We are focusing on the president , he is going to outline tomorrow night what he wants to do, you cant put the cart before the horse x in this case that cart is obamacare and repealing and, ultimately, replacing it. But there are plans in his budget announcement tomorrow night to lay out a case for increasing the defense budget, already pretty heldty at about 550 billion a year by another 54 billion. Just word of that has sent a lot of defense stocks soaring, and theyre not the only group that could be baiting the fish for what the president outline tomorrow night before a joint session of congress. With more, we go to blake burman at the white house. Hey, blake. Reporter two major, big ticket items under discussion here and really as the president set to med to capitol hill tomorrow night to lay out his vision before congress. That being the budget and to replace the Affordable Care act. Talk about the details, at least the thousand foot view stuff the president wants to focus on spending. Officials at the office of management and budget said 54 billion increase as it relates to defense will be a top priority for the president. There is a little bit of discussion just how big that is. Whether that is 3 or 10 peers depending how you look at the numbers. Either way its a an increase. The president unveiled the start of what is expected to be a major infrastructurealso his dee spending as it relates to Law Enforcement. On the Affordable Care act side, another day with the ceos coming in to the white house to meet with the president. It was Health Insurers earlier today. We believe they are still here with discussions. Among the sees yes, sir here today the leaders of unitedhealth, aetna, cigna, anthem, just to name a handf or and when the president was speaking earlier today to the governors who are at the white house today, a busy one, busy day it is, the president talked about the kind of the conundrum weve been talking about how to do health care while also cutting taxes. Listen here to President Trump earlier today. The tax cut is going to be major, its going to be simple and the whole tax plan is wonderful but i cant do it until we do health care because we have to know what the health care is going to cost and statutorily that is the way it is. Tax cutting has never been that easy but it is a tiny, little ant compared to what were talking about with obamacare. Reporter by the way, neil, the burden for a lot of this will fall on Mitch Mcconnell and paul ryan, the Republican Leaders up on the hill and they too are set to come here to the white house later this afternoon. Neil . Neil all right, blake burman, thank you very, very much. You hear often times the president having to do the health care thing first the argument you have to get that cleared out of the way legislate i havely addressing tax cuts. That is often in the time of beholder, not all agree with that. The republicans are right in saying right now if the Health Care Law the way it exists right now were to continue Going Forward, the money to pay for it would simply go away, would run out. 9 exorbitant benefits, inarguable benefits coverage for preexisting conditions and the like, that comes at a cost, with a lot of young people not participating and state exchanges spiraling out of control barely have half a dozen or so, a number of Insurance Companies opting out, the means which you finance this, that is what the president s talking about. So this is not a political statement on what you like or hate about the law that it is financially unsustainable Going Forward. I want to make it clear, when the president talks about doing nothing, go along, the money will run out. The best ic canal guise here cannal guys for it. But you have to way to pay for it. Pretty soon they kick you out. Bush 41 Campaign Manager and Hadley Heath Manning and charles payne. That is what it comes down to, it is unsustainable the way it is presently going. It is more so after the insurers dropped out of it sooner. A lot of people knew this. This is not a major surprise it would implode at some point. The key, the President Trump really understands if the republicans stepped away to implied it would be tough for them, because the American People put them in office to take care of this. Now it is going to be tough. Consider right now, we know that over the last year or so republicans have come up with five, maybe seven plans. Right now there is not a majority for any of them. So you just mentioned Mitch Mcconnell, and paul ryan a moment ago. They have a serious task of being able to find one that everyone can agree on and go with it. And that is going to be tough. Neil easier said than done. Even nancy pelosi, listen, the dems have not thrown anything out there on sunday talk show, said she didnt think they would be able to repeal it which i found interesting. Neil that may be the case. There is not much wiggle room. Hadley, one plais get a repeal vote going and dare republicans to reject that. That is the covered in the with sj and elsewhere, the thinking you dont want to put ourself out there against the party line in the hope you find replacement. The dirty little reality i say to democrats and republicans this thing is really not sustainable the way it is going. The costs are such that the money coming in can not possibly address that, especially with so many exchanges going kablooy and so many Insurance Companies heading out. This by its own weight collapsing. People think it is republican argument or conservative, it is just a math argument. What the do republicans do . As soon as they touch it, the president is right on this, it is on them, right . Thats right. Youre talking about the public costs. We have to look at the private costs. So Many Americans paying much higher insurance premiums. Higher outofpocket costs and high he die duckables from the government,. Charles is right this is important issue and will be a difficult one for republicans to address. Even harder than the job the democrats had in 2010 when they passed obamacare because republicans dont have the 60 vote majority. Finding consensus i believe they can do. They should be reassured, neil, if you look carefully at public polling, Many Americans dont like the Affordable Care act as it is. Many want major changes and many want repeal. When you ask americans under the condition there is a Transition Program and provision for people benefited under caa whether or not they support repeal, support for repeal goes up to 70 . Americans are unhappy with the law if republicans dont repeal it now, we will stay on the path to singgelpayer Health Care System. What democrats would like to do introduce a public option which ultimately would be the only option, driving competition out of the market. Neil i could be very cynical about that. Fred, the one thing unarguable when people are polled on the subject, of course they love coverage for preexisting conditions. I have someone with preexisting conditions by all means, keeping your kid on the policy longer, assuming you like your child, by all means, by all means. What is lost here if this meant doubling in your premiums or dramatic increase in your deductibles could you still deal with that . Even with all of that it is notc sustainable costwise. What would have been the danger in your eyes for republicans to back away from this. I argue that eitr way, they would have been tarred with its undoing, dingsomething or not doing something. That is where i think the president was wrong in this respect by doing nothing, he could argue, let it implode be on the democrats, it would be on the republican, wouldnt it . It would be on the republicans. The American People elected donald trump and Republican Congress to change. The principle change youre looking at is obamacare. Youre absolutely right on the cost structure here, it will fall on its own accord. Preexisting conditions is not to have, if you had a car and could get Car Insurance after the accident, you would not get Car Insurance until you had the accident. Who would give you insurance on Something Like that. It wouldnt work. It is not sustainable. Here is the dilemma you have. While the American People expect quick action, it is much better to get this right than to get this fast. Keep in mind, we just had the secretary of health and Human Services confirmed. Secretary price is now in office. The trump team is coming together. Theyre working at i know the house has been working on this very, very hard. I believe there will be a plan in place and it will be in the coming weeks, not months, but it is better to get it right than get it done fast. Neil by all means youre right about that. Maybe that is something comes out of the health care ceo meeting with the likes of unitedhealth group, cigna, aetna, humana, anthem, on and on. Meeting with the president. When they come out well be chatting with a few of them if they dont woman to the microphones first. Charles payne, one of the things always been at issue here is keeping them involved. Now there has to be incentive to get them involved. If they dont want to be, and this is delayed and it is not quick, that delays the tax cuts, that delays a lot of things, right . The incentive last time, they probably wrote this since they were really the authors of the majority of the bill was american taxpayer would cover any short falls that they had. L right. Those shortfalls have expired. So, once those protecons expired, they walked away. I will say between those two things, preexisting conditions and younger people, you know, president already said he want to keep both. I would get rid of younger people one. 26 is too much. Neil some ceos coming out of the meeting right now. Lets get a sense where they came from and where the president seems to be signaling he is coming from. Two things, President Trump, Vice President pence were very clear they will work toward a smooth transition. They will continue the dialogue with the leadership in congress and the industry, to put our consumers first and continue to give all americans access to quality, lowcost care. Thank you very much. Good morning, im joe swedish, ceo for anthem as well as chairman for the a him p, the Health Insurance plans of the united states. I would like to echo what dan said. The president was very engaging and clear around open about his intent to serve the consumers, to stablize the marketplace and to build a health care, Health Insurance model that works for all americans. Were very glad to be with him today to hear that message. Certainly are willing and wanting to witness how this will all transition to a workable plan for the united states. Thank you. Im bernard tyson, chairman and ceo of Kaiser Foundation health plan, better known as kaiser permanente. I too want to thank the president for the invitation to come to the white house and to talk to him about something that is very important to all of us, the Affordable Care act and whats going to be next. There was definite alignment that people want high quality care, affordable, accessible. And we talked about how we can make that happen and i look forward to learning more, to participating and being at the table to help to solve one of the pressing problems, making high quality, Affordable Care accessible to everyone in this country. Thank you veryc much. Thank you very. Neil all right. Pretty short and sweet. We hope to have one or several ever these ceos a little bit later on, but to a man or woman he they have been complaining about, if you promise the sun, the moon and stars to people and not expect us to charge more for it, that is one of the big issues came up creating the Affordable Care act in 2010, then you have another thing coming. That was widely trumpeted. Were no apologists for insurance industry, but the math is not sustainable. The argument the Administration Made at time, the Obama Administration that enough young people would sign up to offset the rising costs and covering those with other conditions or just older folks like charles and me. That did not pan out to be the case. Younger people eschewed it. Now were in a world of hurt and now theyre trying to come up with an alternative plan to save it. What i like, when the governors came out, you heard the governor of kentucky who tried to make the distinction between care and coverage, two ding different things. Having care and not having quality coverage. We heard three ceos echo the same thing. We want to have stability and model works for all. Another one said consensus for firstclass access to lowcost quality care. A third ceo from kaiser saying there was alignment, he used the same term, people want, high quality care. So, there seems to be a focus back to what Health Insurance is supposed to do in the first place. Now everyone is looking, they put their cards on the table. Waiting for white house to get back to see what can be put together. One idea being thrown out there, instead of premiums based on income, do something based on ages. It will not work if you dont get enough young people into it, most can opt out if they live in moms basement is too much of a copout. It itoo much of a whole. That is a lot less political, i dont know, maybe, some say millenials vote. Idea of going back now saying people with preexisting conditions can never be covered i think that is a tough one. Neil genie is out of the bottle. You have to find a way to pay for it. Charles payne, thank you very much. Well continue to look at this with our guests throughout the show. It is inarguable reality called math, the money coming in versus the money going out. That is something not new in washington of course. This is disproportionately out of whack even by washington standards. The money going out to keep this sustained is just not there. Reality is that the president is right when he talks about the fact this will implode of its own financial accord. If something isnt done. Something kicking around, roll back benefits, make benefits portable, get rid of lawsuits or rein them in. You might not flip over Insurance Companies. I have had problems with them. Im sure my buddy charles had problems with them. But they pay the bills or presumably charge you for the bills youre getting. If theyre opting out, theyre telling you something. It is not sustainable for us. It is not get business for us, that is what they have to business. Simply imploding of its own weight and accord. They have to do something. Trouble and details, they cant agree. Right now republicans are trying to hold ranks, can we all agree we repeal this thing the way it is . Yes, most of them can. You will get a couple holdouts, wait a minute, if you do something that worsens the deficit, i want no part of that. If you come up with a gargantuan republican program, less gargantuan than the one were replacing we dont want any part room of two votes in the senate and 22 in the house, that is the problem. That is one of the reasons this tax cut thing is held in abeyance until that is addressed. No easy problem, no immediate solution. Hence the concern a night before president outline a budget were told will go ahead and commit a lot more money hopes for defense. 540 billion a year budget right now. He wants to bring it up another 54 billion a year. A former Homeland Security dep sy secretary joins us now with his take on all that. Admiral, we look at this thing, go back and forth with defense, does it really need more money especially when this president was the first to say, cost overruns from everything from the air force one contract to a fighter jet contract, wouldnt it be wise to weed out that before committing still more money . What do you think . Well i think it is a good point that you make. Traditionally and correctly the policy pieces need to be on the table and you deal with the challenge of resourcing those policy decisions. The undertaking of this resecretary mattis is presenting to the president tomorrow will have an awful lot of that policy piece on the table. When decisions are made there, then to go bark and deal with the he resourcing against things that are on the table like the budget control act and sequester for against defense and budgeting campaign promises. The most important thing for the president and his new National Security team once he has them in place, he lost his both nominee to the army secretaryship and now the Navy Secretaryship. Neil right. The team needs to be at the table to develop the policy and direction in terms of where were Going Forward. That in of itself is enormously complex review that secretary mattis and the rest of the National Security team put on the table. We can deal with the resourcing once theyre established there. Neil we have getting an indication the generals came up with a plan to ultimately take on and defeat isis. It will be announced later this week. Could be next week. But secretary of defense jim mattis is planning the lead in isis meeting at the white house later this afternoon. What do you think integral to that . Others attempted. Isis became the force under the Prior Administration but it is what it is now. Wha