aare very caloric. brian: t. boone pickens will be joining us on "brian and the judge." [laughter] [captioning made possible by fox news channel] captioned by the national captioning institute --www.ncicap.org-- bill: we begin with a fox news alert. waiting for news from the senate and house of representatives on key health-care negotiations under way. several holdouts in the house, the senate is taking a new look at taxing or health care benefits, ultimately paying for the massive overhaul. 17 days in the democratic health care countdown as we work our way to the august recess. new developments breaking all day, the states could not be higher for all of us. wow. [laughter] hope that you have your breakfast. megyn: some of the biggest

stumbling blocks to the president's health care push coming from his own party this morning. moderate democrats worried about that $1 trillion pricetag on health care plan, nervous that there are not enough efficiencies in the bill. how will this affect the overall economy? there is concern that there will be a canadian-style nationalization of health care. bill: mike is reporting from the white house this morning. these key democrats have not signed on for the deal, how tough is that? >> sounds like there is a lot of work to be done of the wa. they want to know what work has to be done. >> how do you constructed piece of legislation so that it achieves what you want to achieve and reduce costs.

a budget neutral piece of legislation. tough >> that congressman says tha better bill is what is needed. democrats like that gentleman, the president will be making his pitch today. bill: the president suggested that there could be wiggle room on the timing of getting health care reform done. tell us about a shifting deadline. >> that is right. the president wants to get this done before august recess. the concern is that when lawmakers go home they would get an earful from constituents on health care reform, they might not be willing to vote when they come back. the president says that if lawmakers need a couple of every -- a couple of extra days, he will do so. his top priority is getting it

done this year. bill: thank you. megyn: the senate is taking a new look at taxing health benefits. fox news is confirming that a huge -- a version of that is in the senate weeks after leaders seemed to drop it. max baucus, reportedly considering a new tax on generous health insurance plans. offered by employers as an alternative to the income tax hikes. the house is considering hiking income taxes, and the senate is considering the alternative, creating a tax under health care benefits. that was killed early on, the main proposals initially, then picking up traction but killed because of the unions, who have

nice health care plans, they came out and said that they did not want this. president obama and top democrats said never mind taxing health care plans. back on the table now. president obama signaled that he is open to the idea, which he attacked during the presidential campaign. we will see where the white house and democrats, out of it. bill: primetime, wednesday night, major networks will be shifting to cover the exposure of the event. it shows you how much is on the line. megyn: president obama is trying to regain control on this debate, his numbers on health care of all that -- are falling precipitously. tomorrow night he is trying to get you back on his side.

bill: government spending is driving the deficit to new records. the white house is projecting deficits for 2009 to reach 1.84 trillion dollars. they are delaying release of the budget data, expected to happen about one week ago. why is this happening? did it happen in the past? it had moved from july to mid august. megyn: did a federal agency pull the plug on a potentially life- saving study for political reasons? the national traffic and highway administration for safety planned a massive study of the dangers of cell phone use while driving. it never happened. a new report said that the study was canceled to avoid a headache on capitol hill. good morning, kelly. why were the -- why was there so much concern over members of congress getting angry over information that could possibly

save lives? kelly: let's put it out there right now, it is commonly known, talking on your cell phone, even hands free, while driving can be deadly. what we're hearing now is that certain government agencies kept important data on the concern under wraps so as not to invent -- not to enter congress. the answer is in a body of research that is reportedly being released today. the group claims that the former head of the national highway traffic and safety administration was urged to withhold research to avoid antagonizing congressional members who reportedly instructed the agency just to stick to the mission of gathering data, not bugging the states with lobbying efforts.

megyn: why would congressional leaders be opposed to a safety study, regardless of what it could conclude? texting or talking on the phone while you drive, not the safest thing. why would lawmakers object to the release of such a study? kelly: a good question. the center for auto safety made a freedom of information act requesting this information in order to get a 2003 study that they claimed involved 10,000 drivers that focus on cell phone use. the agency wanted to say that the study was supposed to look at the serious and growing threat of america's roadways. this 2003 review that we are talking about, it may not make roads safer, but the question is if it was ever done. we are trying to find where the rubber meets the road, there are reports that it never got done.

we have not heard anything back from the agency itself. bottom line, you would think that most members of congress would be concerned about this. megyn: this has been a big issue in a lot of states. it is not always the most popular, but it seems readily apparent. do not put on mascara. do not shave. lots of things to you should not be doing behind the wheel. bill: wait a minute [laughter] when was the last time you were shaving driving down a highway? [laughter] bill: lawmakers are trying to hammer out how to pay for the president's health-care plan. there is news that the white house is delaying the release. what is the holdup? why are they keeping it under wraps? dana perino is our guest with

possible explanations. megyn: public deejays, expecting delays, lost luggage, no one expected the crazy seen that happen upon on board this southwest airlines flight to indiana. passengers screaming and climbing on their seats in that little of a flight. we will show you why. ♪ are you receiving a payout from a legal settlement or annuity over 10 or even 20 years? call imperial structured settlements. the experts at imperial can convert your long-term payout into a lump sum of cash today.

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right now, all over the country, discover card customers are getting 5% cashback bonus at the pump. now more than ever, it pays to discover. bill: we have live pictures coming back from the white house in washington, president obama coming back from a closed-door meeting with moderates that want to slow down the march to health care that will pay for a trillion dollar overhaul. meanwhile, the president's mid- summer update is usually do right around this time, we have word that it is delayed.

why? dana perino is with us, and fox news contributor. welcome back. >> good morning. bill: i take the headline at face value. why this delay? >> sometimes these things are not ready by july 15, as robert gibbs pointed out. in the first years of clinton and bush they were delayed. a key difference, during those times, bush and clinton were not asking the country to pay for a $1 trillion health care bill. i think that the members of congress are going to balk at this. now they say they have been complete information? if i was a member of congress i would say that i could not possibly vote for this with incomplete information. bill: based on that answer, one would think that things were worse than they appear.

>> that is the only conclusion that we can draw. hopefully that is not the case. bill: this is critical to the health-care debate, because you are talking about costs. if you delay it into august, thinking that you can get a vote before the recess, maybe you bury the bad news? does that sound logical? >> that is a very far-fetched idea, they are not thinking that way. i think that they be mistaken. the momentum against the bill is growing. 70% of americans are held -- happy with their health insurance, no one is happy with the status quo. people are ready for reform, just not in this format. last night i was saying that i think that barack obama has incredible good will with the american people and that one of the things that he can do is hit the pause button and tell

members of his administration not to take their vacation, come back in september and try again. bill: will congress go for that? >> not many members are going to want to take a vote. on the house side, if you do not think that the senate is going to vote as well, you will feel hung out to dry. they might be pushing the senate to go first. i do not think that will fly before the august recess. bill: the house wants to figure out what they want to do on taxes. i believe that is being talked about. you said something in your first answer, bill clinton was late in his budget, george bush was laid in his budget. 2001? >> i was not there at the time, but it might have been a technical problem.

again, neither bush or clinton at the time was asking for a major piece of legislation. it seems like the administration, even if this is not true, the perception is that they're hiding something under the rug, asking members of congress to take a tough vote on a health care reform bill. bill: it appears that any form of legislation that might take money from the pockets of the american people, lawmakers are running from that, especially in the middle. moderate democrats are getting an earful from constituents, and that is the message they are taking back to washington. >> people are willing to have a discussion about health care reform. i do not know of anyone that thinks that the status quo is ok. when the white house says that some people are just against reform, i do not know who those

people would be. they are against raising the deficit to an unsustainable level. you are talking about $1 trillion for the next decade. what is after that? bill: a great point. we can get into that discussion the next time did you get back. does the president changed the discussion tomorrow night? >> i think if he is going to pull a rabbit out of his hat and i do not know what they have left. bill: thank you. megyn: ever spend so much time at work that you feel like you live there? more than a feeling in california. workers at lax are calling this parking lot home. bill: say hello to my little friend. loose on a plane. a scorpion, two on said here but a very different kind. -- on set here but a very

different kind. got a question that you want answered? hemmer@foxnews.com, give us an e-mail. back in two minutes.

bill: checking on the headlines from around the world, growing concerns in the nuclear ambitions of in the country formerly no. -- formerly known as burma. a north korean freighter was forced to turn back a couple of weeks ago. there is more evidence of the military relationship between the two companies -- countries. hillary clinton takes that issue up in thailand this week. jakarta, indonesia, check this

out, local television releasing the first pictures of the suspects from last week's homicide bombings that targeted two american hotels in that city. the twin blast killed nine and injured 50. megyn: there you are, settling into your seat for a nice long flight, then you hit the business end of a deadly scorpion. it happened on a southwest airlines flight. heather mack williams has the details from phoenix. >> this long flight from phoenix and indianapolis was almost over when a passenger saw something dropped from above. >> i felt something crawling up my leg. i went to sweep it, that is what i was stunned. >> right between his fingers, and excruciating pain. unfortunately, what some him was not a be.

scurrying around his feet was none other than an arizona bark scorpion, which he immediately killed. >> you could see a line of denim like that. >> his 10-year-old son opened up their compartment and next to the luggage, several more. >> a few babies, one of them had died in the bottom of my bag. i killed them both. >> the situation created a commotion. >> everyone was getting on their chairs. >> to raise questions as to how they got on board to begin with. >> you do not expect that when you reach up to read your bag. >> the passenger renters security like everyone else, not one of these six scorpions were ever detected in the x-ray bag. >> could i have transported

these? maybe, but my dad was zipped up. >> they would not have shown up on extra anyway. >> these things are built to hide. they could be in a suitcase and you will never find them until they find you. >> under the age of six? it could be deadly. >> there were a few a long time ago. >> thanks to the quick thinking, passengers were able to get off safely with a story that they will never forget. >> awesome. >> look at that. [laughter] bill: do you get double the sky it points for that? megyn: i cannot believe that. that was a nice report from heather mack williams, from wxyn. thank you for freaking out, on

behalf of the nation. bill: how quickly can we land? megyn: that is what i would have asked for. bill: there has been a lot of talk about a controversial element of the health-care debate. using taxpayer money to fund abortions. megyn: at the top of the hour we showed you have a key government agency changed -- killed a study on cell phone driving injured. what does washington do next about cell phone use in cars?

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car insurance company in the nation. but, it's not like we're kicking back, now, havin' a cuppa tea. gecko vo: takes lots of sweat to become that big. gecko vo: 'course, geckos don't literally sweat... it's just not our thing... gecko vo: ...but i do work hard, mind you. gecko vo: first rule of "hard work equals success." gecko vo: that's why geico is consistently rated excellent or better in terms of financial strength. gecko vo: second rule: "don't steal a coworker's egg salad, 'specially if it's marked "the gecko." come on people. bill: we are waiting for news on health care reform from the

white house and key house democrats looking for better cost control returns, on the table, expected to cost more than $1 trillion. the meeting with the president today, with the blue dog democrats. as far as we can tell, not one of them has signed on, and that is critical to getting this passed in the house. stay tuned, we are all over it. megyn: the white house is leaving open the possibility that the final health care reform bill will require abortion to be funded by taxpayers. bad idea adding fuel to the fire in the health-care debate. there is nothing in the current proposals about using federal dollars for abortions. pro-life advocates in congress say that without a specific ban written in, that is what we will get. julia is the spokesperson for the abortion rights action league.

she is in favor of using taxpayer funding for abortion. which is a possibility. >> good morning. megyn: we had a lawmaker republican on yesterday was very opposed to this idea. right now the administration, recommending minimum benefits for health insurance provided. taking the choice away from insurance, saying that these are things you must find. basically, unless you write in, you cannot require insurance to pay for abortions, but that is where we are going. you think that it is a good idea. why? >> in order to cover 45 million uninsured americans, we would have to move forward with the president's proposal one way or another. it is very expensive not to

cover them, as you know. what they are objecting to is that there is nothing specific restated against the option for a woman to have family planning services in there, including abortion. they would like to add language that specifically restricts it. there is no language saying that you have to do it, but the other side says that specifically if we do not have language specifically saying that they cannot do it, they would possibly be able to offer those services with that taxpayer money. medicare republicans that are pro-life, their point -- megyn: republicans that are pro-life, in the health care reform bill there is a provision that says they have a list of the services you must provide funding for. in that list is reproductive

services, something broad, leading these folks to fund abortion. they're saying that they do not want that, confusing reproductive services like counseling with abortion. they have made that clear. many pro-choice democrats are saying that it is not a bad thing. that we should have taxpayer funded abortions. >> the language being used calling it taxpayer funded abortions, we are talking about is health care subsidized by taxpayer funds which, in the long run, will save the country money because they will not pay for people using emergency rooms as the primary means of health care. megyn: this particular debate is not about saving money. it is about people who are pro- choice in this money that cannot 11 penny of their taxpayer

dollars going to funding abortion, which they believe is murdering a baby. >> there are a lot of services that one gender or another gender does not need that are funded by the federal employee health benefits. this is an example of something covered under the hyde amendment, passed in 1995, saying that anything for medicaid -- a woman covered by medicaid, she cannot use any funds for abortion services. megyn: which is taxpayer money? >> which is what you are saying, basically saying that these are people making $20,000 or less per year for a family of four. these women are not allowed to plan their families. if they need an abortion, they cannot have access to that.

even if they could, 70% of the counties in this country do not offer the service. i understand that there are a lot of things that the anti- choice, a pro-life, however you want to phrase it, are opposed to, but that does not mean that what we are talking about in the current health care plan, which is not finished, would specifically require -- megyn: you already made that point. i pointed this out, the white house pointed out that it is a possibility. it has already been said to be a possibility. the debate is whether that should be a possibility. even if you are pro-choice, which you obviously are, you have to understand the objection of the other side. they believe that it is baby murder. they do not want their dollars going to it. they would say to the medicaid

patient, sorry you got yourself in a situation where you want an abortion, but if you want that you have to find your own money to do it. there is a huge mass of people about to be insured by the obama administration, that if you want to kill your baby, you have to do it without my taxpayer money. why is that not reasonable? >> i did not say that it was not reasonable for people to be able to think that, but the law in this country is that abortion is legal. it should be safe and legal. we need to agree that it is safe, legal, and where people who believe that abortion is murder are still under the same country and the same laws that have been a loss since 1973 under roe vs. wade -- megyn: but they are not arguing about whether it is legal, it

is about paying for an elective procedure that they are not saying that you cannot get it, but they are saying that they do not want to pay for it. >> well, again, i know you do not want me going back to this, but it is not necessarily -- let's separate one thing. public and private health insurers would have to pay for basic care. they need to make a decision about whether it is public health care that will receive funding and if you are under a public funded health care, or would it apply to private insurers? i understand that the other side would be very concerned about what would happen with that particular issue. i am not saying that we -- and the two sides cannot understand where the other is coming from, but in some cases in this country what we are talking

about with taxpayer money -- megyn: you are going back over brown we have tread. the question that people have it is now that we are going to government funded insurance for many people, will those people be related to the same restrictions? maybe not, open to the possibility for taxpayer funded abortions in this country. quick final word. >> republicans and democrats on both sides are pro-choice and pro-life, they will have to come to an agreement. while we understand where the other side is, we need to keep moving forward, making sure that 45 million uninsured people in this country are covered one way or the other. megyn: i appreciate your coming on. all of the best to you.

bill: one day, human stem cells may be widely used to cure deadly diseases. the controversial use of cells from human embryos has prompted others to turn to adult cells. david lee miller is on the story. good morning. how great is its potential for adult stem cells, scientifically? >> this technology to revolutionize medicine today. virtually all major diseases to be treated. people suffering from alzheimer's, cancer, even spinal cord injuries. this technology was developed two years ago and specific advances have been made. there is no moral debate about funding it. bill: the technical name for this is what? >> the technical name for this

is ips. it is something that everyone should remember, because one day it could save your life. a patient with a disease or an illness as a sell removed from their skin. then, a laboratory takes it, let's say that it is a skin cell, exposing the cell to chemicals and converting it into a stem cell that has a unique quality, it can be reprogrammed and turned into brain cells, lung cells, part cells. those new specialized cells could be used to treat a patient. unlike cells that come from a donor, there is little risk of rejection. very good news, potentially. >> a huge advancement. how soon will people be treated? >> these cells are being used to

test drugs in the lab. experts predict that it of the year is, if not decades, that these cells could be used. one of the major hurdles that they have to overcome is to make sure that the newly generated cells are disease-free and do not actually harm a patient. out there in the medical community there is a great deal of dramatic breakthrough speculation. bill: thank you. megyn kelly? megyn: california lawmakers finally reaching an agreement on how to close their budget gap without big tax sites. how on earth did they pull that off? we will tell you. bill: new details after the break, and a government cellphone study that was critical. it is this, did it cost human lives? check out foxnews.com the story.

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megyn: california might be getting near the end of its budget crisis, reaching a deal with leaders to close the $26 billion budget deficit. both houses need to approve the deal so that they can stop sending out iou's to their vendors. the plan calls for $16 billion in cuts, education and prison budget taking the biggest hits. shifting money from other government accounts, speeding up some tax collection. not new tax hikes. how about that? wow. bill: getting it done in california.

shocked. as you mentioned earlier, the house -- highway safety agency put away plans for a massive study on highway safety behind the wheel car. that study has been made public thinks the two consumer advocacy groups should the agency go ahead. what could it mean for you, the driver? gary, thursdays at 5:00, tuna in. listen, this study looked at 10,000 drivers, apparently. far as i can tell, they have all the data, it was this ever compiled. now we were told that talking on the phone while multitasking could be as harmful as strong driving. >> something we have seen in countless private industry

studies since then. but this is the first time that a government agency came to the same conclusion. at the time they said that 60% of drivers in all given accidents were on the fall in 2002. 240,000 accidents, 1000 deaths, seven years ago. bill: cell phone use has gone up since then. >> -- at least. bill: 950 that it -- 950 fatalities. why were we not told this? >> at the time, they were for some reason concerned that they would be appeared as lobbying for particular issues rather than a blind agency. they had drafted, according to this report, a letter for leon panetta to give to the governors of the state saying look, we found out that it is not the hands free laws that are the solution, the problem is people talking on the phone. we might have to look into

making those not work in your car. bill: before we go there, handsfree information is critical. big proponent. make sure that you are not looking at your phone. they found in this study that that was not a critical element? conversation is what got you in trouble? >> more the focus of a conversation on the phone, rather than having your hand up to your ear. drinking a soda is not as bad as having a conversation. bill: talking on the phone, those motorists were four times as likely to have an accident as someone listening to the radio. >> the idea that the government found this out seven years ago and did not tell anybody is surprising. bill: what is your theory about why they would want this to be handled by the states and not come out of washington, d.c.? >> they simply did not want to

be the ones to tell the states to handle it. there was a concern that they would appear to be lobbying on their own behalf, on behalf of the government. they decided to hold back. bill: you are the automotive expert. we have this information. what do we do with it? >> again, this is not a surprise. the is it -- the real issue is all this technology. there is a bill in new jersey that would ban programming navigation systems while you are driving. every state has different rules. at some point the federal government might have to take a look at this. bill: how do you enforce that? >> if you are in the age of the line, there is no passenger in your car, the feet -- police have to get lucky to stop you. bill: no texting while driving?

>> what is to say that i am not just reading directions. i could be holding a piece of paper. bill: good point. thank you, gary. we appreciate your insight and expertise. megyn: new reaction after a dustup at a senate hearing last week where barbara boxer was accused of playing the race card. >> just so you know, he would be proud that you were here. proud, that is what i am saying. >> i do not like it. it is racial. bill: that is where it began. >> william la jeunesse, he has a story of william la jeunesse and airline employees. >> this looks like a rv park, but this is a neighborhood for pilots and mechanics. where are we? in the shadow of lax.

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megyn: some people say that the terrible commute in los angeles makes it a giant parking lot. imagine if your home was a los angeles parking lot. that was the case for about 100 people that live at lax. flight attendants, mechanics, even pilots. william la jeunesse joins us from the community at lax. william, why do they live there? >> because it is easier and arguably safer than commuting 45, 6, 7 hours, then jumping in the captain's seat of a 747.

there is a waiting list to get into this airline is shantytown. believe it or not, the runway is right over here. you can see the westin hotel from here. there is the tower in the distance. about every four minutes, an airplane goes overhead. after 9/11 there was a lot of bankruptcy and reorganization. as a result, more and more pilots and flight crews had to commute. coming from montana, alaska, hawaii, then doing their normal duty. there is a lot of tea involved. lax set up this one-of-a-kind program where these guys have campers, winnebagos, sometimes as little as 20 square feet, they would rather do that then come in from long distances in and be fatigued.

the choice between a crash pad or a commute, this is a better alternative. >> we referred to it as hot wracking. the first one in fixes the bed, the next one is eventually on the floor. >> not that great to live in a parking lot. lots of noise, lots of traffic. we get the smell of burnt rubber when the wind is blowing right. never buy it. very hot. >> that first guy, and mechanic from indianapolis, because of changes he decided to have ample rv here. other guy is a pilot from montana, on call for seven days straight. megyn: do not be calling it a crash pad right next to the runway. [laughter] speaking of which, you can see the runway.

any safety concerns? >> they say that it becomes like white noise. i cannot believe that, because -- when they go overhead and we have not had one yet, a blessing in disguise. after 9:00, they start coming from the ocean, which helps. they say, again -- that crashed in buffalo, the fatigue the pilot was coming from seattle. they say that they feel really fresh. the airline noise, loud as it is, they become immune. megyn: tip of the hat to them for taking it on the chin. for our safety. so that we can be more say in the air. i applaud them. those rv's can be darn big. just do not call them crash pads. >> other airports have started the same kind of program. bill: great news.

we are moving to the airport parking lot. [laughter] megyn: check this out. caught on tape, an unbelievable story. it is at the center of a potential loss of between his officer, a son, and a famiphilly cop. bill: wait until you hear what the nation's leading medical group is saying about the democrats medical health takeover plan. >> let's fight our way through the politics of the moment and passed reform by the end of the year -- and passeriform by the end of the year. live applications at the same time. - ( thunder and rain ) - 3 million are using the simply everything plan. each is saving $1200 - over an at&t iphone plan. - ( cash register dings ) together that's over $3 billion. - enough to open a dunkin' donuts in space. - ( walkie-talkie sounds ) from america's most dependable 3g network. bringing you the first and only wireless 4g network.

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[captioning made possible by fox news channel] megyn: captioned by the national captioning institute --www.ncicap.org-- fox news alert, hammering out health care behind closed doors. meeting in private right now, discussing the health care plan, the session is getting under way as we speak. most republicans do not support the democratic bill. that sentiment, according to the polls, now shared by many americans. welcome to a brand new hour of "america's newsroom. bill: now the president has to convince not the republicans but a large group of house democrats, moderate to left

holding out on their support of america's affordable health choices act. megyn: that is what it will come down to apparently. these so-called moderate democrats, so-called blue dog democrats. not focusing on republicans right now, they have made it clear that they do not support the bill. blue dog democrats are still in play. how important is this group? >> they could be the key on the house side. 51 fiscally conservative congressmen and women and that are socially democratic. looking for a more conservative way to perform health care reform. mike ross is the chair of the blue dog health care committee, saying that we have a long way

to go. a lot of these groups are expecting leadership from the groups, and we saw that with the bill. so far these men and women are digging in their heels, not ready to jump on the train for democrats. megyn: it sounds like some of them might be putting the brakes on this thing, not ready to jump on the plan that needs to be done by august. some of them are saying why are we not doing this over in the senate? let it be their headache. >> a lot of them would like to see that happen. here is the issue, if it goes to the senate and is not get down there, they will have to answer to their more conservative districts. basically saying that the senate is not going to back it, why would we take a chance?

>> one of the things that i and many of the other blue dogs having courage of the speaker, waiting on this. let's don't rush this thing. >> that is not what the right house -- what the white house wants to hear. megyn: the white house says that it is not about politics, lawmakers beg to differ. in the last hour the president was announced as having a closed door meeting with blue dog democrats this morning. first of all, do we know why only some of them were invited and some were not? do we know the message of the president? >> this is the official response from the white house. they are saying that their meeting with democrats from the house energy and commerce committee. that is where the bill is being

inspected the most prominently in it -- prominently on the house side. they're hoping to kill this bill and keeping it out of committee, so bringing this group back will bring the most important the blue dogs. megyn: one thing about the blue dog democrats, handed to them in the nickname. kind of cool. rr. thank you, shannon. bill: senator jindamin said that this health care issue will be the waterloo of the president. let's just the other day one republican senator said "if we are able to stop obama on this, it will be his waterloo.

they will break camp." think about that. this is not about me. this is not about politics. it is about a health care system that is breaking america's families, businesses, and economy. bill: now he is hitting back, the senator, saying that americans are discovering the truth about his plan, which includes higher taxes and destroying jobs, as well as government-funded abortions. how about that for a back-and- forth? check it out here on the fox news channel. megyn: a reminder for you about just to exactly the uninsured are in this debate. -- just exactly who exactly -- about just exactly who the uninsured are in this debate.

half of the americans have declined coverage, or they are eligible for medicaid and did not sign up. 27% of young adults, ages 18 to 34. they call those the invincibles. they do not think that they need it. experts say that it is because of young people have -- are typically held here. i had no health insurance in college. once you turned 18 you were off of your parents' health insurance, thank god that nothing happened, but that is the attitude. bill: i am with you. a crucial hearing getting under way on capitol hill, lawmakers talking with the man charged with overseeing the $700 billion bailout from last fall.

live look on the hill, special inspector general, neil blaszkowsky, accusing treasury of being less than transparent when it comes to how your money is being spent. he says that this series of government bailout could cost taxpayers $24 trillion in the long run. elizabeth is with us from the fox business network. how are you? how do we put that in perspective? total exposure going back to 2007 for the american taxpayer, with only financial institutions. >> under that perspective, it equals the size of the u.s. gdp and the chinese gdp combined. they are trading shots, showing a figure meaning that banks and

mortgages in the country would have to fail. they are saying that the treasury department itself as opposed to taxing the members, saying this is an open loan, saying that the cost is with the $2 trillion. but that is the cost of the gross domestic product for a brazil. a big number. [laughter] bill: relief. in the stand with you are saying. the risk is the distinction that could be had over the $24 trillion. some of that money has been paid back. how it do we, taxpayers, figure out if the money is spent the right way? >> that is the key issue in the radar screen. is that money going towards lending? about one-third of the bank's that got bailout money say that the money went towards lending, but a big chunk of it was used to pay off creditors or pay of other banks. is that supporting the economy?

getting off of the lending markets. [laughter] bill: who knew, last fall? there were no rules attached. >> it is like following the government, which has been at full throttle, and had the american people gotten the money that the government said that they would get, that would be comfortable. but this x-ray of the bailouts, they are looking at raising red flags. where is the money going? bill: got you. good job. >> controversial hearing today. bill: thank you. keep an eye on that for us. [laughter] megyn: an amazing, stellar discovery. a new spot on jupiter. how did it get there? how did they find it? to top it off, the incredible image from millions of miles away.

bill: we all know -- we all know about the mayo clinic in minnesota, they provide some of the best coverage in the planet. they will weigh in on the president's health-care plan. megyn: check out this picture. mask on a metrobus in the nation's capital, can you see with the driver is doing? can you? bill: it is a long commute. [laughter] megyn: another accident waiting to happen. >> ♪ another one rides the bus

if we don't act, medical bills will wipe out their savings. if we don't act, she'll be denied coverage because of a pre-existing condition. and he won't get the chemotherapy he needs. if we don't act, health care costs will rise 70%. and he'll have to cut benefits for his employees. but we can act. the president and congress have a plan to lower your costs and stop denials for pre-existing conditions. it's time to act.

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i'd say it's taken us for a ride. honestly, what thanks do we owe progress? we're up to our necks in landfill, and down to the wire in resources and climate change is out to get us. that's why progress plays no role inside post shredded wheat. here we put the "no" in innovation. post original shredded wheat is still just the one, simple, honest ingredient which naturally comes with vitamins, minerals and fiber. all we did was make it spoon size. did we go too far? bill: in case you woke up this morning wondering what was going on on jupiter, check it out.

a brand new spot near the south pole. it is about the size of planet earth. think about that. astronomers think that jupiter might have been hit by a comet. they got a tip from an amateur astronomer. want to learn more about the current endeavor mission in space? had to our web site, click on the jupiter story. foxnews.com. megyn: one of the world's most respected medical authorities is weighing in on the health care plan coming from the obama administration. this is coming from the mayo clinic. this cannot come as good news to president obama. he has been singing their praises. >> the mayo clinic is providing some of the best quality and lowest costs. people are healthier coming out of there. there are some places, like the

mayo clinic, they provide outstanding care. people fly in from everywhere to get treated there. megyn: that same clinic is saying that the democratic plan will not create more quality or affordable health care. joining me now, a democrat from new jersey and a member of the house ways and means committee. good morning, sir. >> how are you? but megyn: great, thanks. this proposed legislation misses the opportunity to create higher quality health care that is more affordable. the mayo clinic says that your bill will do the opposite. not exactly a ringing endorsement. >> i read the two paragraphs, it is no report by any stretch. i agree with the president, the mayo clinic and the cleveland clinic have led the way in health care reform.

male has to understand that not every hospital is that the point that they are at right now. -- is that the point that they are at right now. everyone there is on salary. i think that we need change in medicare structuring. i would agree with the mayo clinic. we have to get their gradually. we cannot get there overnight. in the state of new jersey we have a serious situation. premiums have gone up five times more than salaries in eight years. 50% of the bankruptcies in this state are because of health care costs. 75% were people who had health care insurance. we cannot jump to where they are overnight, and this is what i intend in what many members of

the ways and means committee intends. megyn: let me jump in. their point, and others, even some democrats, even the "the new york times has made his point, you cannot reform health care in a way that is meaningful without restraining costs. you are basing this public auction on the current medicare program, where costs are out of control. doctors make money by not providing value to patients. they provide a volume. they get paid based on the number of times that they see patients, the number of patients that basie. they say that adding more to that broken system makes no sense. this is "the new york times" saying that you have to restrain costs and that subsidize insurance fails to force a fundamental changes in the fan and -- financing and delivery of

health care. the "the new york times." >> we have put over $1 billion into the recovery package that would provide money for the projects. more importantly, but blogging and what is efficient. -- looking at what is efficient. i would like to be more robust of reform legislation. with that the more that you put in, the more that you have to pay for. of like the other side, we want to pay for everything. we found a way to pay for it, they did not. we came up with the means. megyn: they are saying that this system is broken. the mayo clinic says that your system is broken. they say that it will be harder to recruit doctors and health- care professionals, who are already taking it on the chain

when it comes to being reimbursed by public insurance and medicare. >> if you read the tried- committee bill right now, there is much money put in there in terms of primary doctors and work force. i am not disagreeing with where they want to go, i am simply saying that it is contrary to the opposition that the president has received to this moment. if we do more of what they want in this bill right now it will only increase the costs. i believe in comparative effectiveness. there are practices out there that should relate to how each patient is being treated. that is how people in hospitals should be paid, not by simply utilizing any given system. you are over-utilizing the system, which is what is causing prices to increase so much. megyn: they think you are taking

a bad system and expanding the badness beyond where it is. i have got to leave at that. >> they say that when you have many -- read the paragraph -- megyn: i have to go. bill: this health care reform effort is a massive expansion of medicare and medicaid, programs that currently suffer from tens of billions of dollars in fraud. what is being done to keep us from being ripped off on a bigger scale? we will check that out.

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megyn: have you ever tried to read a book like you drive? what if you were driving a bus? take a look at this picture, and washington, d.c. metro driver, caught reading behind the wheel.

apparently the writer is an editor for "the washington examiner." apparently there were 20 people on board, during rush hour, and it was raining. just a few weeks after nine people were killed in a metro train collision. people should know better than this by now. the punishment for the reading driver? written warning. bill: rush hour, right? maybe he was just sitting there. maybe i am just making excuses for a guy. megyn: sometimes you take a car service in new york, you fill out a form. i always worry because half of the time they are driving in filling out the form. could you do that later? [laughter] i do not mind waiting for a few minutes at the other brand. bill: americans, answering the

call to volunteer time and abilities for the peace corps. adam has this story live. what is the story here? >> the peace corps has about $8,000 serving in seven or eight countries across the world, delivering everything from agriculture and hiv aids medication to business help. there has been an increase in that one out of every three people that fills out papers actually goes through with the process. really interesting that a 4% jump of applications has gone through in people over the age of 50. >> what do they attribute that to? >> they attributed to president obama. that inauguration this year as compared to last year saw an increase in applications. president bush pushed other organizations, like americorps, which went up under his watch.

the peace corps says that numbers have gone up significantly. they also say that not only is it because of the call to service from the president but also because of the recession in the bad jobs market. >> at the time i was casting around for a career direction, i had been laid off and was unemployed at the time. >> president obama wants to increase the size by 2011. bill: good for them. thank you, adam. megyn: every time did you get paid you put money into the health care programs of the nation. do you know what portions of our national pay out medicare takes up? 20%! here is the problem, tens of billions of your hard-earned dollars go to false claims every year. now, medicaid and medicare could

be even bigger. will that mean more fraud? bill: tens of billions of dollars. did you hear about the confrontation at the senatorial meeting? a racially charged debate between the u.s. senator and that woman -- and that man there. >> you are quoting a black man. that is offensive. you are being racial. been true since the day i made my first dollar. where is that dollar? i got it out to show you... uhh... was it rather old and wrinkly? yeah, you saw it? umm fancy a crisp? geico. fifteen minutes could save you fifteen percent or more on car insurance.

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bill: ben bernanke is issuing a warning, he is now testifying on capitol hill. he is repeating a forecast that the economy should start growing a game -- again later this year. but he expects unemployment numbers to continue to be big, continuing into 2011. meaning that we are headed for double digits.

we are about their right now. double-digit could be where we are headed, especially given the testimony of ben bernanke. megyn: judge sonia sotomayor could be on her way to confirmation to the lions high a score by next week. republicans are not planning a drawn-out debate on the confirmation, they have also said that they will not filibuster. they plan to block a vote that had been scheduled for today. as a result, the real vote might not help -- might happen until july 28. at least four republicans say that they're going to vote for her, and four other republicans have said that they will vote against her. given the democratic rep -- democratic support, it is likely that we will soon be calling her justice sotomayor. bill: lawmakers are scrambling

to overhaul the medicare and medicaid systems. did you know that the nonpartisan government accountability office labeled both of national programs high risk areas for fraud and waste and abuse? last year taxpayers paid an estimated $16 billion to scam artists instead of for care for the poor and elderly. ultimately, what will the major expansion of these programs mean for the rest of the country? how are you doing, mark? >> good. bill: this is just medicare, we voted to medicaid next. medicare, 2004, improperly paying out $21 billion. $12 billion in 2005. >> that is about correct. 2.5% of all payments made are

improper. bill: i am just getting started. medicaid in 2007 paid out $32 billion in improper payments? >> that is right. 10% of medicaid payments every year are improper. bill: that is about $65 billion in fraud and waste. how are we getting ripped off like this? >> criminal fraud is actually the bulk of it. -- criminal fraud is not actually the bulk of it. it is mostly improper payments, because of the confusing statements and system of payments that go to providers. in snares of this providers with improper coding and other unnecessary payments.

bill: you are saying that the system is too confusing? >> it needs to be reformed, substantially, before we expand medicaid in particular. bill: but that is not what i am reading here, mark. billions of dollars in false billing and fraud schemes. you are saying that that is not the case? >> there is a substantial amount of fraud in the system. there are provisions, they are even throwing in $100 million. that is the problem for criminal fraud and health care reform bills. it exists. the vast majority of improper payments made in the system are a result of just honest providers that get caught up in the proper coding. bill: what is the appropriate

billing service. so, what happens to the system? >> you compound the system by increasing medicaid enrollment and eligibility by 50% before you actually an act of the needed perform -- needed reform, getting a handle on increasing the level of proper payments to the system. bill: if we do not stop the bleeding, it is contributing to it? >> it will be worse. bill: how much worse? >> 50 percent worse, if you are adding to medicaid. -- 50% worse, if you are adding to medicaid. bill: are you confident that we can change the system and save them money? >> not in the health-care bills that i have seen and read. they really do not address the fundamental and ongoing problems, the traditional fee-

for-service systems that are there and overly complex systems that insnare providers. bill: we appreciate your expertise. thank you. megyn: a heated exchange at the senate last week turned ugly. california democrat, barbara boxer, heard testimony on cap and trade. harry albert is the president of the national black chamber of commerce. he is a critic of the president's energy policy. senator boxer, after hearing that, pointed out to him that other but -- other black leaders feel differently. hear what happened next. >> john glenn, the ceo of 100 black men in atlanta, "clean energy will a lot millions of jobs. our support is vital in ensuring --

>> madam chair, that is condescending to me. you are trying to put up another black group against me. >> if this gentleman were here, you would be proud -- he would be proud that he was being quoted. >> it is condescending to me >> just so you know, he would be proud that you are here. he is proud that i am quoting that. >> it is condescending, i do not like it. it is racial. i take offense to it. as an african-american and veteran of this country, i take offense to that. >> he went on bill o'reilly last night to speak about the deficit. barbara boxer was invited as well. here is what happened. >> you seem to object to the fact that she was quoting a black group as countermand during your black group.

>> it was like being in the bad old days of mississippi, when one man would ride out -- rise up against the big boss, finding another black preacher. it was ugly. she opened up a mud pit that i would not jump into. >> boxer said that she was simply trying to show that there was different levels of discourse in the african- american community. but he said that for her to go down that road was got awful. bill: what an exchange. it went on, back and forth. he was giving no ground. megyn: what do you think? was she out of line? did he overreact? e-mail us. the officer claims that he was just investigating a fender bender, caught on surveillance video grabbing a young women --

young woman by the neck. he is sticking a gun in the face of a young woman. but the problem is that the tape does not show the whole story. bill: down under lock, nowhere to turn? cheer up. the world might come to an end tomorrow. ♪ quality and reliability...

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commerce committee, they have postponed indefinitely the markup session of the bill. that is where you write it, go through it line by line, accepting or rejecting amendments. apparently they do not have the votes to pass it in committee. if they do not have the votes in the panel, they will not have it in the house generally. we will see the president in the rose garden, pitching health care reform. at 1:30 this afternoon, a group of moderate democrats that have not signed up for this plan, they will be there as well. tomorrow night the president goes on national tv, of all of the networks to try to sell the plan again. three critical points, we will watch it here. megyn: "kelly's court" is back in session. a tape that could cost a cop his

badge and gun. surveillance video from outside of this place in philadelphia, look at this. he grabs a young woman by the neck and sticks a gun in her face. it quickly becomes a scuffle. the officer later claimed that the woman first got physical as he approached her to discuss a fender bender from moments earlier that happened to involve the officer's son. the district attorney says that he will not prosecute the cop for the behavior, nor will he prosecute the woman. she is considering a civil suit against the cop and the department. the cop could still be fired. who has got the better legal argument? let's ask our panel. good morning. >> morning. megyn: it skips a couple of seconds, but you get the gist.

two confrontations in sight of this convenience store after these three guys and one gal got into a fender bender with the officer's son. the officer was not happy about it. was he out of line? >> completely. egregious. he violated procedure and policy on so many levels. i counted 20 different things that were wrong with what he did. his conduct is so outrageous that just disciplinary action aimed going to cut it. -- ain't going to cut it. this is exactly why people have bad opinions of police officers. when you have someone going off like a loaded gun, chasing someone within 5 seconds. he assaulted her, of course she will not be prosecuted. yes, she has a civil case. they should bring it. essentially no wrongdoing by him, or say, they are going to

settle this case, because that is what they do when they get a lot of bad publicity. megyn: that internal probe is under way. he could still be fired. should he be? so often in these cases, we do not know the truth. for one thing, we cannot hear what is being said. >> a huge issue. we cannot hear what the confrontation is about. granted, grabbing her by the neck is a bit iffy. but, when she is telling a man in uniform something inciting, rightly so he is coming into a situation with multiple individuals and he has to control the environment. megyn: this is what he said. that he testified that he came into the store and ordered her

and three young men to the floor. she freaked out, started punching, slapping and kicking me multiple times. mercedes, that is not what this tape shows. >> we do see her arm swinging towards the officer. he may have interpreted that as her trying to strike him. right about now she starts coming towards the officer, screaming at him. megyn: she does go in for round two. my move would have been to stay back and do what the guy said. now she gets into it with the cops son. and then the cop. look at this. >> are you kidding me? this is worse than the wild west. what is the son doing jumping in? this was from an accident that

his son got in. his son reread them. he came flying in their thinking he was the stunt double for clint eastwood and attacked the woman. what a joke. get some anger management. >> it was not an issue until after she confronted his father. god knows what she could have been doing. that is when he got confrontational. megyn: the other problem is that there is an allegation that officer lopez tried to pull aside the store clerk, more than once they said get rid of the tape. if you know what is good for you, get rid of the tape. >> not only that, he told him to get rid of the tape then and there, and three more times officers came by to raise the tape, telling him to do it if you know what is good for you. there is an allegation that the officer told his son in spanish

that they had a gun. does anyone see a problem with any of this? megyn: the other side is that this woman was yelling racial slurs, calling him the s word. >> it is a close call. that is why the prosecutor decided, you know what, maybe the officer got two hands on. but we do not have audio. she is certainly in citing the officer to react. the son was involved as well. going for the disciplinary process, it will be his good record. >> cops have got to have fixed again. megyn: got to have input -- thick skin. megyn: we have got to leave it at that. final word, who did this guy think that he was, barreling into the store with his gun

drawn to protect his son like a bully. but there is no lawsuit against the police department without a pattern of this kind of behavior. this caught needs a reality check. that woman was mistreated, but she was out of control. his fellow officers, his reputation was tarnished by acting like a bully. bill: calif., on the brink of bankruptcy. schools ready to shut down. releasing violent felons, that is one proposal. trying to swim through the weeds of the west coast, we are. megyn: with president obama blaming republicans for holding up health care, why is the democratic national committee running this advertisement in states represented entirely by democrats? . úb not long ago, this man had limited mobility.

last month, this woman wasn't even able to get around inside of her own home. they chose mobility. and they chose the scooter store! if you or a loved one live with limited mobility call the scooter store! no other company will work harder to make you mobile or do more to guarantee your complete satisfaction. if we pre-qualify you for a new power chair or scooter and your claim isn't approved, the scooter store will give you your power chair or scooter free. that's our guarantee. they were so helpful and nice.

they filed all the paperwork, and medicare and my insurance covered the cost. we can work directly with medicare or with your insurance company. we can even help with financing. if there's a way, we'll find it! so don't wait any longer, call the scooter store today.

bill: a slew of new at disney near waves renew advertising is hitting the airwaves. there has been back-and-forth from the white house targeting health care. but why these ads being run against democrats in certain districts? let's take a look. >> when i lost my job, i lost my insurance, too. >> my insurance company would not cover new when i got back. bill: bill salmon is a vice- president of news. good afternoon. so the object here is to put pressure on democrats around the fence a little bit, right?

>> yes, and this is rare for the democratic national committee to run ads targeting fellow democrats. it is very telling when you see what is it state -- what is at stake. this is the national committee running advertisements. bill: it is postponed on indefinitely, marking the bill. it is put off. how significant is that? >> potentially very significant. i have heard varying explanations, and writing from

the -- ranging from the benign, saying it was from 120 at the white house, and they have been scheduled to mark up the bill at 2:00 backed on the hill. so it is a scheduling problem. on the other side, there is deep worry that there are not votes to pass this. this committee is stocked with blue dog democrats, deeply worried about the cost of health care. they say that this may be too much. it is significant that the market has been delayed indefinitely. bill: the sand a shifting again on the calendar. we're told august recess, and that is the objective, but now there is wendell room.

we will watch letter today at 12:15. thank you. megyn: by the way, tons on the dustup. barbara boxer would not have told a white person that 100 white folks disagreed with him. that is just an example. folks do not appear to be on the senator's side.