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The important point is it's not going to be strategic. that's not a very good thing. it's not just medicare benef beneficiaries. in the sequestration, lots of other programs get hit. so you've got to be very careful, here, plus the republicans constantly say we don't want to become like greece. what's driving off the fiscal cliff look like? it makes us look completely irresponsible as if we can't control our own spending and put in order some priorities. >> so some health care will be suffering? >> that's absolutely true. we want to incentive doctors ask hospitals to keep people well. not to j...

That's going on. it's a doable task. >> reporter: the new insurance exchanges, however, will also require a massive new software system so insurers and state and federal governments can all be on the same page. >> another glitch is that the exchanges have to have electronic software, and the federal government has to approve that software, and it still hasn't done so. so we don't even have the software ready to do what's supposed to be done in the exchange. >> reporter: so many, many more things to do before next october. analysts say the administration had plenty of time but postponed some of...

>> susan rice would have to be confirmed by the senate. democrats still have control of the senate. it may be how the battle shapes up. if in fact susan rice is dominated. >> back to you. >> doug luzader live from washington thank you. >> oo the top five stories making news at this hour. obama care new regulation will go into effect. most of the focus is on how state based insurance exchanges will go. how the government will tax medical devices and allocate the shrinking pool of money for hospitals who treat the uninsured. >> congress launching an investigation as to whether johnson has been u...

Insurance exchanges? the state can do it alone. or it can be done by the federal government, or the federal government will do it for you?ç okay, you can kwoordinate with the federal government or they'll do it alone. as for medicaid expansion, do republican governors really want to deprive their citizens of benefits they're entitled to? and hold it right there, you mean to tell me that no one in louisiana paid federal tax? and when there's a law passed by the congress or representative of government, they shouldn't have it? their government -- their governor should do a government takeover ...

You can't take away the existing funding for medicaid that the states have been relying on for all these years. bill: the states claim that this threat, meaning a threat of medicaid expansion serves no purpose other than to force unwilling states, of which there are many, perhaps a couple dozen if not more, to force unwilling states to sign up for the expansion and healthcare coverage affected by the act. given the nature of the threat and the programs at issue here we must agree. >> reporter: the threat is the threat to take back from the states other dollars that the federal government is co...