WALLACE: I want to press on this point of pre-existing conditions. Because the Republican bill says states can get a waiver ― let’s put this up on the screen ― States can get a waiver from Obamacare protections if they explained to federal bureaucrats how the states will maintain access to, and this is the key phrase, “adequate and affordable health insurance coverage for individuals with pre-existing conditions” without ever explaining what adequate and affordable coverage is. And then on the very next page, the Graham-Cassidy bill says that “Yes, states can increase premiums for people with pre-existing conditions.” That’s a loophole large enough to drive a tank through.

SHORT: Chris, those are two separate questions. Do you want Washington, D.C., choosing all the rates across the nation for all sorts of factors. That is a different question than guaranteeing pre-existing conditions. The bill guarantees pre-existing conditions.

WALLACE: No, it doesn’t. No, it doesn’t. It just says that all they have to do is get a federal waiver that they have adequate and affordable coverage without ever explaining what “adequate and affordable coverage” is. That is not a guarantee.

SHORT: Adequate and affordable coverage will be guaranteed to everyone of those states that apply for a waiver.

WALLACE: What’s the definition of “adequate and affordable” and what does it mean when a state can raise premiums?

SHORT: That is a separate question. Do you want Washington, D.C., dictating across the country what those rates are for everybody regardless ―

WALLACE: What good is insurance coverage if you cannot afford to buy it?

SHORT: Because you are also providing additional financial support to those states so they can make sure those rates stay low for all different individuals and all different classes, including those with pre-existing conditions, Chris.

WALLACE: Well, there is no statement as to how much that is gonna be and in fact, it says states can raise premiums for coverage for pre-existing conditions without any guidelines. There is no question that is going to be higher in some states than it is under Obamacare.

SHORT: There is going to be some states higher, some states lower, Chris. Do you want Washington, D.C. ―

WALLACE: So if you have preexisting conditions in a state that’s higher, you’re out of luck?

SHORT: No, you’re not necessarily out of luck Chris. You’re gonna make sure that the vast majority of Americans are gonna benefit from lower costs. It doesn’t mean that every single individual will have a lower premium, because that is not what we want Washington, D.C. doing. We want states to have the flexibility to determine that for their own people.