that have arisen,
including the visit to Colombia

247
00:13:29,428 --> 00:13:31,961
and other issues that arise,
the President is confident

248
00:13:31,961 --> 00:13:34,994
that they will
be fully investigated

249
00:13:34,994 --> 00:13:38,328
and that action where
appropriate will be taken.

250
00:13:38,328 --> 00:13:40,627
And he believes
that the leadership

251
00:13:40,628 --> 00:13:44,594
at the Secret Service,
including the new director,

252
00:13:44,594 --> 00:13:48,561
will address matters as
they arise appropriately.

253
00:13:48,561 --> 00:13:52,361
But it is important to note
that the President believes very

254
00:13:52,361 --> 00:13:56,093
strongly that these men and
women are professionals

255
00:13:56,094 --> 00:14:00,828
and that they put their lives
on the line to protect

256
00:14:00,828 --> 00:14:02,394
the Commander-in-Chief,
protect the President,

257
00:14:02,394 --> 00:14:04,561
protect his or her family.

258
00:14:04,561 --> 00:14:06,861
And that's a very
weighty responsibility,

259
00:14:06,861 --> 00:14:08,795
and he greatly appreciates it.

260
00:14:08,795 --> 00:14:12,127
The Press: Does he think that
the new director has taken swift

261
00:14:12,127 --> 00:14:17,227
action to act on the kinds of
allegations that have been

262
00:14:17,227 --> 00:14:19,994
in place before she came in?

263
00:14:19,994 --> 00:14:21,728
Mr. Carney:
I know that the President
believes very strongly

264
00:14:21,728 --> 00:14:24,694
that Director Pierson is the
right person for the job

265
00:14:24,695 --> 00:14:28,494
and has great confidence
in her leadership.

266
00:14:28,494 --> 00:14:34,528
I don't have a specific reaction
to any investigation that might

267
00:14:34,528 --> 00:14:38,628
be ongoing or accusations that
might be leveled currently,

268
00:14:38,628 --> 00:14:41,895
except to say that the President
has absolute confidence

269
00:14:41,895 --> 00:14:45,361
in the leadership
at the Secret Service.

270
00:14:45,361 --> 00:14:47,928
The Press:
Question about
this insurance fix

271
00:14:47,928 --> 00:14:50,361
the President
announced yesterday.

272
00:14:50,361 --> 00:14:52,194
It does introduce a little
bit of uncertainty here.

273
00:14:52,194 --> 00:14:55,461
So what advice would
you guys give, if any,

274
00:14:55,461 --> 00:14:58,728
to these people who have gotten
these cancellation letters?

275
00:14:58,728 --> 00:15:00,895
Do they call their
insurance company back?

276
00:15:00,895 --> 00:15:02,761
Do they call the state
insurance commissioners?

277
00:15:02,761 --> 00:15:04,593
Do they keep trying to log on?

278
00:15:04,594 --> 00:15:06,661
What should they do
sort of in the meantime,

279
00:15:06,661 --> 00:15:11,127
trying to figure out whether
their companies are going to

280
00:15:11,127 --> 00:15:12,428
offer this to them?

281
00:15:12,428 --> 00:15:14,027
Mr. Carney:
Well, a couple of things.

282
00:15:14,027 --> 00:15:19,194
One, what the President did and
can do -- and the Secretary has

283
00:15:19,194 --> 00:15:23,093
the authority to do -- is
essentially waive the provision

284
00:15:23,094 --> 00:15:29,094
within the Affordable Care Act
that would make plans beyond the

285
00:15:31,328 --> 00:15:34,728
current early enrollment
phase become compliant

286
00:15:34,728 --> 00:15:36,761
with minimum standards.

287
00:15:36,761 --> 00:15:40,795
And, obviously, because we have
a system where state insurance

288
00:15:40,795 --> 00:15:44,627
commissioners have great
authority over the markets in

289
00:15:44,628 --> 00:15:46,127
their states, this is something
that insurance companies and

290
00:15:46,127 --> 00:15:52,928
insurance commissioners will
make the ultimate decision on,

291
00:15:52,928 --> 00:15:58,127
in terms of offering to extend
the renewal period or to offer

292
00:15:58,127 --> 00:16:02,828
to renew policies in the
individual market where

293
00:16:02,828 --> 00:16:04,994
cancellation notices
might have gone out.

294
00:16:04,994 --> 00:16:08,861
What is also required in the
fix that the President announced

295
00:16:08,861 --> 00:16:12,593
yesterday is that if
that offer is made,

296
00:16:12,594 --> 00:16:20,227
insurers need to make clear to
their customers what benefits

297
00:16:20,227 --> 00:16:22,593
are available to them or the
fact that benefits are available

298
00:16:22,594 --> 00:16:26,628
to them through the marketplace,
and also what benefits that

299
00:16:26,628 --> 00:16:30,461
might come to them under the
new standards are missing

300
00:16:30,461 --> 00:16:31,594
in the plans that they
might be renewing.

301
00:16:31,594 --> 00:16:35,828
So it's basically eyes
wide open is the way --

302
00:16:35,828 --> 00:16:39,328
so that the consumers
have the most amount

303
00:16:39,328 --> 00:16:42,928
of information possible
as they make this decision.

304
00:16:42,928 --> 00:16:46,461
And the whole goal here is to
address the problem that has

305
00:16:46,461 --> 00:16:53,494
arisen and to give consumers
more options as they begin

306
00:16:53,494 --> 00:17:00,328
this transition into an
insurance marketplace where,

307
00:17:00,328 --> 00:17:04,261
over the long run,
costs will be contained,

308
00:17:04,261 --> 00:17:06,493
minimum benefits
will be offered,

309
00:17:06,493 --> 00:17:11,461
and you won't be in a situation
which has existed up to this

310
00:17:11,461 --> 00:17:13,928
very moment where if you're in
the individual market you tend

311
00:17:13,928 --> 00:17:17,528
to be doing okay as
long as you're healthy --

312
00:17:17,528 --> 00:17:20,528
because, A, you'll be offered
insurance if you're healthy

313
00:17:20,528 --> 00:17:22,661
and you might be thrown
off insurance once you get sick;

314
00:17:22,661 --> 00:17:25,361
but you'll also,
in this current environment,

315
00:17:25,361 --> 00:17:28,461
you might pay more
if you're a woman,

316
00:17:28,461 --> 00:17:31,961
you might pay double, even,
for the same coverage,

317
00:17:31,961 --> 00:17:36,594
and you might find
that you do not have caps

318
00:17:36,594 --> 00:17:38,227
on out-of-pocket expenses,

319
00:17:38,227 --> 00:17:42,428
so you could be confronted
with a $40,000 or $50,000 bill

320
00:17:42,428 --> 00:17:43,728
that's not covered.

321
00:17:43,728 --> 00:17:45,061
These are the kinds of things
that the Affordable Care Act

322
00:17:45,061 --> 00:17:47,828
was designed to fix.

323
00:17:47,828 --> 00:17:53,194
And what the President announced
yesterday was a solution

324
00:17:53,194 --> 00:17:56,494
to a problem that helps
the transition into those

325
00:17:56,494 --> 00:17:59,360
marketplaces occur
more smoothly.

326
00:17:59,361 --> 00:18:01,194
The Press:
But it sounds like people
who are affected here

327
00:18:01,194 --> 00:18:02,394
won't necessarily
know for some time

328
00:18:02,394 --> 00:18:04,695
whether it's going
to be fixed for them.

329
00:18:04,695 --> 00:18:07,860
Mr. Carney:
We believe that insurers
certainly can generate letters,

330
00:18:07,861 --> 00:18:10,227
just like they did already,

331
00:18:10,227 --> 00:18:13,994
to their customers that advise
them of this new opportunity

332
00:18:13,994 --> 00:18:17,994
if they choose to make that
opportunity available to them,

333
00:18:17,994 --> 00:18:20,293
and if there is time to do that.

334
00:18:20,294 --> 00:18:23,594
So we're obviously going to
be working with insurers

335
00:18:23,594 --> 00:18:25,828
and working with states
on this matter.

336
00:18:25,828 --> 00:18:29,860
But we believe there is time,
and we believe it's a solution

337
00:18:29,861 --> 00:18:32,928
to a problem that
has clearly arisen

338
00:18:32,928 --> 00:18:35,161
that the President
wants addressed.

339
00:18:35,161 --> 00:18:36,394
The Press:
One more larger one.

340
00:18:36,394 --> 00:18:38,394
We know that the Affordable Care
Act has been under fire

341
00:18:38,394 --> 00:18:40,361
from the very beginning --
the problems with the website,

342
00:18:40,361 --> 00:18:43,027
this issue of people getting
these cancellation letters that

343
00:18:43,027 --> 00:18:44,628
have only made matters worse.

344
00:18:44,628 --> 00:18:47,194
So the question is, what do
you say to the folks who are

345
00:18:47,194 --> 00:18:49,860
wondering if the President
is going to be able to get

346
00:18:49,861 --> 00:18:52,461
back on track and be able to
have a productive second term,

347
00:18:52,461 --> 00:18:54,261
get his agenda
through legislatively?

348
00:18:54,261 --> 00:18:56,061
So how's he going to do that?

349
00:18:56,061 --> 00:18:58,593
What do you say to those folks?

350
00:18:58,594 --> 00:19:01,928
Mr. Carney:
Look, I think he's going
to do it by waking up every day

351
00:19:01,928 --> 00:19:03,494
and focusing on
addressing the concerns

352
00:19:03,494 --> 00:19:04,794
that the American people have,

353
00:19:04,795 --> 00:19:07,094
that they want their elected
leaders here in Washington

354
00:19:07,094 --> 00:19:08,428
to focus on.

355
00:19:08,428 --> 00:19:12,661
And that means, in this case,
making the Affordable Care Act

356
00:19:12,661 --> 00:19:13,861
deliver on its promise,

357
00:19:13,861 --> 00:19:17,294
deliver the benefits
that it will provide,

358
00:19:17,294 --> 00:19:20,027
when implemented, to millions
and millions of Americans.

359
00:19:20,027 --> 00:19:25,061
There's no question that this
has been a problem in its

360
00:19:25,061 --> 00:19:27,628
rolling out of the policy,
as the President I think

361
00:19:27,628 --> 00:19:29,928
pretty amply
acknowledged yesterday.

362
00:19:29,928 --> 00:19:33,294
But this is an issue that
goes to whether or not we are

363
00:19:33,294 --> 00:19:36,227
successfully delivering
benefits to the American people,

364
00:19:36,227 --> 00:19:43,828
delivering on a policy that
promises to continue to rein in

365
00:19:43,828 --> 00:19:46,728
health care spending
over the long term,

366
00:19:46,728 --> 00:19:51,494
that provides minimum benefits
to Americans that prohibits

367
00:19:51,494 --> 00:19:53,961
insurance companies from denying
you coverage because you have

368
00:19:53,961 --> 00:19:56,994
even a minor
preexisting condition.

369
00:19:56,994 --> 00:20:02,328
This is obviously a challenge
and we're facing the challenge

370
00:20:02,328 --> 00:20:06,261
and we're up to the challenge,
but when it comes to what it

371
00:20:06,261 --> 00:20:09,994
means more broadly, I think it
just goes right to the heart

372
00:20:09,994 --> 00:20:11,994
of the fact that the American
people want their elected

373
00:20:11,994 --> 00:20:13,695
leaders working for them.

374
00:20:13,695 --> 00:20:16,494
And this President wakes up
every day focused on what he can

375
00:20:16,494 --> 00:20:19,528
do to work
for the hardworking Americans

376
00:20:19,528 --> 00:20:21,127
and make their lives a
little easier, a little better,

377
00:20:21,127 --> 00:20:22,961
and a little more secure.

378
00:20:22,961 --> 00:20:25,328
That's what he's going to do
every day that he is in office.

379
00:20:25,328 --> 00:20:27,293
Jon.

380
00:20:27,294 --> 00:20:28,328
The Press:
Jay, we've already heard

381
00:20:28,328 --> 00:20:30,094
from three state
insurance commissioners

382
00:20:30,094 --> 00:20:33,194
that say the President's
plan simply is not workable.

383
00:20:33,194 --> 00:20:35,994
I mean, what is that going to
do for people in those states?

384
00:20:35,994 --> 00:20:37,895
Washington State, Arkansas,
Vermont --

385
00:20:37,895 --> 00:20:39,061
all those
insurance commissioners

386
00:20:39,061 --> 00:20:40,695
said this just won't work,

387
00:20:40,695 --> 00:20:42,194
they're not going to do it.

388
00:20:42,194 --> 00:20:44,795
Mr. Carney:
Well, Jon, I can also
cite Kentucky, Florida,

389
00:20:44,795 --> 00:20:45,928
and California,

390
00:20:45,928 --> 00:20:47,695
I think collectively
even a higher population --

391
00:20:47,695 --> 00:20:50,561
states that have
said they will --

392
00:20:50,561 --> 00:20:52,727
they've announced that
they will allow insurers

393
00:20:52,728 --> 00:20:54,294
to renew these plans
under this policy.

394
00:20:54,294 --> 00:20:55,895
And the fact is --

395
00:20:55,895 --> 00:20:58,860
The Press:
So states that do it are okay?

396
00:20:58,861 --> 00:21:01,628
States that don't,
those people are out of luck?

397
00:21:01,628 --> 00:21:03,360
Mr. Carney:
Well, Jon, what
you are identifying

398
00:21:03,361 --> 00:21:07,661
is the insurance world that we
live in, in the United States,

399
00:21:07,661 --> 00:21:09,227
where state insurance
commissions obviously have

400
00:21:09,227 --> 00:21:12,194
a great deal of authority about
how insurance is marketed

401
00:21:12,194 --> 00:21:13,528
and sold in their state.

402
00:21:13,528 --> 00:21:14,994
So we are going
to work with states.

403
00:21:14,994 --> 00:21:18,194
It has always been
the case, even up to --

404
00:21:18,194 --> 00:21:20,728
as I noted earlier
and this is rarely

405
00:21:20,728 --> 00:21:22,061
acknowledged or discussed --

406
00:21:22,061 --> 00:21:24,360
but that the Affordable Care
Act has within it the provision

407
00:21:24,361 --> 00:21:26,994
that allows insurance
companies in those states

408
00:21:26,994 --> 00:21:28,994
where the state
insurance commissions allow it,

409
00:21:31,227 --> 00:21:33,961
to renew existing
policies already.

410
00:21:33,961 --> 00:21:37,494
And that was true prior to
the problems that we've seen

411
00:21:37,494 --> 00:21:39,895
in the last several weeks
with cancellation notices.

412
00:21:39,895 --> 00:21:43,194
What the President's fix does
is extend that renewal period.

413
00:21:43,194 --> 00:21:44,461
But it has always
been the case --

414
00:21:44,461 --> 00:21:46,428
because, as the President
said yesterday, we were trying

415
00:21:46,428 --> 00:21:49,294
to build on the existing
system to cause the least amount

416
00:21:49,294 --> 00:21:51,461
of disruption --

417
00:21:51,461 --> 00:21:55,261
state insurance commissions have
authority in their states

418
00:21:55,261 --> 00:21:58,226
to govern how policies
are marketed and sold,

419
00:21:58,227 --> 00:22:00,394
and to set standards
for those policies.

420
00:22:00,394 --> 00:22:02,394
The Press:
So what do you
say to Bill Fullner,

421
00:22:02,394 --> 00:22:05,027
he's the guy in
Washington State, cancelled --

422
00:22:05,027 --> 00:22:07,027
his insurance
policy was cancelled,

423
00:22:08,628 --> 00:22:10,360
he was out of luck,
took great hope

424
00:22:10,361 --> 00:22:11,761
in what the President had said,

425
00:22:11,761 --> 00:22:13,161
and then a few hours
later finds out

426
00:22:13,161 --> 00:22:14,795
that it's not going
to apply to him

427
00:22:14,795 --> 00:22:16,094
because
his insurance commissioner

428
00:22:16,094 --> 00:22:17,961
says the plan is not workable?

429
00:22:17,961 --> 00:22:20,394
Mr. Carney:
Jon, I would say that what
the President said yesterday

430
00:22:20,394 --> 00:22:22,428
is that he wants to continue
to work with lawmakers

431
00:22:22,428 --> 00:22:26,161
of both parties who are engaged
in a good-faith effort to make

432
00:22:26,161 --> 00:22:28,161
improvements to the
Affordable Care Act

433
00:22:28,161 --> 00:22:33,261
and even to
address this particular issue.

434
00:22:33,261 --> 00:22:34,695
The fact of --

435
00:22:34,695 --> 00:22:36,093
The Press:
But he's losing his insurance
at the end of the year

436
00:22:36,094 --> 00:22:39,861
and is faced now with paying
a premium twice as expensive.

437
00:22:39,861 --> 00:22:41,828
Mr. Carney:
Well, as has always
been the case,

438
00:22:41,828 --> 00:22:44,494
I don't know any -- when you
throw out an individual to me,

439
00:22:44,494 --> 00:22:46,961
I can't -- I don't
have a capacity --

440
00:22:46,961 --> 00:22:48,328
The Press:
This would apply
to anybody who had

441
00:22:48,328 --> 00:22:49,761
a cancellation notice
in Washington State.

442
00:22:49,761 --> 00:22:50,928
Mr. Carney:
Well, no, it wouldn't
apply -- what you just cited

443
00:22:50,928 --> 00:22:52,394
about the premium wouldn't
necessarily apply

444
00:22:52,394 --> 00:22:53,628
to every individual.

445
00:22:53,628 --> 00:22:56,127
What the fact
of the matter is --

446
00:22:56,127 --> 00:22:58,394
and these cases
aren't usually brought

447
00:22:58,394 --> 00:23:00,695
into the briefing
room here -- that more than half

448
00:23:00,695 --> 00:23:02,226
of people who get --

449
00:23:02,227 --> 00:23:03,294
The Press:
These are real people.

450
00:23:03,294 --> 00:23:04,294
I mean, it's --

451
00:23:04,294 --> 00:23:05,528
Mr. Carney:
Oh, absolutely.

452
00:23:05,528 --> 00:23:07,828
And I think you heard the
President here at length talk

453
00:23:07,828 --> 00:23:09,461
about his concern
for those people,

454
00:23:09,461 --> 00:23:11,061
and that's why he's
making this fix,

455
00:23:11,061 --> 00:23:14,428
and why he is going to work
every day to do what he can and

456
00:23:14,428 --> 00:23:18,061
then to work with Congress so
that they can do what they can

457
00:23:18,061 --> 00:23:21,860
to make the Affordable Care Act
implementation go more smoothly

458
00:23:21,861 --> 00:23:25,394
and work effectively
for the American people.

459
00:23:25,394 --> 00:23:31,728
What is absolutely
the case, Jon,

460
00:23:31,728 --> 00:23:34,194
is that the Affordable
Care Act, when implemented,

461
00:23:34,194 --> 00:23:38,561
will allow Americans across the
country, millions of Americans,

462
00:23:38,561 --> 00:23:41,860
to purchase affordable, quality
health insurance for many of

463
00:23:41,861 --> 00:23:45,027
whom that was something that
was not possible before.

464
00:23:45,027 --> 00:23:48,261
And even as we deal with the
problems that are arising

465
00:23:48,261 --> 00:23:49,895
with the implementation of
the Affordable Care Act,

466
00:23:49,895 --> 00:23:52,428
it is absolutely
essential that we remember

467
00:23:52,428 --> 00:23:53,895
what the alternative here is.

468
00:23:53,895 --> 00:23:56,161
And the President talked about
this a little bit yesterday.

469
00:23:56,161 --> 00:24:00,328
When critics point out --
and they justifiably point out

470
00:24:00,328 --> 00:24:03,661
the problems with
implementation --

471
00:24:03,661 --> 00:24:04,994
and then they say,
well, we should then

472
00:24:04,994 --> 00:24:06,593
do away with Obamacare,

473
00:24:06,594 --> 00:24:08,027
we should do away with
the Affordable Care Act,

474
00:24:08,027 --> 00:24:11,027
they are saying
that they want to go back

475
00:24:11,027 --> 00:24:13,628
to the status quo ante --

476
00:24:13,628 --> 00:24:16,761
which in this market,
I don't know about this

477
00:24:16,761 --> 00:24:19,561
individual, but anybody
in the individual market

478
00:24:19,561 --> 00:24:24,226
was subjected
to extreme increases annually

479
00:24:24,227 --> 00:24:25,494
in their premiums,

480
00:24:25,494 --> 00:24:30,961
to a situation where insurance
companies regularly either

481
00:24:30,961 --> 00:24:34,294
dropped or abruptly changed the
policies that were offered to

482
00:24:34,294 --> 00:24:38,127
them, downgrading the coverage
that was offered to individuals.

483
00:24:38,127 --> 00:24:40,127
And that's why --
and to some degree,

484
00:24:42,428 --> 00:24:43,861
one of the reasons why we're
seeing this problem is

485
00:24:43,861 --> 00:24:49,027
because there has been and is
so much churn in that market --

486
00:24:49,027 --> 00:24:52,061
so that the number of people
who got cancellation notices

487
00:24:52,061 --> 00:24:53,293
was as high as it was

488
00:24:53,294 --> 00:24:56,494
because so few policies
are maintained for very long,

489
00:24:56,494 --> 00:24:58,794
because individuals come
in and out of that market

490
00:24:58,795 --> 00:25:00,728
because it's the
worst place to be.

491
00:25:00,728 --> 00:25:02,594
It has traditionally been
the worst place to be.

492
00:25:02,594 --> 00:25:05,928
So if you're somebody
who buys an individual policy

493
00:25:05,928 --> 00:25:08,428
because you have to,
because you're in between jobs,

494
00:25:08,428 --> 00:25:10,361
or you have a job where your
employer doesn't offer it,

495
00:25:10,361 --> 00:25:12,928
and then you get a job
with an employer who does,

496
00:25:12,928 --> 00:25:15,061
you're going to go with the
employer-provided insurance

497
00:25:15,061 --> 00:25:21,928
because the benefits currently
available on the insurance

498
00:25:21,928 --> 00:25:27,227
market are often substandard,
and that is something

499
00:25:27,227 --> 00:25:29,194
that the Affordable Care Act
was specifically designed

500
00:25:29,194 --> 00:25:30,194
to address.

501
00:25:30,194 --> 00:25:31,394
The Press:
So one more.

502
00:25:31,394 --> 00:25:32,561
Can I just ask you --
the President said yesterday,

503
00:25:32,561 --> 00:25:35,127
"I was not informed directly
that the website would

504
00:25:35,127 --> 00:25:38,293
not be working the way it
was supposed to."

505
00:25:38,294 --> 00:25:41,328
I mean, we've heard the latest
is the project manager

506
00:25:41,328 --> 00:25:43,428
on healthcare.gov
warned --

507
00:25:43,428 --> 00:25:46,361
was worried this thing
could crash at takeoff.

508
00:25:46,361 --> 00:25:48,594
I'm just wondering, did
the President at any point

509
00:25:48,594 --> 00:25:51,528
ask the question,
has this thing been tested;

510
00:25:51,528 --> 00:25:52,528
are we ready to go?

511
00:25:52,528 --> 00:25:53,795
And what was the answer he got?

512
00:25:53,795 --> 00:25:55,261
Mr. Carney:
Jon, the President
was regularly briefed

513
00:25:55,261 --> 00:25:58,194
on the implementation
of the Affordable Care Act

514
00:25:58,194 --> 00:25:59,328
in the run-up to the launch.

515
00:25:59,328 --> 00:26:04,161
What he and others have
said is that at no time

516
00:26:04,161 --> 00:26:06,761
did we anticipate that
the problems that we ended up

517
00:26:06,761 --> 00:26:10,561
seeing on
October 1st would occur.

518
00:26:10,561 --> 00:26:11,561
And if we had --

519
00:26:11,561 --> 00:26:12,895
The Press:
I get it.

520
00:26:12,895 --> 00:26:16,360
But the people working on this
knew that there were problems

521
00:26:16,361 --> 00:26:18,361
and were worried
this could happen.

522
00:26:18,361 --> 00:26:20,127
Mr. Carney:
No, I get it.

523
00:26:20,127 --> 00:26:21,828
The Press:
And I'm just asking,

524
00:26:21,828 --> 00:26:27,628
did the President ask the
question, has it been tested?

525
00:26:27,628 --> 00:26:28,695
Mr. Carney:
Absolutely, the President
constantly asked

526
00:26:28,695 --> 00:26:30,628
where we were and what
was the progress on --

527
00:26:30,628 --> 00:26:32,328
The Press:
So who misled him if they
knew of these problems

528
00:26:32,328 --> 00:26:33,828
and didn't disclose it to him?

529
00:26:33,828 --> 00:26:35,194
Mr. Carney:
Again, there's a jump
in your logic there.

530
00:26:35,194 --> 00:26:37,194
The fact is, as we acknowledged
and have said since October 1st

531
00:26:37,194 --> 00:26:38,360
and even before that,
we anticipated glitches.

532
00:26:38,361 --> 00:26:39,728
We were told there
might be some problems.

533
00:26:39,728 --> 00:26:41,728
And as is the case
when any site --

534
00:26:41,728 --> 00:26:42,728
The Press:
The project manager
was worried

535
00:26:42,728 --> 00:26:43,928
this could crash at takeoff.

536
00:26:43,928 --> 00:26:45,061
Mr. Carney:
Could I finish?

537
00:26:45,061 --> 00:26:46,261
Hey, Jon, I know we're
creating an exchange here.

538
00:26:46,261 --> 00:26:47,795
But if I could just exchange
-- finish for one second,

539
00:26:47,795 --> 00:26:50,961
that the fact is when a site
like this is being developed

540
00:26:50,961 --> 00:26:52,861
and it's tested
and problems arise,

541
00:26:52,861 --> 00:26:56,094
checklists are developed
and problems are addressed.

542
00:26:56,094 --> 00:27:01,027
And we believed that the
problems were being addressed,

543
00:27:01,027 --> 00:27:03,895
and that while there
would be some glitches

544
00:27:03,895 --> 00:27:06,293
upon launch on October 1st,

545
00:27:06,294 --> 00:27:09,328
that, obviously, we never
anticipated that we would have

546
00:27:09,328 --> 00:27:11,795
the kind of severe
problems that we had --

547
00:27:11,795 --> 00:27:15,194
that the site would
function as poorly as it did.

548
00:27:15,194 --> 00:27:20,828
And I really ask for everyone to
take a step back and look

549
00:27:20,828 --> 00:27:26,695
at the logic here of suggesting
that somehow we or anybody

550
00:27:26,695 --> 00:27:29,194
responsible for it knew that
we would have the problems

551
00:27:29,194 --> 00:27:30,961
that we had on October 1st.

552
00:27:30,961 --> 00:27:32,328
The Press:
But the project
manager is saying

553
00:27:32,328 --> 00:27:34,561
that he was worried that
it could crash on takeoff.

554
00:27:34,561 --> 00:27:36,727
Mr. Carney:
I addressed this
when Steve asked it

555
00:27:36,728 --> 00:27:38,227
already a few minutes ago.

556
00:27:38,227 --> 00:27:39,428
The Press:
This isn't about glitches,
this is crashing.

557
00:27:39,428 --> 00:27:41,961
I mean, this is --
he seemed worried

558
00:27:41,961 --> 00:27:43,294
about something
bigger than that.

559
00:27:43,294 --> 00:27:44,961
Mr. Carney:
Again, I think that --
I think it would be --

560
00:27:44,961 --> 00:27:47,961
I would advise everyone who is
susceptible to taking these

561
00:27:47,961 --> 00:27:51,061
partial transcript leaks from
committee staff -- and I think

562
00:27:51,061 --> 00:27:54,928
again and again we've seen when
the full story is revealed that

563
00:27:54,928 --> 00:27:57,161
committee staff hasn't really
been completely transparent

564
00:27:57,161 --> 00:28:00,194
with you and others --
that it would be wise

565
00:28:00,194 --> 00:28:02,561
to look at the whole story.

566
00:28:02,561 --> 00:28:05,994
And that would be the
case in this instance,

567
00:28:05,994 --> 00:28:09,761
and I think almost invariably
the case when committee staff

568
00:28:09,761 --> 00:28:12,561
is trying to make
a political point.

569
00:28:12,561 --> 00:28:14,194
There is no question
that this goes to --

570
00:28:14,194 --> 00:28:18,961
the fundamental issue is:

571
00:28:18,961 --> 00:28:21,094
Has the website
functioned effectively?

572
00:28:21,094 --> 00:28:22,628
Absolutely not.

573
00:28:22,628 --> 00:28:26,061
And nobody is more aware
of that or frustrated by it

574
00:28:26,061 --> 00:28:28,394
than the President
and the people who work for him

575
00:28:28,394 --> 00:28:29,828
on this issue.

576
00:28:29,828 --> 00:28:32,795
That's why we're focused
on fixing it and not focused

577
00:28:32,795 --> 00:28:36,494
on dribbling out information
to score political points.

578
00:28:36,494 --> 00:28:37,928
We're focused on
getting it right,

579
00:28:37,928 --> 00:28:40,461
because this is about a policy
that will deliver benefits

580
00:28:40,461 --> 00:28:42,494
to millions of American
people who deserve them

581
00:28:42,494 --> 00:28:43,494
and have earned them.

582
00:28:43,494 --> 00:28:44,994
Jon-Christopher.

583
00:28:44,994 --> 00:28:47,261
The Press:
As you know,
Senator Lindsey Graham

584
00:28:47,261 --> 00:28:49,661
has threatened to put a hold
on all confirmations presented

585
00:28:49,661 --> 00:28:52,361
by the President,
including that of Janet Yellen,

586
00:28:52,361 --> 00:28:54,127
the new Chair of
the Federal Reserve,

587
00:28:54,127 --> 00:28:58,428
until he receives information
he's requested on Benghazi.

588
00:28:58,428 --> 00:29:02,294
What steps is the administration
taking to resolve this issue

589
00:29:02,294 --> 00:29:04,528
and ensure the confirmation
of Ms. Yellen,

590
00:29:04,528 --> 00:29:07,061
and continuity at
the Federal Reserve,

591
00:29:07,061 --> 00:29:10,026
which in fact could
affect world markets?

592
00:29:10,027 --> 00:29:11,828
Mr. Carney:
We're very confident
that Janet Yellen

593
00:29:11,828 --> 00:29:15,828
is absolutely the right
candidate for the job.

594
00:29:15,828 --> 00:29:20,061
Her hearing yesterday,
we felt, went very well,

595
00:29:20,061 --> 00:29:24,727
and it offered an opportunity
for her to take questions

596
00:29:24,728 --> 00:29:26,661
from committee members
of both parties.

597
00:29:26,661 --> 00:29:31,994
When it comes to Benghazi,
we have -- and I will spare

598
00:29:31,994 --> 00:29:35,994
everyone here the recitation of
the amount of cooperation

599
00:29:35,994 --> 00:29:40,360
that we have shown oversight
committees with reams of

600
00:29:40,361 --> 00:29:42,828
documents and
numerous interviews

601
00:29:42,828 --> 00:29:46,261
and testimony in hearings.

602
00:29:46,261 --> 00:29:48,328
And that continues.

603
00:29:48,328 --> 00:29:52,895
So we are working with Congress
on this as we always do.

604
00:29:52,895 --> 00:29:56,895
And we absolutely believe that
the President's highly qualified

605
00:29:56,895 --> 00:30:02,293
nominees should not be held,
they should be given the votes

606
00:30:02,294 --> 00:30:03,294
that they deserve.

607
00:30:03,294 --> 00:30:06,761
And we look forward
to their confirmation.

608
00:30:06,761 --> 00:30:08,226
Cheryl.

609
00:30:08,227 --> 00:30:11,661
The Press:
Yes, do you have either
a firm number or a pretty good

610
00:30:11,661 --> 00:30:14,428
estimate of the number of
cancellation letters that have

611
00:30:14,428 --> 00:30:16,561
actually gone out nationwide?

612
00:30:16,561 --> 00:30:20,226
Mr. Carney:
I meant to mention it --
I think it's this afternoon --

613
00:30:20,227 --> 00:30:22,061
CMS is doing
its regular briefing,

614
00:30:22,061 --> 00:30:26,127
and I would encourage you to
participate in those briefings.

615
00:30:26,127 --> 00:30:27,895
They're going to have
more detailed information.

616
00:30:27,895 --> 00:30:29,661
I don't know if they
have a number on that.

617
00:30:29,661 --> 00:30:32,728
The reports in the
press vary widely.

618
00:30:32,728 --> 00:30:35,261
I think that one --
I think it's important to note

619
00:30:35,261 --> 00:30:39,728
that when you look at the number
of people who, for example,

620
00:30:39,728 --> 00:30:42,928
get benefits in
the marketplaces,

621
00:30:42,928 --> 00:30:44,895
tax credits and the
like, it's 17 million.

622
00:30:44,895 --> 00:30:46,394
And I think the largest
number I've seen,

623
00:30:46,394 --> 00:30:49,394
in terms of cancellation
letters, is 3.5 million,

624
00:30:49,394 --> 00:30:50,728
and I don't even know
if that's accurate.

625
00:30:50,728 --> 00:30:52,428
So I would refer you to CMS.

626
00:30:52,428 --> 00:30:54,428
Major.

627
00:30:55,528 --> 00:30:59,661
The Press:
You implied a second ago
that there's a fuller story

628
00:30:59,661 --> 00:31:02,227
about Mr. Chao's testimony,

629
00:31:02,227 --> 00:31:03,294
that Jonathan referred to.

630
00:31:03,294 --> 00:31:04,661
Would you like to try to --

631
00:31:04,661 --> 00:31:06,361
Mr. Carney:
No, I'm simply saying
that it has been the case

632
00:31:06,361 --> 00:31:09,227
again and again and again,
with certain committees,

633
00:31:09,227 --> 00:31:13,861
that partial information is
produced or leaked to reporters

634
00:31:13,861 --> 00:31:18,594
or put out in press releases
that, upon further scrutiny,

635
00:31:18,594 --> 00:31:24,594
is not quite what
they say it was.

636
00:31:26,628 --> 00:31:27,727
What I --

637
00:31:27,728 --> 00:31:28,728
The Press:
Do you have any reason
to dispute

638
00:31:28,728 --> 00:31:29,728
what that represents
him thinking and fearing

639
00:31:29,728 --> 00:31:31,127
before the launch
of the website?

640
00:31:31,127 --> 00:31:32,461
Mr. Carney:
What I can tell you is
that there is certainly --

641
00:31:32,461 --> 00:31:33,728
it is certainly
the case that in the period

642
00:31:33,728 --> 00:31:34,728
leading up to the launch,

643
00:31:34,728 --> 00:31:37,661
that individuals involved
in it saw problems

644
00:31:37,661 --> 00:31:39,695
that needed fixing,
and those problems

645
00:31:39,695 --> 00:31:42,794
were identified and addressed.

646
00:31:42,795 --> 00:31:47,194
We believed they were addressed
sufficiently so that the site

647
00:31:47,194 --> 00:31:51,261
would launch with some glitches,
but effectively, on October 1st.

648
00:31:51,261 --> 00:31:52,895
And that did not happen.

649
00:31:52,895 --> 00:31:59,661
So again, the logic around
this is to suggest that somehow

650
00:31:59,661 --> 00:32:03,661
inside the administration,
we all knew, or somebody knew,

651
00:32:03,661 --> 00:32:08,161
that the thing was not going to
work effectively October 1st,

652
00:32:08,161 --> 00:32:12,428
and yet we were out there
talking about the importance of

653
00:32:12,428 --> 00:32:14,594
the launch on October 1st
and how everybody should go

654
00:32:14,594 --> 00:32:16,861
to the website and
take advantage of it.

655
00:32:16,861 --> 00:32:20,895
I don't think if you follow that
logic to its conclusion

656
00:32:20,895 --> 00:32:22,795
that it makes any sense at all.

657
00:32:22,795 --> 00:32:26,161
The fact is we did not
anticipate that the problems

658
00:32:26,161 --> 00:32:30,361
that occurred on October
1st and in the aftermath

659
00:32:30,361 --> 00:32:31,461
were going to happen.

660
00:32:31,461 --> 00:32:33,094
We thought there were
would be some glitches,

661
00:32:33,094 --> 00:32:37,027
as there are with the
launches of major websites,

662
00:32:37,027 --> 00:32:39,594
but not on the scale
that we ended up seeing.

663
00:32:39,594 --> 00:32:41,328
The Press:
Would you acknowledge
that what the President

664
00:32:41,328 --> 00:32:44,360
announced yesterday will
be difficult for insurance

665
00:32:44,361 --> 00:32:45,695
companies to deal with?

666
00:32:45,695 --> 00:32:49,561
They've already raised
some just practical issues.

667
00:32:49,561 --> 00:32:51,593
They'll have to contact
their consumers --

668
00:32:51,594 --> 00:32:52,728
their customers, rather.

669
00:32:52,728 --> 00:32:55,528
They'll have to
recalculate their premiums.

670
00:32:55,528 --> 00:32:56,528
And they'll have to --

671
00:32:56,528 --> 00:32:57,528
Mr. Carney:
Premiums are locked in for 2014.

672
00:32:57,528 --> 00:32:59,761
They are locked in and set.

673
00:32:59,761 --> 00:33:01,628
That is a fact.

674
00:33:01,628 --> 00:33:04,761
The Press:
They don't have to recalculate
them by re-issuing policies

675
00:33:04,761 --> 00:33:05,828
that have been canceled?

676
00:33:05,828 --> 00:33:07,293
Won't that affect
some of those calculations?

677
00:33:07,294 --> 00:33:08,994
Mr. Carney:
The fact of the matter is
that any of the existing --

678
00:33:08,994 --> 00:33:11,093
I mean, this is one of
the things that consumers

679
00:33:11,094 --> 00:33:15,194
need to be aware of --
that as was the case always

680
00:33:15,194 --> 00:33:16,328
in the individual market,

681
00:33:16,328 --> 00:33:19,094
which was the least
regulated portion

682
00:33:19,094 --> 00:33:22,094
of the insurance market,
these policies were subject

683
00:33:22,094 --> 00:33:23,561
to substantial
premium increases.

684
00:33:23,561 --> 00:33:24,561
It happened all the time.

685
00:33:24,561 --> 00:33:25,928
The average was 15 percent.

686
00:33:25,928 --> 00:33:31,361
And they were also subject to
downgrading on a regular basis,

687
00:33:31,361 --> 00:33:33,895
or where individuals
had a policy for a year,

688
00:33:33,895 --> 00:33:36,628
but if they got sick that year,
then they could be dropped.

689
00:33:36,628 --> 00:33:37,727
None of that exists now.

690
00:33:37,728 --> 00:33:39,394
In the Affordable Care Act
and in the marketplaces,

691
00:33:39,394 --> 00:33:41,561
there are protections in
place for those individuals.

692
00:33:41,561 --> 00:33:45,293
If you choose to renew
that existing policy,

693
00:33:45,294 --> 00:33:49,461
you need to do so, understanding
-- and this is where we're

694
00:33:49,461 --> 00:33:51,661
asking the insurance companies
to make it clear to their

695
00:33:51,661 --> 00:33:54,994
consumers these facts --
that you do not get obviously

696
00:33:54,994 --> 00:33:57,561
the tax credits that might
be available to you,

697
00:33:57,561 --> 00:34:01,127
but also some of the other
protections that would come

698
00:34:01,127 --> 00:34:04,860
with policies that
fit the minimum standards

699
00:34:04,861 --> 00:34:06,394
under the Affordable Care Act.

700
00:34:06,394 --> 00:34:08,928
The Press:
Do you have any idea or
estimate of how many people

701
00:34:08,928 --> 00:34:10,895
actually fall into
this particular category?

702
00:34:10,895 --> 00:34:13,494
Because it's a broader --
it's a smaller category

703
00:34:13,494 --> 00:34:15,661
than the individual
market itself.

704
00:34:15,661 --> 00:34:18,127
Mr. Carney:
No, I think this is
what Cheryl was asking.

705
00:34:18,127 --> 00:34:20,860
And I don't --
I've seen a lot of reports.

706
00:34:20,860 --> 00:34:22,493
I would encourage
you to participate

707
00:34:22,494 --> 00:34:24,428
in the CMS briefings
that they have.

708
00:34:24,428 --> 00:34:26,328
They may have more
detail about this.

709
00:34:26,328 --> 00:34:28,127
I think the reports have varied.

710
00:34:28,127 --> 00:34:34,795
It is a portion of the
5 percent of the population

711
00:34:34,795 --> 00:34:36,461
that participates in
the individual market.

712
00:34:36,460 --> 00:34:38,261
What we know is
that of that 5 percent,

713
00:34:38,261 --> 00:34:41,328
a million --
what's going on here?

714
00:34:41,328 --> 00:34:42,328
The Press:
No, I was saying
it was simulcast.

715
00:34:42,328 --> 00:34:43,828
It's underway now.

716
00:34:43,828 --> 00:34:45,661
Mr. Carney:
Well, if anybody wants to
go get on that call, you can.

717
00:34:45,661 --> 00:34:50,428
You might get answers to the
specific question for numbers.

718
00:34:50,428 --> 00:34:56,393
But, in any case, of the
5 percent, a million, roughly,

719
00:34:56,393 --> 00:34:58,528
would be eligible for
Medicaid in those states

720
00:34:58,528 --> 00:35:00,528
that have expanded it.

721
00:35:00,528 --> 00:35:04,060
And when we talk about --
I mean, here's, again, context.

722
00:35:04,061 --> 00:35:06,795
These individuals are of great
concern to the President,

723
00:35:06,795 --> 00:35:08,561
the ones who have been
adversely affected by this.

724
00:35:08,561 --> 00:35:11,761
And he feels a responsibility
for taking steps

725
00:35:11,761 --> 00:35:13,628
to fix the problem
for those individuals,

726
00:35:13,628 --> 00:35:14,628
to make that transition

727
00:35:14,628 --> 00:35:16,761
smoother; to
allow insurance companies

728
00:35:16,761 --> 00:35:20,594
and state insurance
commissioners to ensure

729
00:35:20,594 --> 00:35:21,828
that they can
renew their policies,

730
00:35:21,828 --> 00:35:24,628
if they so desire,
making sure that they're aware

731
00:35:24,628 --> 00:35:26,428
of what their alternative
are and aware of the fact

732
00:35:26,428 --> 00:35:29,027
that their alternatives might be
significantly better for them,

733
00:35:29,027 --> 00:35:32,261
both in the benefits they
receive and the costs

734
00:35:32,261 --> 00:35:35,061
that they incur.

735
00:35:35,061 --> 00:35:37,994
One thing that is absolutely the
case when we talk about this,

736
00:35:37,994 --> 00:35:40,961
again, more globally,
is that all those states

737
00:35:40,961 --> 00:35:43,461
out there that have refused,
for ideological reasons,

738
00:35:43,461 --> 00:35:48,660
to expand Medicaid are depriving
millions of Americans

739
00:35:48,661 --> 00:35:50,428
of insurance coverage.

740
00:35:50,428 --> 00:35:52,227
Millions.

741
00:35:52,227 --> 00:35:56,560
More than are affected by
these cancellation policies.

742
00:35:56,561 --> 00:35:59,494
That's a fact,
and it's a problematic fact,

743
00:35:59,494 --> 00:36:04,628
because a lot of those
individuals are veterans

744
00:36:04,628 --> 00:36:08,528
who could be getting Medicaid
insurance under the expansion

745
00:36:08,528 --> 00:36:12,227
of Medicaid, created
by the Affordable Care Act,

746
00:36:12,227 --> 00:36:15,761
but for ideological reasons,

747
00:36:15,761 --> 00:36:17,895
governors have in some
states declined to do that.

748
00:36:17,895 --> 00:36:19,261
Not all Republican governors.

749
00:36:19,261 --> 00:36:22,895
As we know, in Ohio, where
the President was yesterday;

750
00:36:22,895 --> 00:36:26,695
Arizona, Florida, other states
with Republican governors,

751
00:36:26,695 --> 00:36:29,628
they have made the decision to
do right by their constituents

752
00:36:29,628 --> 00:36:34,461
and expand Medicaid and make
quality insurance available

753
00:36:34,461 --> 00:36:38,261
to millions of low-income
Americans who need it.

754
00:36:38,261 --> 00:36:44,695
So we have a problem that we're
trying to fix specific to the

755
00:36:44,695 --> 00:36:48,061
section, the subsection of that
5 percent of the population.

756
00:36:48,061 --> 00:36:51,328
But there are other issues here
that we need to work together to

757
00:36:51,328 --> 00:36:55,294
fix, and that's why we continue
to urge governors in states that

758
00:36:55,294 --> 00:36:59,428
haven't expanded Medicaid to
do so for their constituents,

759
00:36:59,428 --> 00:37:03,261
not because of their
-- they may be ideologically

760
00:37:03,261 --> 00:37:07,594
opposed to this President
or to a health care reform

761
00:37:07,594 --> 00:37:08,928
that has his name on it,

762
00:37:08,928 --> 00:37:13,861
but the bottom line is they have
the opportunity to help their

763
00:37:13,861 --> 00:37:15,294
citizens and they ought to.

764
00:37:15,294 --> 00:37:18,227
The Press:
It's no secret to you
that House Democrats

765
00:37:18,227 --> 00:37:21,060
and Senate Democrats were urging
the President to make public

766
00:37:21,061 --> 00:37:23,795
whatever fix he was going
to have for this problem

767
00:37:23,795 --> 00:37:25,661
before the House vote today
on the Upton bill,

768
00:37:25,661 --> 00:37:29,361
and to give them a place
or a position to take,

769
00:37:29,361 --> 00:37:32,027
or a policy response
to point to,

770
00:37:32,027 --> 00:37:34,895
so they wouldn't be exposed to
this vote on the Upton bill

771
00:37:34,895 --> 00:37:36,561
or possibly something
else in the Senate.

772
00:37:36,561 --> 00:37:39,761
Does the President and the White
House believe this fix settles

773
00:37:39,761 --> 00:37:42,828
the issue, at least for now,
and does not require

774
00:37:42,828 --> 00:37:45,094
legislative intervention of
the kind that Mary Landrieu

775
00:37:45,094 --> 00:37:47,895
and other Senate Democrats
are continuing to explore?

776
00:37:47,895 --> 00:37:49,895
Mr. Carney:
The President
said in his remarks,

777
00:37:49,895 --> 00:37:52,361
in his prepared
remarks yesterday,

778
00:37:52,361 --> 00:37:56,993
that he wants to work with
lawmakers of both parties

779
00:37:56,994 --> 00:38:00,227
who are engaged in good-faith
efforts to make improvements

780
00:38:00,227 --> 00:38:03,560
to the Affordable Care
Act so that it --

781
00:38:03,561 --> 00:38:06,928
The Press:
No, but on this
particular issue.

782
00:38:06,928 --> 00:38:09,528
Mr. Carney:
That woul include on
this particular issue.

783
00:38:09,528 --> 00:38:13,294
We absolutely do not support
and oppose the Upton bill,

784
00:38:13,294 --> 00:38:14,828
because whatever
the intentions --

785
00:38:14,828 --> 00:38:17,328
and I think House
Republican intentions

786
00:38:17,328 --> 00:38:19,127
towards the Affordable Care
Act have been pretty clear --

787
00:38:19,127 --> 00:38:21,494
but whatever the intentions
of that particular bill,

788
00:38:21,494 --> 00:38:26,594
it certainly --
while maybe fixing the problem

789
00:38:26,594 --> 00:38:29,127
potentially of those who
receive cancellation letters --

790
00:38:29,127 --> 00:38:31,094
it also, by allowing insurers to

791
00:38:31,094 --> 00:38:33,027
sell new policies
to new customers

792
00:38:33,027 --> 00:38:36,661
that don't meet the standards,
is deliberately or not designed

793
00:38:36,661 --> 00:38:40,461
to undermine the Affordable
Care Act in the long run.

794
00:38:40,461 --> 00:38:44,627
And I think you would find if
you talked to insurers that they

795
00:38:44,628 --> 00:38:48,461
would have serious problems
with something like that,

796
00:38:48,461 --> 00:38:52,261
because it would undercut the
marketplace and it would create

797
00:38:52,261 --> 00:38:56,227
a situation that would
be very hard to sustain.

798
00:38:56,227 --> 00:38:58,094
Wendell.

799
00:38:58,094 --> 00:39:00,127
The Press:
Since the President
can't compel insurers

800
00:39:00,127 --> 00:39:04,661
to renew these policies,
what's he going to say to them

801
00:39:04,661 --> 00:39:06,895
to convince them to go
along, to persuade them,

802
00:39:06,895 --> 00:39:08,561
which I gather is what
today's meeting is about?

803
00:39:08,561 --> 00:39:10,561
Mr. Carney:
Well, look, there are
a lot of issues that

804
00:39:10,561 --> 00:39:14,695
the President looks forward to
discussing with insurers today,

805
00:39:14,695 --> 00:39:15,994
when it comes to
the implementation

806
00:39:15,994 --> 00:39:16,961
of the Affordable Care Act.

807
00:39:16,961 --> 00:39:18,026
This is one of them.

808
00:39:18,027 --> 00:39:21,494
I think that he will
certainly raise with them

809
00:39:24,027 --> 00:39:26,561
what this fix does

810
00:39:26,561 --> 00:39:32,428
and why he thinks it's
the right thing to do,

811
00:39:32,428 --> 00:39:37,828
and encourage them to offer
renewals to those customers

812
00:39:37,828 --> 00:39:40,895
who might want to avail
themselves of that choice.

813
00:39:40,895 --> 00:39:42,961
I mean, the purpose here
is to provide a choice,

814
00:39:42,961 --> 00:39:46,294
it's not to compel people
to renew or to compel people

815
00:39:46,294 --> 00:39:52,161
to choose any particular
plan within the marketplace.

816
00:39:52,161 --> 00:39:55,094
It's to make them --
to give them this option,

817
00:39:55,094 --> 00:39:56,394
and when you give
them this option,

818
00:39:56,394 --> 00:40:00,660
to also make them aware of
what's available to them

819
00:40:00,661 --> 00:40:03,661
in the marketplace and
also make them aware

820
00:40:03,661 --> 00:40:06,494
of what they do not get in terms
of protections and benefits

821
00:40:06,494 --> 00:40:11,361
if they choose to stick
with an individual market plan

822
00:40:11,361 --> 00:40:13,661
that does not meet
the minimum standards

823
00:40:13,661 --> 00:40:15,161
of the Affordable Care Act.

824
00:40:15,161 --> 00:40:17,027
The Press:
But it requires insurance
companies to act rather swiftly

825
00:40:17,027 --> 00:40:20,027
over the next 32 days or so.

826
00:40:20,027 --> 00:40:24,194
What will he say to persuade
them to make that effort?

827
00:40:24,194 --> 00:40:25,728
Mr. Carney:
Well, I think he
will talk about --

828
00:40:25,728 --> 00:40:29,795
and I think there was a very
lengthy briefing yesterday

829
00:40:29,795 --> 00:40:34,994
in which officials more steeped
in the minutiae of the policy

830
00:40:34,994 --> 00:40:39,861
tried to explain how
it works to reporters.

831
00:40:39,861 --> 00:40:42,493
But I think he would explain
how he envisioned this working,

832
00:40:42,494 --> 00:40:45,828
how we are confident
that it would not, for example,

833
00:40:45,828 --> 00:40:51,194
on the questions I got
at the top of the briefing,

834
00:40:51,194 --> 00:40:53,828
create adverse problems
for the Affordable Care Act

835
00:40:53,828 --> 00:40:56,127
when it came to the risk pools

836
00:40:56,127 --> 00:40:59,428
because of the flexibility
the Secretary has

837
00:40:59,428 --> 00:41:01,261
to make adjustments.

838
00:41:01,261 --> 00:41:03,828
And I'm sure those
issues will be discussed.

839
00:41:03,828 --> 00:41:07,061
The goal here is to make this
transition as smooth as possible

840
00:41:07,061 --> 00:41:11,528
for those Americans who have
been affected by cancellation

841
00:41:11,528 --> 00:41:19,394
notices and may be in a position
of finding their best option

842
00:41:19,394 --> 00:41:22,528
in their view, the renewal
of an existing policy,

843
00:41:22,528 --> 00:41:24,394
even if it doesn't
meet minimum standards

844
00:41:24,394 --> 00:41:27,993
and doesn't give the protections
that new plans would offer.

845
00:41:27,994 --> 00:41:30,294
And this extends
that possibility.

846
00:41:30,294 --> 00:41:31,461
It's important
to remember, again,

847
00:41:31,461 --> 00:41:35,428
when we talk about
the world as it existed

848
00:41:35,428 --> 00:41:36,728
before the
announcement yesterday,

849
00:41:36,728 --> 00:41:42,594
that every insurer in
the states where this is allowed

850
00:41:42,594 --> 00:41:47,561
could have and could offer
renewals of those plans already.

851
00:41:47,561 --> 00:41:49,294
What the President announced
yesterday would simply

852
00:41:49,294 --> 00:41:51,094
extend the period for renewal.

853
00:41:51,094 --> 00:41:52,494
The Press:
What's his authority
for doing this?

854
00:41:52,494 --> 00:41:55,628
I ask that in the
same way that people ask

855
00:41:55,628 --> 00:41:59,528
whether he had the authority
to basically waive the mandate

856
00:41:59,528 --> 00:42:01,394
for larger businesses.

857
00:42:01,394 --> 00:42:04,895
What's his authority
for doing this today?

858
00:42:04,895 --> 00:42:08,194
Mr. Carney: I know I -- well,
the Secretary has the authority

859
00:42:08,194 --> 00:42:12,261
under the law to -- here it is.

860
00:42:12,261 --> 00:42:16,628
The Secretary's authority can
be used in narrow circumstances

861
00:42:16,628 --> 00:42:20,695
to ease implementation,
short of legislative changes,

862
00:42:20,695 --> 00:42:22,561
and this is one
of those instances.

863
00:42:22,561 --> 00:42:24,294
There are individuals
for whom the implementation

864
00:42:24,294 --> 00:42:27,027
of new consumer
protections without a transition

865
00:42:27,027 --> 00:42:29,428
would result in a loss
of an existing plan,

866
00:42:29,428 --> 00:42:31,560
even though the law includes
a section on the preservation

867
00:42:31,561 --> 00:42:33,928
of the right
to maintain existing coverage --

868
00:42:33,928 --> 00:42:37,060
what I talked
to you about earlier.

869
00:42:37,061 --> 00:42:39,261
So this type of action
was used for last year

870
00:42:39,261 --> 00:42:41,895
in the administration's policy
on deferred action for childhood

871
00:42:41,895 --> 00:42:44,194
arrivals pending immigration
reform, for example.

872
00:42:44,194 --> 00:42:47,961
That was something that DHS did.

873
00:42:47,961 --> 00:42:52,328
So this is authority that
exists for the Secretary to use

874
00:42:52,328 --> 00:42:54,294
to help smooth the
implementation of this policy.

875
00:42:54,294 --> 00:42:55,294
Peter and then Chris.

876
00:42:55,294 --> 00:42:56,461
The Press:
While we were speaking,

877
00:42:56,461 --> 00:42:58,660
the House just passed the
Keep Your Health Plan Act,

878
00:42:58,661 --> 00:43:00,394
261 to 157.

879
00:43:00,394 --> 00:43:02,560
In simple language, the message
from the White House

880
00:43:02,561 --> 00:43:05,394
about why that's bad is what?

881
00:43:05,394 --> 00:43:07,127
Mr. Carney:
This is the Upton bill.

882
00:43:07,127 --> 00:43:08,528
The Press:
Yes, correct.

883
00:43:08,528 --> 00:43:10,961
Mr. Carney:
Because whatever its
intentions, the plan would,

884
00:43:10,961 --> 00:43:15,328
by allowing insurers to sell
substandard policies

885
00:43:15,328 --> 00:43:16,428
to new customers --

886
00:43:16,428 --> 00:43:20,261
not simply to renew --
allow those individuals

887
00:43:20,261 --> 00:43:22,227
who had those policies
and received cancellations

888
00:43:22,227 --> 00:43:25,627
to renew them, but to sell
those policies to new customers,

889
00:43:25,628 --> 00:43:28,361
unlimited number of new
customers would undermine

890
00:43:28,361 --> 00:43:29,828
the central premise of
the Affordable Care Act,

891
00:43:29,828 --> 00:43:32,728
which is that there should be
minimum standards for everyone

892
00:43:32,728 --> 00:43:36,294
and that insurance companies
should not be able to

893
00:43:36,294 --> 00:43:39,761
in the new
marketplaces sell plans

894
00:43:39,761 --> 00:43:42,561
that charge Athena
twice what they charge you;

895
00:43:42,561 --> 00:43:49,261
that put annual caps on
what benefits you can receive;

896
00:43:49,261 --> 00:43:51,994
that give you
doctors' visits,

897
00:43:51,994 --> 00:43:55,828
but not hospitalizations;
that give you coverage,

898
00:43:55,828 --> 00:43:59,227
but not your child because
your child has asthma.

899
00:43:59,227 --> 00:44:02,027
So this is -- the
problem with the Upton bill

900
00:44:02,027 --> 00:44:03,328
and why we will --

901
00:44:03,328 --> 00:44:05,461
the President will veto it
if it ever gets to his desk,

902
00:44:05,461 --> 00:44:09,328
is because it would
basically -- again,

903
00:44:09,328 --> 00:44:12,227
whether this is the intention
of the author or not -- it would

904
00:44:12,227 --> 00:44:19,127
basically go back to in that
market the world that existed

905
00:44:19,127 --> 00:44:21,861
before, which I think it's
important to remember:

906
00:44:21,861 --> 00:44:25,060
Even as we have these legitimate
discussions about the problems

907
00:44:25,061 --> 00:44:26,394
with the rollout of the
Affordable Care Act,

908
00:44:26,394 --> 00:44:30,394
it's not a world that most
people want us to remain living

909
00:44:30,394 --> 00:44:35,093
in for those who have to suffer
the vagaries of the insurance

910
00:44:35,094 --> 00:44:37,461
market as individuals.

911
00:44:37,461 --> 00:44:39,694
So that's why it won't work.

912
00:44:39,695 --> 00:44:40,895
The Press:
Since the President
made the "if you like

913
00:44:40,895 --> 00:44:42,761
your plan, you can keep
your plan" promise,

914
00:44:42,761 --> 00:44:45,194
and now already we've heard from
at least three states that say

915
00:44:45,194 --> 00:44:47,795
they are not going to allow
the change from yesterday --

916
00:44:47,795 --> 00:44:50,294
the idea presented by
the White House to go forward --

917
00:44:50,294 --> 00:44:52,394
will, A, the President
reach out to those states

918
00:44:52,394 --> 00:44:53,928
and push them to do that?

919
00:44:53,928 --> 00:44:56,094
And then what does he say
directly to those individuals

920
00:44:56,094 --> 00:44:57,895
in those states who
say, Mr. President,

921
00:44:57,895 --> 00:45:00,861
you've made those promises to me
and now they don't apply to me?

922
00:45:00,861 --> 00:45:03,895
Mr. Carney:
What the President
will do and his team

923
00:45:03,895 --> 00:45:05,695
will do is work
with every state to try

924
00:45:05,695 --> 00:45:09,928
to discuss the
benefits of this fix --

925
00:45:09,928 --> 00:45:12,361
The Press:
So what do you say
to Washington State?

926
00:45:12,361 --> 00:45:13,627
Mr. Carney:
Well, I think I had
this question earlier.

927
00:45:13,628 --> 00:45:14,728
But the answer
is that the President

928
00:45:14,728 --> 00:45:15,728
will continue to work --

929
00:45:15,728 --> 00:45:17,394
he is doing --
he did yesterday --

930
00:45:17,394 --> 00:45:19,560
The Press:
Is he disappointed maybe
is a better way to put it.

931
00:45:19,561 --> 00:45:21,528
I know you answered --
perhaps his thoughts.

932
00:45:21,528 --> 00:45:25,026
Mr. Carney:
He did yesterday what
he can do administratively

933
00:45:25,027 --> 00:45:26,027
to address this problem.

934
00:45:26,027 --> 00:45:29,828
He will work with
Congress to do --

935
00:45:29,828 --> 00:45:32,961
so that Congress can do
what it can do legislatively

936
00:45:32,961 --> 00:45:37,993
in a good-faith effort
to address problems,

937
00:45:37,994 --> 00:45:40,961
to improve the implementation
of the Affordable Care Act.

938
00:45:40,961 --> 00:45:43,026
What he won't do is support
policies that essentially

939
00:45:43,027 --> 00:45:46,194
are designed
to sabotage, repeal,

940
00:45:46,194 --> 00:45:47,828
undermine the
Affordable Care Act.

941
00:45:47,828 --> 00:45:48,828
The Press:
So if people are upset,

942
00:45:48,828 --> 00:45:50,761
who should they be upset with?

943
00:45:50,761 --> 00:45:52,761
Who should the blame
be directed to?

944
00:45:52,761 --> 00:45:55,127
Should it be directed
to the President,

945
00:45:55,127 --> 00:45:57,328
to the state commissioner,
or to the insurance company?

946
00:45:57,328 --> 00:45:59,361
The insurance companies say
you're making people

947
00:45:59,361 --> 00:46:01,961
direct the blame toward them.

948
00:46:01,961 --> 00:46:03,160
Mr. Carney:
Two things.

949
00:46:03,161 --> 00:46:06,461
One, the President I think
accepted an ample amount

950
00:46:06,461 --> 00:46:08,294
of responsibility
before you yesterday.

951
00:46:08,294 --> 00:46:09,728
No question.

952
00:46:09,728 --> 00:46:11,695
The Press:
But it doesn't fix it for
a lot of people even still.

953
00:46:11,695 --> 00:46:13,027
Mr. Carney:
Let's also be clear,

954
00:46:13,027 --> 00:46:15,795
and it is absolutely incumbent
on anyone who reports on this

955
00:46:15,795 --> 00:46:20,027
to be clear about the reality
of the individual market --

956
00:46:20,027 --> 00:46:22,695
which is that the
things that happen to consumers

957
00:46:22,695 --> 00:46:26,994
in that market every year
can continue to happen,

958
00:46:26,994 --> 00:46:28,394
unless individuals end
up in the marketplaces

959
00:46:28,394 --> 00:46:34,394
where they have the protections
under the Affordable Care Act.

960
00:46:37,094 --> 00:46:41,895
So one of the reasons why we got
where we are is because insurers

961
00:46:41,895 --> 00:46:48,828
have been able to in that
market to sell you a plan

962
00:46:48,828 --> 00:46:49,928
because you're healthy.

963
00:46:49,928 --> 00:46:52,227
And then, when you get
sick during the year that

964
00:46:52,227 --> 00:46:54,627
that plan and that
contract was in effect,

965
00:46:54,628 --> 00:46:58,061
refuse to renew your
policy the next year,

966
00:46:58,061 --> 00:47:00,161
because you now have
a preexisting condition.

967
00:47:00,161 --> 00:47:02,695
They again, as I
said, could sell you a plan

968
00:47:02,695 --> 00:47:05,194
and take the same
plan and market it to a woman

969
00:47:05,194 --> 00:47:07,428
of the exact same age
and the exact same health,

970
00:47:07,428 --> 00:47:09,694
and charge her
up to twice as much.

971
00:47:09,695 --> 00:47:12,394
So again,
this is not about blame.

972
00:47:12,394 --> 00:47:15,828
But I think it is important
to understand what individuals

973
00:47:15,828 --> 00:47:20,661
in that market have been dealing
with for a long, long time,

974
00:47:20,661 --> 00:47:22,728
and problems in
that market that have been real

975
00:47:22,728 --> 00:47:24,695
and have nothing to do
with the Affordable Care Act,

976
00:47:24,695 --> 00:47:28,194
except in the fact that the
Affordable Care Act was designed

977
00:47:28,194 --> 00:47:34,361
in part to prevent those
problems from traveling

978
00:47:34,361 --> 00:47:35,627
with us into the future.

979
00:47:35,628 --> 00:47:37,127
The Press:
The President said
yesterday there will be

980
00:47:37,127 --> 00:47:38,994
an intense evaluation already.

981
00:47:38,994 --> 00:47:41,394
He is asking a lot of tough
questions of his team

982
00:47:41,394 --> 00:47:43,394
to figure out how
we got to this point.

983
00:47:43,394 --> 00:47:45,026
Has the President done anything,

984
00:47:45,027 --> 00:47:48,961
communicated anything
to his team to go forward

985
00:47:48,961 --> 00:47:51,961
now with some form
of after-action report,

986
00:47:51,961 --> 00:47:54,394
given the fact that the October
1deadline has already passed?

987
00:47:54,394 --> 00:47:57,794
What is he doing right now
for that study to take place?

988
00:47:57,795 --> 00:47:59,294
The Press:
Peter, I think that
the answer to that is no,

989
00:47:59,294 --> 00:48:03,227
because the President right
now has tasked his team --

990
00:48:03,227 --> 00:48:05,627
and everyone involved
in this effort --

991
00:48:05,628 --> 00:48:11,661
to the work needed to improve
the website and to improve

992
00:48:11,661 --> 00:48:14,027
the implementation
of the Affordable Care Act

993
00:48:14,027 --> 00:48:15,494
and the delivery
of the benefits

994
00:48:15,494 --> 00:48:17,094
of the Affordable Care Act.

995
00:48:17,094 --> 00:48:20,994
I think there are obviously
already efforts underway in

996
00:48:20,994 --> 00:48:23,661
Congress to engage in oversight.

997
00:48:23,661 --> 00:48:26,795
And what the President is
focused on and what his team

998
00:48:26,795 --> 00:48:29,328
is focused on is doing the work
necessary to make sure that the

999
00:48:29,328 --> 00:48:31,361
Affordable Care Act works
for the American people.

1000
00:48:31,361 --> 00:48:33,294
The Press:
Does he believe that people
should be accountable --

1001
00:48:33,294 --> 00:48:35,828
even if that process
doesn't happen yet?

1002
00:48:35,828 --> 00:48:39,227
Mr. Carney:
I think the President stood
up in front of you yesterday,

1003
00:48:39,227 --> 00:48:42,594
as he did in an interview
on your network last week,

1004
00:48:42,594 --> 00:48:44,895
and took responsibility
for the problems that have

1005
00:48:44,895 --> 00:48:47,861
arisen with the rollout
of the Affordable Care Act.

1006
00:48:47,861 --> 00:48:50,761
He is accountable and
his team is accountable.

1007
00:48:50,761 --> 00:48:52,961
And, no, his team --

1008
00:48:52,961 --> 00:48:57,394
and that's why he has
assigned them to work overtime

1009
00:48:57,394 --> 00:49:01,026
to make these fixes
and get it right.

1010
00:49:01,027 --> 00:49:02,294
Chris.

1011
00:49:02,294 --> 00:49:03,728
The Press:
Thanks, Jay.

1012
00:49:03,728 --> 00:49:06,094
Yesterday, Speaker Boehner said
that he sees no basis or no need

1013
00:49:06,094 --> 00:49:07,528
for the Employment
Non-Discrimination Act

1014
00:49:07,528 --> 00:49:10,461
when I asked him at
a news conference if he would be

1015
00:49:10,461 --> 00:49:12,428
open to bringing
it up for a vote.

1016
00:49:12,428 --> 00:49:14,594
Given the repeated statements of
opposition from that bill

1017
00:49:14,594 --> 00:49:16,294
from Republican leadership,
is there any reconsideration

1018
00:49:16,294 --> 00:49:19,194
at the White House
to an executive order --

1019
00:49:19,194 --> 00:49:20,428
Mr. Carney:
Chris, I appreciate
the question

1020
00:49:20,428 --> 00:49:22,728
and the Speaker's comments
of course are disappointing.

1021
00:49:22,728 --> 00:49:26,895
And I think that those who
oppose this legislation

1022
00:49:26,895 --> 00:49:28,261
are taking the wrong position.

1023
00:49:28,261 --> 00:49:34,861
And they are taking a position
that I think history will prove

1024
00:49:34,861 --> 00:49:42,094
to be wrong, as has been the
case in seminal civil rights

1025
00:49:42,094 --> 00:49:44,328
legislation throughout our
history in this country.

1026
00:49:47,528 --> 00:49:51,428
Basic equality is fundamental
to who we are as a nation.

1027
00:49:51,428 --> 00:49:57,394
And our history is,
in part, a story of efforts

1028
00:50:00,261 --> 00:50:06,561
and struggles to reach
that ideal where equality

1029
00:50:06,561 --> 00:50:11,895
is not only an
aspiration but a fact.

1030
00:50:11,895 --> 00:50:14,461
The Employment
Non-Discrimination Act is

1031
00:50:14,461 --> 00:50:20,627
a piece of that story, and it
ought to be passed by Congress,

1032
00:50:20,628 --> 00:50:23,461
passed by the House
as it was by the Senate,

1033
00:50:23,461 --> 00:50:25,026
because this President
will sign it into law.

1034
00:50:25,027 --> 00:50:29,895
And we believe that we have come
a long way -- and I know you

1035
00:50:29,895 --> 00:50:32,428
and I have had this conversation
over the course of the last

1036
00:50:32,428 --> 00:50:36,027
several years -- and I think
that it is fair to say that

1037
00:50:36,027 --> 00:50:39,861
maybe some close observers of
this debate did not believe we

1038
00:50:39,861 --> 00:50:41,928
would get to where
we are now, where the Senate

1039
00:50:41,928 --> 00:50:45,761
has passed this legislation with
bipartisan support.

1040
00:50:45,761 --> 00:50:49,194
So we are not at all ready to
believe that the fight is over

1041
00:50:49,194 --> 00:50:55,094
in the House, because it is the
President's strong conviction

1042
00:50:55,094 --> 00:50:57,394
that this is the right thing
to do and that the arguments

1043
00:50:57,394 --> 00:51:02,528
against it do not hold up to
scrutiny or the test of history.

1044
00:51:02,528 --> 00:51:06,727
So we're going to keep fighting
for the House to take it up

1045
00:51:06,728 --> 00:51:08,494
and urging the
House to take it up.

1046
00:51:08,494 --> 00:51:14,194
We believe that if it were
given a vote on the floor,

1047
00:51:14,194 --> 00:51:17,061
that it would pass and that
Democrats and Republicans would

1048
00:51:17,061 --> 00:51:19,528
vote yes, and the President
would sign it into law.

1049
00:51:19,528 --> 00:51:21,461
And we believe, as we've
discussed, you and I,

1050
00:51:21,461 --> 00:51:24,528
over the past many
months and years,

1051
00:51:24,528 --> 00:51:27,895
that that is the
best solution here.

1052
00:51:27,895 --> 00:51:29,861
And we're going to
continue to fight for it.

1053
00:51:29,861 --> 00:51:31,194
The Press:
If the intransigence continues,

1054
00:51:31,194 --> 00:51:33,428
would the President be open to
the idea of threatening to issue

1055
00:51:33,428 --> 00:51:34,828
the executive order --

1056
00:51:34,828 --> 00:51:36,628
Mr. Carney:
Look, I think that
we're focused on getting

1057
00:51:36,628 --> 00:51:38,394
this legislation passed
right now, Chris.

1058
00:51:38,394 --> 00:51:40,928
And for the reasons
I just discussed,

1059
00:51:40,928 --> 00:51:46,928
we believe that resistance to
it will eventually fall away,

1060
00:51:49,361 --> 00:51:52,394
because the rightness
of it will prevail.

1061
00:51:52,394 --> 00:51:54,593
Let me give you a
week ahead, please.

1062
00:51:54,594 --> 00:51:58,328
On Sunday, the First Family will
attend the Oregon State versus

1063
00:51:58,328 --> 00:52:00,561
University of Maryland
basketball game

1064
00:52:00,561 --> 00:52:02,861
in College Park, Maryland.

1065
00:52:02,861 --> 00:52:04,694
On Monday, the President
will attend meetings

1066
00:52:04,695 --> 00:52:06,027
here at the White House.

1067
00:52:06,027 --> 00:52:08,194
On Tuesday, the press
will deliver remarks

1068
00:52:08,194 --> 00:52:11,294
at the White House Journal's
CEO Council's annual meeting.

1069
00:52:11,294 --> 00:52:15,728
On Wednesday,
the President will award

1070
00:52:15,728 --> 00:52:20,161
the Presidential
Medal of Freedom.

1071
00:52:20,161 --> 00:52:21,561
The First Lady will also attend.

1072
00:52:21,561 --> 00:52:24,394
The Medal of Freedom is our
nation's highest civilian honor,

1073
00:52:24,394 --> 00:52:27,560
presented to individuals who
have made especially meritorious

1074
00:52:27,561 --> 00:52:30,461
contributions to the
security or national interests

1075
00:52:30,461 --> 00:52:32,828
of the United States,
to world peace,

1076
00:52:32,828 --> 00:52:34,695
or to cultural
or other significant

1077
00:52:34,695 --> 00:52:36,895
public or private endeavors.

1078
00:52:36,895 --> 00:52:39,428
The medals will be presented
at the White House

1079
00:52:39,428 --> 00:52:41,394
in a morning ceremony.

1080
00:52:41,394 --> 00:52:42,928
On Thursday, the President
will attend meetings

1081
00:52:42,928 --> 00:52:44,261
here at the White House.

1082
00:52:44,261 --> 00:52:48,461
And on Friday, the press will
host King Mohammed VI of Morocco

1083
00:52:48,461 --> 00:52:49,794
at the White House.

1084
00:52:49,795 --> 00:52:52,127
The visit will highlight the
longstanding friendship between

1085
00:52:52,127 --> 00:52:53,795
the United States and Morocco,

1086
00:52:53,795 --> 00:52:55,594
and strengthen our
strategic partnership.

1087
00:52:55,594 --> 00:52:58,428
The President looks forward to
discussing a range of issues of

1088
00:52:58,428 --> 00:53:02,027
mutual interest with the King,
including support for Morocco's

1089
00:53:02,027 --> 00:53:04,528
democratic and economic reforms.

1090
00:53:04,528 --> 00:53:06,928
This visit is also an
opportunity to increase

1091
00:53:06,928 --> 00:53:08,993
our cooperation on addressing
regional challenges,

1092
00:53:08,994 --> 00:53:11,695
including countering
violent extremism,

1093
00:53:11,695 --> 00:53:13,127
supporting democratic
transitions,

1094
00:53:13,127 --> 00:53:15,361
and promoting
economic development

1095
00:53:15,361 --> 00:53:17,428
in the Middle East and Africa.

1096
00:53:17,428 --> 00:53:18,928
That is your week ahead.

1097
00:53:18,928 --> 00:53:19,928
Thank you all very much.

1098
00:53:19,928 --> 00:53:21,361
Have a great weekend.

1099
00:53:21,361 --> 00:53:22,661
The Press:
Will you send out a reading --

1100
00:53:22,661 --> 00:53:24,061
The Press:
The insurance meeting?

1101
00:53:24,061 --> 00:53:25,161
The Press:
Yes, will you send out
something after the meeting?

1102
00:53:25,161 --> 00:53:26,061
Mr. Carney:
A readout?

1103
00:53:26,061 --> 00:53:26,928
We'll see.