• With: Gov. Dave Heineman

    This is a rush transcript from "Your World," April 10, 2013. This copy may not be in its final form and may be updated.

    NEIL CAVUTO, HOST: And all this time, I thought it was just a pathetic problem-pocked piece of legislative you know what. Well, it turns out the health and human service secretary says it's Republicans who are making the health care law the mess it has now become.

    (BEGIN VIDEO CLIP)

    KATHLEEN SEBELIUS, U.S. HEALTH AND HUMAN SERVICES SECRETARY: The politics has been relentless and continuous. It's very difficult when people live in a state where there's a daily declaration, we will not participate in the law.

    (END VIDEO CLIP)

    CAVUTO: And this whole fat thing, it's a thyroid. It was a problem as a kid. Anyway, are you kidding me?

    To the Republican governor who says he's not the problem, Republicans are not the problem, she is, the White House is, this law is, Nebraska Governor Dave Heineman.

    Governor, what did you make of that?

    GOV. DAVE HEINEMAN, R - NE: Well, I don't agree with her.

    The American people are opposed to ObamaCare. They were when the law passed, they're still opposed to it. But the fact of the matter is it's got to be implemented. We're trying to do our part even here in Nebraska. It's very, very difficult. We can't get answers out of them. The Obama administration has already said they're going to delay the small business exchange part of it. The actuaries are saying health insurance premiums are going to go up dramatically, in spite of the fact that President Obama said they would go down. So there's problem after problem with this new federal health care law.

    CAVUTO: The issue isn't so much Republicans and whether they liked it or not. Most of you guys obviously didn't like it. But the premium rise that we have seen, the cutback in care that we have seen in a lot of places, the device tax thing that has gotten to be a real problem for a lot of folks, that is something that was not a Republican invention. That was something that Republicans rejected.

    But it seems to me, the early betting is that if there's problems with this, as the problems materialize, they're going to blame it on you, they're going to blame it on Republicans. What do you think of that?

    HEINEMAN: Well, I don't think that's a very good idea.

    I don't think it's a fair idea. This is a huge undertaking. I can tell you already as we try to work with the Obama administration, they don't have the technology in place to implement this next January 1. We're headed for a nightmare, a disaster when this program comes up next January.

    And it's the administration's fault, not the states'. And, again, we should have never headed down this route so quickly. I'm very, very concerned ultimately, as Medicaid costs increase in my state and most states, it's going to reduce funding for state aid to our public schools, to our higher education institution or higher taxes on the middle class that President Obama said he didn't want to do. And that's exactly where he's headed.

    CAVUTO: Do you think though that anyone appreciated the size of those premium hikes, the number of workers who would be jettisoned and taken off payrolls because they would have to be covered so a lot of their employers said we're not going to cover you, that this is far bigger than almost anyone predicted?

    HEINEMAN: It probably is, but there were plenty of warnings how difficult this was going to be.

    CAVUTO: Yes, indeed.

    HEINEMAN: And it was going to be very, very costly.

    And then now, even Democrat senators want to repeal the medical device tax. Well, how are you going to pay for all this?

    CAVUTO: Right.

    HEINEMAN: And so it's going to be a cost shift to the states, and we can't afford it.

    CAVUTO: Governor, good seeing you again. Thank you.

    HEINEMAN: Thank you, Neil.

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