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Republican party. this will hit millions of americans. the president touting he is replacing obamacare step by step by step. this is definitely a major step in dismantling, but is it sabotage as democrats say? cnn congressional correspondent phil mattingly joins me from capitol hill. what's the impact and what's the reaction on the hill. >> look at the marketplace, these are subsidies to the insurance companies that allow insurers to cut prices how they offer insurance in specific areas for lower income individuals. so the market reality, presumptive nominepremiums will go up. some may want to...

Table? >> no. what does it have the effect of doing, it just shows heartlessness of this particular president. who is going to be victimized by it. it is going to be the poor, individuals, americans who don't have health care. >> the president says democrats come to the table and fix it. that's what he tweeted. >> democrats talked about coming to the table. only the president talks about repeal and replace, that's not fixing, that's getting rid of. >> it was collapsing now. in reality it is collapsing now that he makes its move because you say it is sabotage. do you have obligation to come to ...

Them, perhaps more effectively. the problem with that, this is where i think donald trump will face some political heat as he goes through this in an executive way is the replace part. it is one thing to start chipping away at certain things by executive order, but you do need congress to replace parts of what you're dismantling in terms of obamacare. >> if you are keeping score at home, the president is saving christmas but killing obamacare. i think honestly, that was one of the thrusts of the speech. margaret, when we talk about obamacare, in framing it with every other subject he brought u...

A bit in the speech. this was threatened for months, cancelling the subsidies, this divides his party. if you look at republican member, she wrote on twitter this after the president announced it, cutting health care subsidies means more uninsured in my district. the president promised more access, affordable coverage, this does the opposite. what does this all mean? >> couple things, puts incredible pressure on republicans in congress to try to do something to make sure the markets are not destabilized because the insurance companies now are looking at this and anticipate this. this is going ...

Machine, right? and -- >> what? that's breaking news. >> breaking news. get the banner up. >> but let me say this in simple terms. congress can chew gum and walk at the same time. what congress can't do and shown the past couple years, they're ineffective doing, chewing multiple pieces of gum and walking at the same time. >> in congress' defense, it does choke, there's a choking hazard. keep going. i am loving this. >> think of putting seven or eight pieces of gum in the mouth and chewing it, tell me how much fun it is. it is not fun, it is not effective, it is bad. but seriously. that's the s...