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Senate to Vote on GOP Plan to Replace ACA Subsidies; The Coast of 'Buy Now, Pay Later': Total Debt Skyrockets. Aired 6-6:30a ET
Aired December 10, 2025 - 06:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
[06:00:12]
AUDIE CORNISH, CNN ANCHOR: Health subsidies about to expire, premiums skyrocketing. Republicans say they have a plan, but will it actually help you? CNN THIS MORNING starts right now.
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SEN. JOSH HAWLEY (R-MO): Think about the human cost of this. I think Republicans need to offer an alternative solution.
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CORNISH: So, could this come back to bite them in the midterms?
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DONALD TRUMP, U.S. PRESIDENT: Why is it we only take people from (EXPLETIVE DELETED)-hole countries? Right?
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CORNISH: He once denied using that exact language about Haiti and African nations. Now, he said it into the mic.
First, it was a hostile takeover from Paramount. Now Netflix faces a lawsuit over their deal to buy Warner Bros.
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UNIDENTIFIED MALE: We've got to get any videos that do not in any way compromise mission integrity down there. Just get the stuff out there.
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CORNISH: Secretary Hegseth defends the double-tap strike, but it wasn't enough to squash the calls to release that video.
And consumer confidence dropping. Why are people still spending?
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EILEEN HIGGINS (D), MAYOR-ELECT, MIAMI: You chose competence over chaos.
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CORNISH: Another major win for Democrats. They've ended a nearly 30- year Republican stronghold in Miami.
It is 6 a.m. here on the East Coast. This is a live look at the Christmas lights in Minneapolis.
Good morning, everybody. It's Wednesday, December 10th. I want to thank you for waking up with me. I'm Audie Cornish, and here is where we begin.
The Senate is ready to take up a new Republican plan to replace those enhanced subsidies under the Affordable Care Act with Health Savings Accounts.
That means Obamacare recipients would receive federal contributions so that they could pay out-of-pocket expenses.
The top Senate Republican claims that will reduce health insurance premiums, and it will save the federal government nearly $30 billion. The Senate plans to vote on it tomorrow.
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SEN. JOHN THUNE (R-SD): The proposal will put out there will bring insurance premiums down. It will be fiscally responsible, and it will get us away from the practice of giving the money all to the insurance companies, and put it back in the hands of the patients.
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CORNISH: Democrats oppose the plan. They want enhanced subsidies for the Obamacare program extended for three years. And some Republicans are concerned that the issue could become a real liability for them in the midterms.
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MANU RAJU, CNN CHIEF CONGRESSIONAL CORRESPONDENT: How big of a problem would it be for your party if you do not come up with a plan for health care?
HAWLEY: Well, I mean, I -- I just don't know how Republicans would explain that to 24 million Americans whose premiums are going to double.
We need to think about the human cost of this, I think. And Republicans need to offer an alternative solution.
(END VIDEO CLIP)
CORNISH: So, here's why Republicans are nervous. Obamacare enrollment, it's actually up this year over last year. Americans like it. Fifty- seven percent approve of the Affordable Care Act in the latest Gallup poll. All while President Trump is trying to take a victory lap on the economy. He's not offering any solutions, though, for higher prices or those subsidies.
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TRUMP: Now you see the numbers, because your premiums are going up on Obamacare and everything. It's forcing everything up.
But we want the money go to [SIC] -- directly to the people. We want you to go out and buy your own health insurance. And you'll get much better health insurance at a much lower coil (ph). Everybody knows this is the best.
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CORNISH: Joining me now in the group chat, Jasmine Wright, White House correspondent at NOTUS; Charlie Dent, former Republican Pennsylvania congressman; and Antjuan Seawright, Democratic strategist.
I actually want to start with Antjuan on this, which I know you're a Democrat who won't like it. But here's why I'm asking you.
You're calling it a meaningless exercise. But after years of saying Republicans haven't come up with anything, won't come up with anything, why do you think this isn't, you know, something worth noting?
ANTJUAN SEAWRIGHT, DEMOCRATIC STRATEGIST: Well, because people are going -- literally going to die. And Americans are going to become are going to become sicker, because they failed on dealing with the healthcare affordability and accessibility crisis. Keep in mind, this is --
CORNISH: So, you're saying their new plans that basically would put more money in my Health Savings Account to spend on myself is not good enough?
SEAWRIGHT: It's certainly not good enough. And that's why 79 percent of Americans want those ACA subsidies extended, including the 18.2 million Americans in places that Donald Trump won.
[06:05:05]
This is the same Republican majority who put in place the largest cut to Medicaid in American history earlier this year in the Big Ugly Bill: $1 trillion. They -- they put that in the bill, and it will -- we will not feel the impact until after the 2026 election. There's a reason for that.
So, this failure on health care, they are going to have to own it at the ballot box.
CORNISH: Yes. And we did hear Hawley saying that. He has been really beating the drum on health care, in particular.
SEAWRIGHT: And he voted for it, by the way, Audie.
CORNISH: Yes.
SEAWRIGHT: He voted for the Big Ugly Bill.
CORNISH: I want to play something for you, which is Trump at this Pennsylvania rally last night. He went for, like, 90 minutes. He talked about the affordability crisis, briefly. I did not hear any concrete solutions, Ideas, bills, executive orders, which they've been doing left and right. But here's what he did say.
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TRUMP: I have no higher priority than making America affordable again. That's what we're going to do. And again, they caused the high prices, and we're bringing them down. It's a simple message. Lower prices, bigger paychecks.
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CORNISH: The reason why I wanted to play this is because people already have high costs on the things they can't change: food, electricity, housing. Health care is going to be added to this?
CHARLIE DENT, FORMER REPUBLICAN PENNSYLVANIA CONGRESSMAN: Yes, well, look on health care. There is no Republican consensus on what to do about health care.
CORNISH: Say that again.
DENT: There is no Republican consensus on what to do about health care.
CORNISH: So, even as we're about to have a vote, you're saying that doesn't even have the full support?
DENT: Well, OK, let's assume for a second that the HSAs being discussed become law. It would take a while to stand them up. And so, in the meantime, you're still going --
SEAWRIGHT: People are going to die.
DENT: In the meantime, you're still going to probably have to extend the current law. You know, I don't know if it's going to be for one year or two years.
And you have Republicans in the House -- Brian Fitzpatrick, Jen Kiggans and others -- who have bills to extend the subsidies. That's the bottom line.
The ACA, you know, look, it has expanded coverage, but it has not bent the cost curve down.
CORNISH: No, it isn't. But just to talk about this bill, so, this is why I'm coming to you last. Because, you know, people are going to hear this and think, OK, look, they're passing something. And then I went and looked at the fine print and it was like, oh,
those health service funds, actually health savings funds, money that you get can't be used to pay premiums, which is sort of the point of all this.
JASMINE WRIGHT, WHITE HOUSE CORRESPONDENT, "NOTUS": Yes. I mean, I think if you just, like, take a step back, there are five Republican plans percolating in the Senate right now. None of them, to your point, have any consensus.
The Senate, the Cassidy-Crapo bill is going to be voted on, on Thursday. It's widely acknowledged, when you talk to folks on the Hill. We were reporting it on our "NOTUS" newsletter this morning that that won't pass. Democrats have already said no.
It's unclear whether or not Republicans even support that bill.
There are bills going from one-year extensions to three-year extensions of those subsidies. And so, I just think that that there is a fundamentally -- no real idea from Republicans about what they want to do going forward on -- on health care.
And I think that that extends to the White House, because you're not seeing the White House weigh in in a real way that we saw them, perhaps, do it two weeks ago when they let that trial balloon go of what they were going to do --
CORNISH: Yes.
WRIGHT: -- which was extend those subsidies.
And so, I think that you're going to see a real kind of flurry of action over these next two days. But what comes out of it is a huge question mark. And obviously, it leads to --
CORNISH: That's crazy for you to tell me there are five different bills.
WRIGHT: Five. We are reporting there are five.
CORNISH: The one that's closest, you're throwing water on. This is not good.
OK, you guys stay with me. We've got a lot to talk about this hour. Coming up on CNN THIS MORNING, very unsatisfying. That's how some describe Defense Secretary's [SIC] Hegseth and his briefing on Capitol Hill. I'm going to talk to a former Navy SEAL commander, Congressman Ryan Zinke, about the questions he still has about that double-tap strike.
Plus, some light skin care and shoe shopping. What does that have to do with Luigi Mangione?
And Australia takes a major step today to address the social media crisis for kids. Still, not everyone is on board.
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UNIDENTIFIED FEMALE: I think it cuts kids off from the community more than forcing them back out in real life. I think it just cuts them off from -- from support, as well, that they could be accessing.
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CORNISH: Almost 15 minutes past the hour, and here are five things to know to get your day going.
There's now a lawsuit over that Netflix deal to buy CNN parent company, Warner Bros.. A subscriber to HBO Max filed the proposed class action suit on Monday, claiming that the deal would cut down on competition and drive up prices.
The deal also needs to be approved by regulators and survive a challenge by Paramount Skydance, which is also proposing a hostile takeover of Warner Bros. Discovery.
And if you live in Illinois, you're now allowed to sue federal immigration agents for violating your civil rights. Governor J.B. Pritzker just signed the law into effect after ICE agents targeted Chicago in recent weeks.
So, that new law also bars enforcement actions at schools and courthouses.
Pluck eyebrows, change hat, and shoes. Head to Cincinnati or St. Louis. That "to do" list is part of the new evidence revealed in court in the Luigi Mangione case. Police say they discovered the notes, along with a gun, inside his backpack when they arrested him last year.
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UNIDENTIFIED MALE: What's your name?
LUIGI MANGIONE, SHOOTING SUSPECT: Mark.
[06:15:01]
UNIDENTIFIED MALE: What is it?
MANGIONE: Mark.
UNIDENTIFIED MALE: Mark?
MANGIONE: Yes, sir.
UNIDENTIFIED MALE: Mark what?
MANGIONE: Rosario. (END VIDEO CLIP)
CORNISH: And this was the moment police actually confronted Mangione in a McDonald's last year. His lawyers argue that anything found in that backpack shouldn't be admissible, because police didn't have a search warrant at the time.
Mangione is accused of killing UnitedHealthcare CEO Brian Thompson.
And is a new showcase in Paris tempting fate? Police are still seraching for the crown jewels stolen at the heist at the Louvre.
A new royal jewel exhibition is opening today. And it won't be at that museum, but it will be at the Paris gallery famous for its own heist. This one was back in 1792.
The exhibit will have more than 100 pieces, including a giant 57-carat diamond and sapphire emerald tiara that had been designed for Queen Victoria.
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BARACK OBAMA, FORMER PRESIDENT OF THE UNITED STATES: Everybody seems to be working hard. I thought we were going to have a little Christmas party, and everybody's doing their homework.
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CORNISH: So, former President Barack Obama gives Chicago students the surprise of a lifetime. Sporting a Santa hat, he read to the kids and gifted them winter gear and a book to take home.
He is in Chicago this week, checking on the progress of the Obama Presidential Center, where the story time will be offered when it opens next year.
And after the break on CNN THIS MORNING, is Europe adrift? The pope is hitting back as the president casts a grim view of the U.S.'s biggest allies.
Plus, inflation is up. So is debt. So why is everybody spending so much money right now?
And good morning to New Orleans. We're looking at the Crescent City Connection, lit up for the holidays.
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UNIDENTIFIED MALE: Cash or card? Oh, later.
Excuse me?
Oh, I'll just pay later.
UNIDENTIFIED FEMALE: Would you like to split this up into four payments? Yes!
UNIDENTIFIED MALE: Then people could put a newborn baby on a payment plan and some of y'all will eat it up.
UNIDENTIFIED FEMALE: I owe Affirm $2,600. Don't come for me.
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CORNISH: Buy now, debt later. Inflation is stretching Americans thin, and they're leaning on buy now, pay later programs to fill the gaps. And it's not just for major purchases.
People are using these services for everyday items. For instance, groceries, holiday shopping. And the younger you are, the more likely you are to have used these programs.
It's causing the country's total debt balance to skyrocket. That's according to the Federal Reserve. This year's non-housing debt increased to more than $5 trillion.
Now, earlier in the year, I actually spoke with the CEO of Klarna on "The Assignment" on why people are turning away from credit cards.
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SEBASTIAN SIEMIATKOWSKI, CEO, KLARNA: We don't argue that this is necessarily a better product for everyone, but we see clearly with those self-aware avoiders, the people that did overspend, that are tired of the dirty tricks of the banks, but still occasionally need a little bit of credit. They seem to favor this product.
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CORNISH: So, I've got Kate Ashford here. She is an investing specialist at NerdWallet. Thanks so much for being here.
KATE ASHFORD, INVESTING SPECIALIST, NERDWALLET: Sure. Good morning.
CORNISH: So, I want to talk to you about how people's day-to-day money behavior is changing beyond these buy now, pay later -- we're going to talk about this in a moment -- what are the other things people are doing to try and make ends meet?
ASHFORD: Well, certainly, people are feeling the impact of tariffs. We know that NerdWallet in a survey found that 74 percent of shoppers approaching the holidays this year are feeling like tariffs are going to impact their shopping. So, they are cutting back or shopping earlier to -- to try to avoid shortages.
And we know that three-quarters of people are going to use credit cards to holiday shop this year, which is a little concerning, because credit card debt is up overall. Household debt report reports that $24 billion more in credit card debt has been added over this past -- past quarter.
And so, people are still turning to debt, even though they are feeling sort of uncertain about the economy overall.
CORNISH: I know that there are some of these programs that don't charge fees, but are there other ways that these little micro payments, these buy now, pay later programs can add up or cause problems for household?
ASHFORD: Oh, absolutely. A lot of them don't charge fees, but they do charge fees. If you miss a payment. And then you can start accruing late fees or interest. And so, that can -- that can catch you in a bind.
It also is dangerous to use buy now, pay later for too many of your purchases, because it makes you feel like you're spending less money than you are. And you might end up overspending, because you feel like you have room in your budget when, really, you've promised your money to payments over time. And people can get themselves into some heavy debt that way.
CORNISH: One of the reasons why I wanted to talk about this is because I was kind of baffled about, like, how consumer confidence can be down, how people can be worried about tariffs. But there is still all of this spending.
Is all the spending we're seeing in the economy just happening among wealthy people? Like what? NerdWallet when you guys look at who's doing the spending, who is it?
Well, overall, it's interesting because people have mixed feelings about the economy. When we ask people how they feel about their finances going into 2026, we see that 35 percent of people say they feel confident, 35 percent of people say they feel optimistic, but 32 percent feel anxious and 30 percent feel stressed.
So, there's really -- it's a mixed bag. And people talk about the K- shaped economy. That's really what we're seeing here is that things are getting better for folks on the upper levels. Things are sort of slowing down for people in lower income levels.
And so -- but -- but people are still spending. It is the holidays. So, I think we're seeing credit card debt rise and buy now, pay later behavior is -- is growing.
[06:25:06]
So, folks are still spending, but they're putting money in places where their debt is going up.
CORNISH: What's your No. 1 recommendation from NerdWallet about how people can ride out the next couple of months?
ASHFORD: Oh, certainly. Spend what you have on hand. Try not to spend what you don't have to give away. Be mindful about your holiday budget this year and mindful about your spending, and try not to put yourself in too much of a hole going into 2026.
CORNISH: OK. Kate Ashford, thanks so much for your time.
ASHFORD: Thank you for having me.
CORNISH: Straight ahead on CNN THIS MORNING, should that video of the double-tap strike be released, or does that compromise the mission? I'm going to talk to Congressman Ryan Zinke next.
Plus, an historic win in Miami. The city elects its first female mayor.
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HIGGINS: And you made this moment possible.
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