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Romney Healthcare Adviser: ObamaCare Based On RomneyCare

Lawrence O'Donnell, MSNBC host: "Alright, come on. Come clean. You were in the room with President Obama discussing healthcare reform and you did in fact work with the Romney administration in Massachusetts. Come on Professor, you've got to tell us the truth."

Jonathan Gruber, MIT professor: "The truth is that the Affordable Care Act is essentially based on what we accomplished in Massachusetts. It's the same basic structure applied nationally. John McDonough, one of the other advisers,who work in both Massachusetts and advised the White House said 'it's the Massachusetts with three more zeros.' And that's basically a good description of what the federal bill did."

Gruber says Massachusetts received some federal funding for Romney's healthcare reform, meaning all U.S. taxpayers chipped in to fund RomneyCare.

O'Donnell: "And Massachusetts had a pretty good rate of coverage before you even went to the mandate. Romney makes a very strong point about the Obama bill is full of taxes to pay for it and the Romney bill did not have tax increases in it to pay for it."

Gruber: "Yeah, that is just technically true but intellectually not really straight forward. Basically, in Massachusetts, the financial for our bill came half from the federal government and half from an existing tax that former Governor and presidential candidate Michael Dukakis had put in, in 1988 to finance care for the uninsured. You see, we didn't have to raise taxes in Massachusetts because money was already there. At the federal level we didn't have that luxury. It wasn't like China was going to come and pay half the cost of the Affordable Care Act. There was no bigger government coming to help us out. And so we need to raise taxes so we can finance it."

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