This is a rush transcript from "Special Report," November 20, 2013. This copy may not be in its final form and may be updated.
(BEGIN VIDEO CLIP)
PRESIDENT BARACK OBAMA: We are not going to gut this law. We will fix what needs to be fixed but we're going to make the Affordable Care Act work. And those who say they are opposed to it and can't offer a solution, we'll push back.
(END VIDEO CLIP)
BRET BAIER, ANCHOR: President Obama. So what about solutions. We're back with the panel. OK, Tucker, what happens? What do you do?
TUCKER CARLSON, FOX NEWS HOST: Well, the first thing you do is acknowledge that all progress is incremental. The comprehensive solutions to anything never work. ObamaCare was never going to work simply because of its size, its scope. Its ambition was just grotesque.
So you repeal ObamaCare and you fix health care piecemeal. There are a lot of thing you can do. You can allow the sale of health care plans across state lines. Thanks to lobbyists that's now illegal, so the states have a captive audience. And it eliminates competition and drives prices up. And you can eliminate all health insurance mandates, again, the product of lobbyists. That's why we have them. A lot of people will buy the plan that best suits their needs. Tort reform, obviously. And then finally, the tax code ought to treat all health insurance plans equally. There's no justifiable reason for employer provided plans to be taxed at a different and lower rate from individual plans. It's not justified by any kind of rational argument.
BAIER: So, that does upend and system and the 80 percent who get their health care now from their companies it would affect directly?
CARLSON: Of course, it would. I mean, of course, it would. But the current system is unjustifiable. Look, you can't have a system where costs are completely hidden from consumers. People have no idea what health services cost.
BAIER: In the ideal, but in the political environment and what Republicans are facing is that --
CARLSON: That's why you do it piecemeal. Anytime a politician looks into the camera and says I'm going to fix all your problems with one stroke of a pen, this bill will save your life, he is lying. And by the way, he had a totally inflated sense of his own power. That's now how it works. Do it bit by bit.
JUAN WILLIAMS, SENIOR EDITOR, THE HILL: Stop talking. Stop talking because you are damaging your reputation with your fellow conservatives, because what you just laid out is the most radical plan I ever heard. You're going to go after --
BAIER: Not yet. You haven't gotten to the Judge.
WILLIAMS: Here I am, and I just have some simple ideas. I feel sort of ashamed at this point.
BAIER: Well, we have still have a graphic for you.
WILLIAMS: I think we should fix the website. Make sure it works so the people who are interested in getting health care through the website can get it.
Number two, I think that you've got to deal with the insurance companies, which the president was doing today with the commissioners. I think you make sure that when you talk about allowing people, for example, to keep these canceled plans that it doesn't cost the health insurance companies then to turn into enemies of health care reform and lose money.
BAIER: Does that include more subsidies?
WILLIAMS: Potentially. But what it really includes is allowing them then to structure the cost in such a way that it doesn't lose money.
And then the final thing, and I think this is really important. The president touched on this yesterday, Bret, when he was talking about the Wall Street Journal forum. They're going to rebrand and re-rollout ObamaCare at some point because he says the political opposition is so large. What he has got to do is rebuild trust. We see this in the polls that indicate there has been tremendous drop in trust of President Obama and confidence in this health care system. So he has got to do a big job of rebuilding that trust.
BAIER: OK. Lay it on them, Judge.
JUDGE ANDREW NAPOLITANO, FOX NEWS SENIOR JUDICIAL ANALYST: Juan, fasten your seat belt. The federal government should stay within the confines of the Constitution. The Constitution does not authorize the federal government anything whatsoever to do with health care. SO ObamaCare should be abolished along with Medicare, Medicaid, and Social Security. But the people who were on those programs should be grandfathered in because they paid money to be in there and they have ordered their lives to stay there. The states should regulate health care because the states retained that power under the Constitution. So, if you want.
BAIER: Leave that graphic up there.
NAPOLITANO: If you want mandatory health care go live in Massachusetts. If you want the free market and individual savings accounts, financial money savings accounts, go live in Texas. As Uncle Ronnie used to say, you can vote with your feet.
When the government attempts to do what only the free market can do, when the government says everybody has got to drive a Mercedes whether you can afford one or not, whether you want to drive one or not, very few people will have cars and everybody will be walking to work.
WILLIAMS: Let me just quickly ask -- you mean to say you want to do away with Social Security, Medicare, and Medicaid?
NAPOLITANO: Absolutely, because the Constitution doesn't authorize it and it would be far better administered by the states and by private enterprise.
WILLIAMS: Did you hear what Bret Baier said about the politics? You think you can do away with Social Security and Medicare in this country?
NAPOLITANO: I don't think it could be done with the stroke of a pen and I don't think there is a consensus for it. But in my world, where the government lives within the confines of the Constitution, people are responsible for themselves. It's not the beltway world where you live. People don't look to the federal government to take care of them.
WILLIAMS: I think the voters would go crazy. The two of have you abandoned the whole notion of conservatism tonight.
NAPOLITANO: You have abandoned the notion that the Constitution means what it says.
BAIER: We have more of this in the online show. And it should be heated.
BAIER: That's it for the panel. But stay tuned for some highlights of a former president's stop by one late night show. Plus the SR Bing Pulse highlights. Don't forget the online show tonight.
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