studio. which is fantastic. gretchen: looking forward to that. you can catch hour after the show show online. steve: where have the three hours gone? we will do it again tomorrow. [laughter] [captioning made possible by fox news channel] captioned by the national captioning institute --www.ncicap.org-- bill: fox news alert, from the capitol building in washington, 63 hours until the house of representatives is supposed to start their summer break. democrats are trying to pull out an 11th hour health care bill deal. one of the hot new ideas is getting hit this morning, targeting the people it is intended to help. a group of seniors, the elderly, they are the most exposed. megyn: we have been tracking growing support for a senate plan to tackle the so-called

cadillac health benefits, attacking policy is costing more than $25,000 per year. new analysis shows that most of these policies are not held by rich ceos. the majority belong to older and sicker middle-class americans. even analysis by the left-wing kaiser family foundation is questioning whether it will plug the gaping costs for nationalizing health care. bill: stuart varney leads coverage from the fox business network. good morning to you. how does this affect everything? >> the language is being manipulated. a cadillac plan, those that not sound like lavish care for the rich? it is simply not true. the vast majority of plans that cost $25,000 per year or more cover people that are already

sick or the elderly. what is going on here is a form of class war. we invented class warfare where i came from. this is a good example of it. sounds bad, does it not? cadillac coverage? it drives me nuts, bill. bill: you can recognize it when you see it. what does that look like? >> it looks like that it is not fair, look at how much of the rich are getting, look at what they can afford. tax them, bring them down to earth, make them like us. that is what is at work. believe me. it will not bring in the money that they think it will. they are talking about $25,000 per year or more in health care benefits. do that and they say they will bring in more in 10 years. really? 0.3% of all health-care plan's

cost more than that every year. they are going to raise $90 billion in 10 years? i do not think so. bill: you are hot under the collar. >> sorry to get like this early in the morning, but i am a refugee from that kind of class warfare and i do not like it. bill: cadillac coverage, not what it is cracked up to beat. see you in the next hour. cool down, we have got 57 more minutes. bill -- megyn: i love it. his british accent lee adds something to it. what is the job? selling head of health-care reform to america. but it is a rough job. case in point, senator mack haskell center aids out to persuade people and take a look at what happened. >> we are opposed to health care

reform. we have serious concerns with it. [applause] megyn: the crowd is going nuts over the chance to criticize health care reform. it went on and on. the crowd was so big that town hall had to move to a cafeteria. bill: last week we had vince carnahan, missouri, shouted down. somebody said give me a break. megyn: give me a break. reduce the deficit? give me a break. bill: forget about that. president obama, meanwhile, trying to convince americans that his health care reform will not bring the big change. a tall order, not easily done.

older folks in particular are not sure what the president's vision of health care reform means for them. here is in part what he told members of the aarp yesterday afternoon during an on-line town meeting. >> you have got a doctor that you like, you will be able to keep that doctor. nobody is trying to change what works in the system. nobody is trying to reduce medicare benefits. bill: that was from yesterday. in a moment we will ask our in- house doctor if it is possible to do this without threatening options. if you like care that you have now, do not miss our segment. megyn: homeland security putting out a warning about homegrown terrorism. look out if you are traveling abroad, jihad 101, bringing it home.

daniel boyd was the alleged ringleader of a tear ring in north carolina. a veteran terrorist who had training camps in pakistan. jennifer griffin joins us live on the phone. >> what struck me is that he went to the local high school with me in alexandria, one year behind me. i did not know him at the time, but he ends up in raleigh, n.c., the third american indicted for wanting to carry out radical jihad on overseas targets. we know that they are looking for suspects in pakistan. authorities think that they may know who this person is and that there is no reason to be concerned. there is an eighth person on the loose at this time. megyn: it is hard to understand,

you go to the same high school as this guy and you become reporter and a journalist. this guy winds up planning g hyde on the united states. -- planning jihad and the united states. what happened? >> we actually took a similar route. we lived in pakistan in the early '90s. he was arrested in 1991 for carrying out a bank robbery. he was actually going to be sentenced to islamic justice. his right hand and left foot were going to be cut off. they were then given some sort of reprieve. in israel he wound up taking his son to gaza in 2006. that is what alerted authorities, why was this american going down to gaza? supposedly to train with militant groups.

israel supposedly stop him and his son from going back in. the feds have been watching this family for some time. also interesting, one of their neighbors says that one of the sons was cooperating with the fbi, identifying foreign fighters that they killed on the battlefield. they said that they knew who he was. the family saying that they are surprised that they are under suspicion. megyn: wow. two similar paths leading to very different life results. bill: what an ironic connection to our pentagon correspondent of all people. in a moment, one of the most controversial parts of the health care reform push is the so-called public auction. is that the answer to universal coverage? or a prescription for economic disaster? megyn: new developments in the

death of michael jackson. we are hearing reports that the doctor of the late singer had prescriptions for as many as 19 different aliases to get questionable drugs for jackson. what does it mean for the investigation and possible manslaughter charge? bill: new photographs show the material girl all pumped up. instead of a picture of health, could it be a picture of something disturbing? we will talk about that. >> ♪ celebration

megyn: new questions out of new jersey this morning. the people arrested in that massive corruption scandal last week? one and that has been found dead. you remember this, that rabbi who was selling organs? it is not. police are investigating the death -- the death of a political consultant, jack schott. police say that it does not appear to be a homicide. and they say that he accepted a bribe from an informant.

as if that story could not get weirder. bill: we are waiting on the democrats self-imposed deadline on health care reform. good news coming from the health-care office on the public auction. first, this so-called public plan would not drive private insurance out of business. about 9 million people would move to the government plan. 12 million would be added because of the mandate for employers to insure workers. how realistic are these projections. the part of congress that figures out of laws will work the way that they are written, that is the cbo. one group that is a private firm that works for them, i just mentioned what they think happened. with a move to the government plan? about 10 million.

billing group assumes 100 million americans will move to the government planned. what explains the wide disparity? >> operating from different assumptions. cbo is looking at the legislation that was drafted. they are very careful in applying the economic literature and how people will reply to the changes in the law. only 10 million people, they are saying. the living group has a different plan. what will this legislation look like if the people that want a public auction were able to get everything that they wanted? it shows that 100 million people would move into this program. i would say that they are right today, but that the other group is right tomorrow. what proponents are going to do is keep the public auction for special advantages and

eventually you will have 100 million people in the program. bill: the point is that if the government option is cheaper, it will attract more people? >> even if offering an inferior product. government programs offer a lower quality products at a higher cost, but they can be subsidized so that they can undercut the premiums. bill: changing the rules overtimes, changing the tax rate, figuring out a different way to pay for it. >> the senate is talking about taxes on private insurance? if they are imposing taxes on private insurance, it will drive people. bill: not just the cost, but the fact that the cbo thinks that if you have a private plan, you will keep it, but they are saying no chance, everyone will

jump. do you believe that? >> as the house legislation was written, they put up fire walls so that not everybody would be able to choose the program initially. in a couple of years, what the proponents are going to propose is getting rid of the fire wall so that everyone would be sucked into the program. bill: what would that lead to? >> lower quality health care at a higher cost. we have got a lot of evidence that shows that these programs cost more than private health insurance does. they do not always suppress the quality of care for people in the programs, but also people with private insurance because medicare has an enormous influence on how medic -- on how doctors practice medicine in this country. bill: i have got to go, but in summary this entire segment is about competing assumptions.

the government on one hand, private insurance on the other. where is the truth, ultimately? we cannot say. perhaps somewhere in the middle? >> as i said, cbo is right today, llewyn group is right tomorrow. bill: thank you for your time. megyn: presidents, professors, and cops, sitting down to have a beer at the white house tomorrow. we know what they're talking about. we know where they are meeting. now we know what they are drinking over. bill: a topic of great concern here in america's news room, madonna's physique. what is going on with the arms? megyn: it is kind of sick. ♪ well i was shopping for a new car, ♪

♪ which one's me - a cool convertible or an suv? ♪ ♪ too bad i didn't know my credit was whack ♪ ♪ 'cause now i'm driving off the lot in a used sub-compact. ♪ ♪ f-r-e-e, that spells free credit report dot com, baby. ♪ ♪ saw their ads on my tv ♪ thought about going but was too lazy ♪ ♪ now instead of looking fly and rollin' phat ♪ ♪ my legs are sticking to the vinyl ♪ ♪ and my posse's getting laughed at. ♪ ♪ f-r-e-e, that spells free- credit report dot com, baby. ♪ but now they have new areas where i can find the brands i use every day-- and save even more. so that's what they mean by unbeatable. save money. live better. walmart.

wwwwso that's what they mean by unbeatable. may be covered. liberty takes care of all the paperwork with medicare and sends the prescription forms directly to your doctor for approval. then, on your schedule, packs up this box and sends it right to your door with no charge for shipping. and liberty assures you have everything you need to manage your diabetes, including most brand name meters. call now and we'll send you a free meter.

plus, a free cookbook when you join. call liberty. they can help you live a better life. call the number on your screen. bill: a word of warning, the cost of keeping your summer glow going could cost you your life. new research is linking the use of tanning beds to a deadly form of skin cancer. the word at -- who is conducting a study showing that people under the age of 30 btus a tanning salon have a 75% greater chance of getting skin cancer than those who do not. that is from the world health organization. megyn: have you seen the biceps

on madonna lately? i am not saying this in an envious way. these are the only pictures that we can show you because we do not have the rights to the ones floating around the internet, but trust me, it is downright disgusting. look, the material girl has been spending a ton of time and money telling these arms. nothing wrong with going -- toning these arms. nothing wrong with going to the gym. but the veins are bursting out of the muscles, there is literally no more body fat on this woman. serious questions are being raised about the health of the pop star, and there are questions as to whether this is the example should be setting for young girls. dr keith tableau is with us. how are you? >> fine, thank you. megyn: i wish that we could show the actual picture.

it is disgusting. nothing but a bicep ripping out of a bone and some veins. she looks like an anorexic with muscles. is that not patently unhealthy? >> here is the question, is it unhealthy or quite healthy? here is the not healthy scenario -- if she is not healthy, and she should come forward and clarify, if she is suffering from anorexia and she thinks that she looks good, that is a problem and it affects millions of americans. i deal with it in my practice every day. if we are talking about somebody who is practicing caloric restriction, people who have reduced their calorie intake to 1500 per day and they are increasing longevity, and they

work out as well, those people are found to work as much as one third longer than other folks. very healthy, but very unattractive. megyn: we are showing video where her arms and legs look extremely towned. but these latest pictures of her make her look sick. the trainer that she works with, very well known in new york, has said that it is perfectly healthy to lose three to 5 pounds per week, and that she is on an incredible training regiment, a macrobiotic diet. you have got wellknown trainer as saying that this is not a gym body, it is not natural, it is extremely unhealthy. you have got to be going an extra yard. she has got to have 0% body fat. what is that? assuming that she has body this

market syndrome, where she thinks she looks terrific and wants to be thinner, what does that come from? a divorce? her celebrity? what is it? >> if she thinks that it looks good and the rest of us think not at all in she is in a position where she does not think that she is thin enough, that could lead to signs of anorexia or body does more for disorder. these people often think a need to lose weight. everyone says that they are too thin, but they think they're wrong, but that it is a conspiracy. the other reason is that this is all from a holistic attempt to prolong life. we know that bodies like that also carry this message to teens. put out more of the helpful chemicals that will protect myself from cell death. stressing your body intentionally so that it

stresses itself. megyn: you sound like you are advocating it. i know that calorie restriction can lead to longer life, but look, this looks like a fit woman. but the pictures that we cannot show you, that you can see on line, do not suggest health to this reporter. i grant you, it is my opinion, but are you advocating it? >> certainly an area for more study. there are supplements which mimic the effects of calorie restriction, now under investigation as to whether they can bring people over the 100 year mark. i think it will need much more study. clearly she needs to clarify what she is up to so that women do not emulate this for the wrong reasons.

it can be a healthy choice but esthetically and pleasing, but defendable as very healthy. megyn: madonna is adored by millions across the globe. she has been such an inspiration to a lot of people in the way that she keeps reinventing herself and her refusal to be stopped by age and everything else. i wish her all the best. we all do. maybe she is just not eating enough right now. doctor, thank you. bill: i thought that it was bad lighting or something. that all that there was was a ligament. [laughter] megyn: there are worse pictures, they have morphed. something unrecognizable. bill: i really thought that it was the lighting, but the truth is that she may have reduced her body to that. megyn: if the lighting to make your muscles of like that, i would like that lighting in

here. [laughter] we could give it the old college try. bill: we will keep working. investigators, in the meantime, saying that michael jackson may have had as many as 19 aliases, just to provide him access to prescription painkillers. what did his doctors know? why did prosecutors charge them in his death? megyn: did this picnic table provide a new chapter in relations? or is it just a comfortable spot for a beer? wandering around the backyard of the white house.

(mom) i'm not going to be able to see her every day. or sit on her bed and talk about her day. but she's ready. thanks to walmart's unbeatable prices, i was able to get her everything she needed. as well as what she wanted. letting go? mom! (mom) that's the hard part. set them up for success, for less. save money. live better. walmart. i've been hangin' up there for, what, like, forty years? and then - wham - here i am smacking the pretty off that windshield of yours. oh, what you're looking for an apology? well, toss another coin in the wishing well, pal. it's not happenin'.

limb: hey, what's up, donnie? how you been? anncr: accidents are bad. anncr:but geico's good ding! with onsite windshield replacement. you can make a positive change in your career. you can make a greater contribution to the greater good. and you can start today,

by earning your degree online... at walden university. where advanced degrees advance the quality of life. are enjoying the new palm pre from sprint. its revolutionary web os allows multiple applications to run at the same time. - ( thunder and rain ) - millions are using the simply everything plan. - each is saving $1200 over an at&t iphone plan. - ( cash register dings ) together that's billions of dollars. enough to open a dunkin' donuts in space. from america's most dependable 3g network. bringing you the first and only wireless 4g network. get the palm pre. only from sprint. only on the now network. deaf, hard of hearing and people with speech disabilities access www.sprintrelay.com. megyn: the ntsb is weighing in with new recommendations after the so-called miracle on the hudson. they now say that sturdier air frames may prevent crashes like the u.s. air 1549.

it was a splash landing, not a crash landing. landing in the hudson river after hitting a flock of geese. remember sully sullivan at the helm? under current standards a claim must solve -- survive a collision -- the airplane must survive a collision with birds 5 pounds or larger. bill: folks in denver, colorado, getting together yesterday to be heard over health care. they say that medical decisions will be made in ways that might cause death. >> what happens when the government steps in is they decide what they are going to pay for a certain procedure. it is not the market price, a doctor chooses not to provide that procedure. we do not want that to happen. bill: that is what protesters

are saying. we will talk to dr. mark siegel to see of these fears are realistic or not. megyn: developments into the investigation of michael jackson's death. federal drug agents raiding the home and office of his private physician, conrad murray. he was a cardiologists working with jackson's private doctor at the time of michael jackson's death. a new report says that jackson might have used up to 19 different aliases to get prescription drugs. this investigation provides a rare look at the cozy and dangerous treatment that celebrities can demand. could the state -- could this case change the laws governing prescription drugs? joining us now, former lapd detective and fox news contributor, mark. what a mess. before we get to this, they are

calling in on conrad marie. is he headed for a manslaughter charge? >> they are certainly building that case. they are using the federal government because they have power over doctors and prescription drugs and controlled substances. they are using them quite affectively. getting to where they could not fit easily. megyn: like inside of his house? >> they could get there, but there is a larger spectrum or probable cause. a doctor cannot knowingly use an alias for someone they have already given x amount of drugs to. when i read that prescription, when it is written for this person, they specifically know who they are seeing in their office. megyn: which is not illegal.

they have a huge list of aliases. on and on. they are not attending them all on conrad murray. they are saying that he had several doctors. could be more than one dozen giving him these prescriptions and fake names. are they all going to be under different aliases. >> they could be. a drug dealer is not necessarily someone on the corner that you give money to the give you drugs. a law is written in every state, certainly federal. if you provide, give, or sell, you are a drug dealer. an eye doctor provides drugs knowing that that is not the proper prescription, not the right person, or that that person is abusing, you are in essence a drug dealer. megyn: is there any defense --

let's say there is just one alias. they did not want his records becoming public. people worry about that now with electronic health records. without be illegal? can they defend their actions us saying that he is a huge celebrity? but they all used the fake names to protect his privacy? >> let's be honest, using one envious to protect an identity is one thing. but if that one person is taking 15 times the amount of drugs or what he is being prescribed for, now you have got a huge of use. but that is not the case. megyn: being in law enforcement for so many years, this guy getting $150,000 per month to be a private doctor, about to

double when going into war, is simple -- implausible that he could have -- going on tour, is it implausible that he could have been providing these drugs? are all the ducks in a row? >> absolutely. the first thing that you do in an emergency situation is you have someone call 011 now -- 911 now. you do not attempt cpr and call when not successful. he did not want official people there. he wanted jackson alive. he did not want to pass the baton to someone else. he knew what was going on. $150,000 per month? cells like the member of a cartel, not a doctor. megyn: not like this is one of

the preeminent doctors in the country either. he has a shady history, including his partner. >> is not a cardiologists? megyn: he is not board certified. >> he did not know how to do cpr? megyn: the first thing they call me at cpr class was that 911 was the first number you call before you attended cpr. authorities interviewed the manager of the doctors storage unit, and the manager said that the doctor's staff went to the storage unit and removed several boxes from that facility on the morning of michael jackson's death before any 911 call was made. could that be evidence of him moving? >> absolutely. take those people. what they want is someone who can establish the doctors

commands and contacts. what cell phone calls went out? who did he call? you get those people, sit them down and say that you can talk to me or we will prosecute and find out down the road that you are going to jail. or you can be a witness and cooperate. they are trying to establish what he is trying to hide, but he was trying to delete, and it, and get rid of during that time between the death of michael jackson and the first search warrant. the computer. if you have all of these aliases and no problem because he is a famous person, but you delete it, hide it, and correct it, they will find it. when they do, they will provide an overt action of consciousness of guilt. megyn: his lawyer said that they will not respond to rumors and innuendo. they assert that they gave michael jackson nothing that should have caused his death.

>> what rumors? i have not heard anything yet. when you have a study where there is no artificial respiration or oxygen, is there not an oath that doctors take to do no harm? megyn: in his defense, they did find oxygen tanks in the bedroom of michael jackson. >> artificial respiration is not the same. megyn: exactly. you would need an anesthesiologist in a hospital setting. all right. mark furman, a pleasure to have you here. bill: tomorrow, president obama, a sergeant, and president obama said down to talk about what happened in massachusetts. this all happened at a picnic table in the backyard of the white house. turns out that that table came with the place that for the

first daughter's outside of the oval office -- place at -- play set for the first daughter's outside the oval office. he sat down there with hillary clinton several weeks ago. you will see them in a minute. they are hoping that tomorrow will offer a teachable moment on race in america. the officer is expected to have his family with them. no word on that the professor plans to do the same. we will have that tomorrow night. we will get that picture in a moment. sitting down at the table. wait for it, wait for it. thank you. megyn: let's show them we are doing. mark is here, he has sean hannity and me signing his

shirt. he did not ask for you, bill. just kidding. [laughter] cabinet chiefs, filling in order to cut waste from the budget. other people are wondering why this did not happen sooner. bill: president obama, trying to reassure americans that their medicare benefits will not be hurt. what do america's doctors think about that? we have that next.

bill: yesterday afternoon the president was trying to explain at an aarp meeting how you could take money out of medicare, the holy grail of the entire deal, how could you take costs without rationing care. listen. >> nobody is talking about reducing medicare benefits. they are there because people contributed to a system, it works, we do not want to change it. bill: is it possible? how is it possible? dr. mark siegel is our medical contributor today and every day. is this true? no one is talking about cutting these benefits? can you do this?

>> you cannot do this. i cannot believe they are coming out in support of these plans. in the first place, our elderly have become used to a high quality of care. hills that you could not get before that keep you, keep you in better shape. it is a great time to be over 65. all that is in jeopardy right now. the house bill has a section called advanced planning counselor. the government sends a counselor to talk to you after the age of 65. bill: what do you talk to them about? >> you meet with them about what you might want it this happens or that happens. how aggressive care do you want? every five years but won a counselor to meet with you to

help you to plan the end of your life with the idea in mind of scaling back services. fewer nursing homes, wheelchairs', medication, less over use of medical care. bill: i trust your opinion, it sounds extreme. the president says that he wants to target wasteful spending. sounds like a good idea. too many trips to the hospital, how do you achieve that? >> let me tell you something else that is wrong with that. if you are cutting positions -- physicians, you cut patients. let me explain. they have longer list of medications now, more medical problems. keeping cutting doctors, that will bring no liability reform. physicians are worried. why do you think that one quarter of this money goes to end of life in the last 10 days? do you know why? doctors are afraid of being

sued. they are afraid that if they pull the plug, they will be sued. where is the liability? bill: we have talked about that here in great detail. you wonder how much that is a part of the negotiations on the hill. bill: trial lawyers and their associations are very powerful. i am concerned about the fact that there are a lot of incentives to decrease care to the elderly. i do not want the government making that decision, i want the patients making those decisions. i have a 85-year-old running marathons and practicing. who decides? it is a one on one art of medicine. the government has no business interfering in that. bill: we have heard that repeatedly. thank you for your input. >> thank you. megyn: the president told his cabinet to find budget cuts. they did.

what are their new ideas? using both sides of a sheet of paper. cutting edge changes, straight ahead. bill: the post office is now a high risk agency. plagued with mismanagement, rife with fraud. why is no one making changes? we will talk to the folks in charge coming up on "america's newsroom."

%%%%%%%%%%%%%%%%

bill: story is developing right now, robert gates continues his trips in iraq. talking about a heated dispute over oil in that part of the country. military commanders said the conflict, why they call it a serious threat to iraqi security.

the car bombing in spain outside of a police station, 46 people were injured. signs of recovery after a deadly attack on two luxury hotels in jakarta, indonesia. those hotels are reopening today in the capital city. megyn: the swine flu outbreak is changing a lot more than social conventions, like shaking hands. it also changes the way that people worship. we have more from london. >> look at the big picture, 100,000 people infected in the u.k.. the whole country is on alert. anglican priests have suspended the practice of sharing wine during communion. i have avoided placing wafers on

the tongue. but they urge people not to overreact. >> we need to stand against panic in the society and not join in the panic. there is a degree of panic that is quite unnecessary. >> the muslim community is also concerned. they say that the elderly should avoid traveling this year. orthodox have broken with tradition and they no longer drink from the same glass of wine. >> while health officials say that precaution to be taken, they do think that it is not as serious as they first thought. they do not want to risk exposing other people. megyn: let me ask you this, when you go to receive communion, do you take it in your hand, or do you stick your tongue out? bill: hand. megyn: me too. something could go wrong. you could gag.

[laughter] you do not want to gag on the holy father. bill: church on sunday. i have not taken it on the, in a long time. -- on the tongue in a long time. megyn: and there is pressure to get it right. there are a lot of rules to being catholic. you have to follow them right. bill: follow along if you can at home. [laughter] megyn: coming up, one of the strangest cases we have seen in "kelly's court." two prosecutors admit having kinky sex. one is accusing the other of rape. this man's entire life is on the line. we will debate, you will decide.

bill:: paulo, which side is he supporting? -- colin powell, which side is he supporting? >> congress is spending millions to keep mustangs running wild. that is next. nothing beats walmart's unbeatable prices... but now they have new areas where i can find the brands i use every day-- and save even more. so that's what they mean by unbeatable. save money. live better. walmart. 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.

having to go in the middle of traffic and just starting and stopping.

having to go in the middle of a ballgame and then not being able to go once i got there. and going at night. i thought i had a going problem. my doctor said i had a growing problem. it wasn't my bladder. my prostate was growing. i had an enlarging prostate that was causing my urinary symptoms. my doctor prescribed avodart. (announcer) over time, avodart actually shrinks the prostate and improves urinary symptoms. so i can go more easily when i need to go and go less often. (announcer) avodart is for men only. women should not take or handle avodart due to risk of a specific birth defect. do not donate blood until 6 months after stopping avodart. tell your doctor if you have liver disease. rarely sexual side effects, swelling or tenderness of the breasts can occur. only your health care provider can tell if symptoms are from an enlarged prostate and not a more serious condition like prostate cancer. so have regular exams. call your doctor today. avodart. help take care of your growing problem

megyn: you are looking live at the white house. well, that is air force one. at any moment the president will head out on another trip to pitch his health-care plan to another piece -- to the american people. bill: good morning, everyone. [captioning made possible by fox news channel] captioned by the national captioning institute --www.ncicap.org-- this is one day after holding one yesterday, he is keeping the pressure on congress to cut -- to pass his top domestic priority. megyn: marty as live at the white house. we have seen the president taking to the road to bring his message on health care directly to the american people. we are told that these town hall meetings are often filled with people that support the president and feel the way that he does on health care. what good are these meetings actually doing? are they helping the polls or

his numbers? >> good morning. let me tell you first, marine won just landed. the president should be boarding and taking off any moment now. when people are asked about what they think about health care reform, i guess that is the question. we just spoke a few moments ago with the white house press secretary, robert gibbs, and he said that the president will continue to do this to route august, town hall meetings to explain his priorities for health care. today he is going to outline the steps aimed at making sure that insurance companies do not drop people or deny them coverage. that would include things like no discrimination against people with pre-existing conditions. they are making a push on

networking sites to get the protection out. megyn: in case you wanted to know the building that she is standing in front of, there it is on screen right. you will see her in front of the white house every moment here on "america's newsroom." down in the senate they are considering the house health care reform plan. nancy pelosi said that the house plan is going to have a public, government-run option. now the senate has its own ideas, and it has been controversial since the beginning. what are they proposing? what does the president say about the senate's proposal? >> the senate is looking towards including no public option, may be private health care coops. president obama has said that he has supported a public auction

all along. here is what he said at the town hall yesterday. >> this is controversial, and i realize that people are worried, but we think that it makes sense to have a public option alongside the private option. you could choose a public insurer, but we would also have the private lands. >> the president would not necessarily require a public auction, but would support anything with additional choices in competition. the president supposedly called several members of the finance committee yesterday, but it was supposedly just to make sure that progress continued. megyn: now we have heard in front of the west wing as well as a fun house of the white house, as well as air force one. if it has to do with the president and where he lives, we are on top of it.

bill: mixed messages from top lawmakers on the timing of the health care bill and health care reform. that is the u.s. capitol building. we are learning about a memo from democrats, apparently there will be no bill before the recess. nancy pelosi said not so fast, no announcement on the floor schedule had been made. what is more, there is a report that members could keep working to route the weekend. america's news room is all over this situation. just a reminder, the unofficial self-imposed deadline for democrats is about 62 hours from now. bill: -- megyn: did you see my capitol building? did you see my capitol building and raise me a white house? bill: without our leadership and guidance, they would not know what the big dome is.

megyn: we are on top of it, our power is endless here in "america's newsroom." bill: when you put it together, it is like boom. megyn: very pretty buildings in washington, d.c. [laughter] : powell is weighing in on the rest -- colin powell is weighing in on the anger of his friend, professor gates. he said that he thinks that gates should have cooperated with the police, who were only trying to do their jobs. he did? he was called off when it was clear he was not a burglar. of course, the police sergeant did not arrest gates for being a burglar. he arrested him for disorderly conduct. charges were later dropped when the case sparked controversy. president obama, inadvertently,

said the cambridge police apartment acted stupidly. he, the officer, and professor gates are going to put the whole thing behind them tomorrow evening while sipping a beer at the picnic table of peace. pretty? bill: yes. our white house team did a lot of research for us. it comes with a swing set, this the cable does. it also comes with a canopy covered penthouse. inside are block -- bronze plaques containing the names of all of the 44 presidents. it is possible that they will beat -- they will be used as coasters for the beer. the swing set and the pigment table was purchased for the pick

-- for the children. we are told that a swing set like that runs about $3,500. there is one photograph that was released two months ago with the president and hillary clinton. megyn: imagine the thought baubles that you could place over that. [laughter] bill: professor gates likes backs, apparently, the officer lights blue moon. we found that out, the golden beer from colorado. megyn: he could make a few of those beers have been on a picnic table of peace. bill: you know what i recommend? megyn: pedroistella artois. t@)u

bill: they tighten their belts, cutting the deficit by 5/1 hundred of 1%. -- 5/100 of 1%. stuart varney, have you cooled down? >> i have, listening to megyn kelly's story for water. [laughter] incredible, i am getting steamed all over again. you have got record spending, a

massive record deficit, and minuscule savings, delivered late and in the dead of night. these savings are laughable. for example, there is an agricultural department meeting to discuss plant and animal life, as well as the air force attempting to save funds of the electricity. the treasury would shred documents instead of burning them, and i am informed the the united states government has discovered that you can print and copy on both sides of a piece of paper to save money. bill: who does that? >> does everyone not do that now? why have we not had these savings in the past? why do we have these laughable, meaningless savings when there is an 11.6 trillion dollars deficit and an intensely

bureaucratic government proposing to take over your health care. are you happy? bill: if you do the math, what do we pay in deficit? 2248? what is that? >> in the distant future. bill: good money. we will wait for that. >>megyn: it is the equivalent of cutting a foot long sandwich from the budget of a construction worker. [laughter] slicing and dicing continues in california, using the line-item veto. child welfare, health care reform, all seeing deep cuts. not seeing well -- not sitting well with democrats who are

proposing to block the agenda. all of this reminding us of the picture that we love. cannot get over this, the governor wielding a knife as he thinks supporters. he has got pizazz. no word on whether the knife will be back. bill: watch california, what happens there affects the rest of the country. so many other states are trying to face reality. megyn: coming up, we hear from a woman that fell ill and it changed her family forever. we get her take on the debate, impacting every one of us. bill: the videotape that has us doing a double take. are you watching this? why did this man start licking the floor in front of police? megyn: william la jeunesse as live in ridgecrest, calif.. what do you have in store for

us? >> brought here by the spanish, abandoned by the tribes and settlers, and today these wild horses are looking for a home and a handout from taxpayers. that is coming up. welcome to the now network. population: 49 million.

right now 1.2 million people are on sprint mobile broadband. 31 are streaming a sales conference from the road. eight are wearing bathrobes. two... less. - 154 people are tracking shipments on a train. - ( train whistles ) 33 are im'ing on a ferry. and 1300 are secretly checking email... - on a vacation. - hmm? ( groans ) that's happening now. america's most dependable 3g network. bringing you the first and only wireless 4g network. sprint. the now network. deaf, hard of hearing and people with speech disabilities access www.sprintrelay.com.

bill: a traffic stand -- a traffic stop becomes the strangest thing we have ever seen. and white, powdery substance fell out of this man's pants. he dropped to the ground and started licking the floor. the white powder was crystal methamphetamine. he is now serving time for evidence tampering. megyn: glad we cleared that up. she worked in internet technology and she had insurance. she had a heck of a health problem that could not be diagnosed. she went from doctor to doctor, specialist to special -- specialist to specialist.

finally, after months of $700 per month medical bills, she got some help. she is one of the many americans that feels that it is high time for health care reform. how are you? >> how are you? megyn: i am fine. glad to hear that you got your diagnosis. you had complications after pregnancy. you did not know what was causing it, and you found out it was a real medical problem that could be diagnosed and cared. you say that basically this entire process, going from doctor to doctor, all that money that you were paying out, he essentially cost you your job. -- it essentially cost you your job. >> when i had two chronic

conditions, and other health issues that come with them, i got sick. the health insurance was to my job. my help -- husband was self- employed. it was obvious to us that he had to get a job that offered health insurance. thereafter, i had to resign because of my health problems. health insurance and depends on your job. it was necessary for someone who was so sick and needed to keep seeing doctors, there were chronic conditions without a cure. megyn: i know that you are a supporter of president obama and you support health care reform. let me argue with you from the other side. listen, if we switch over to

this new system, someone like you might wind up in a public auction. many feel that if there is such an option, and you are in it, your time for waiting is going to be even longer than you fac ed under private insurance. your thoughts? >> president obama's healthcare principles are about reducing costs and providing options. you can keep your current insurance and still have the option if you would like to go public. also, affordable health care and quality. for me, right now i still need -- when i call a doctor, it can take weeks even with private insurance. many people do not understand health insurance until they get very sick. that was my problem before.

megyn: but if you look at canada as a model, they have a public run model, wait times are even longer than the ones you just cited. the average wait for gyn surgery is 12 weeks. the waiting list to get to see a neurosurgeon, five weeks the 30 weeks. waiting one year for a hit and need replacement. then there is the institute of economic our affairs -- economic affairs, saying that these are the worst systems in the world. people are worried that the quality and wait time will go down. why do you think they are wrong? >> it will be american health care reform. it will not be canadian or british. we may learn from their mistakes. lessons learned, learning from

what was successful and what was not successful. but it will be an american system that will be based on our culture and diversity. and other issues that we go through every day. i do not think that it will be canadian or british. i think it will be an american system. megyn: thank you for coming on and telling your story. >> thank you for having me. bill: in a moment, freedom of speech, not for the owners of a shopping mall in north carolina. new developments in the case of a businessman who got the boot for selling products with a conservative theme. megyn: on the docket today in "kelly's court," a sex crimes prosecutor accused of rape by a fellow prosecutor. he says it was consensual. she says it was out of control.

who is lying? an incredible case. geico's been saving people money on car insurance for over 70 years. and who doesn't want value for their dollar? 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.

n diabetics on medicare. hello, i'm john fox---you may know that i'm a professional bass fisherman. but you may not know that i have diabetes. and it's never slowed me down thanks to the good folks at liberty medical. i've been a liberty medical patient for years and have relied on them for all my diabetic needs. and, if you call now you'll receive a free meter. it's easy to use with fast results. even the shipping is free and medicare may cover the cost of your other supplies. liberty medical keeps you on track by delivering diabetic supplies right to your door. they even take care of the paperwork, file your claims and send you a free meter. call right now and they'll also send you a free diabetic cookbook.

diabetes doesn't have to slow you down. join me and over a million people

bill: welcome back. get ready to pony up a lot of cash. these are live pictures of a horse rescue operation where wild sort -- wild horses are being prepped for adoption. that is where you, in. get ready to give up your money for birth control for wild horses. one senses says they need acres of land for a new home on the range. good morning, my friend. how big of an issue is this? >> it has become a big into with

the half -- the issue with the house passing this bill. they are a symbol of our american west history. it worked. there are too many horses and not enough land. there are 36,000 around the western states, about one-third too many. they are crowding out native species, in some cases ruining the ecosystem. especially in drought areas. the bureau of land management said that we do not have enough space or money to take care of them, and we would have to consider all options, like slaughter. that sent the horse people crazy. they went over the congress, where they passed a bill that would provide a sanctuary about the side of west virginia and provide birth control, which

would include castration. these methods were considered humane and practical solutions. republicans said that the price tag is irresponsible. that is the controversy. bill: those forces you are with today, what happens to them? >> that is the problem. because the economy is so bad and the price of hay has gone up, adoptions have fallen off. the horses not expensive, $125. the cost of care is expensive. last weekend, only 14 adoptions. too many horses. most of these are being prepared for adoption. some of them will be sent to the

east coast. they are a great animal. out here in the west where there are issues with land, the concern is that they will take away land from cattle ranchers. that is why it will be so difficult to get this passed in the senate. listen, they say, we are between a rock and a hard place. it is three-quarters of their budget right now for this program. or they need people to adopt them. or there is slaughtered. which is considered unacceptable. bill: thank you, william. in the meantime, enjoy the day. megyn: a california's tax cut -- sex crimes prosecutor has been accused of rape by fellow prosecutor. this prosecutor says look, i did not break any one, it was kinky sex. his life is on the line. wait until you hear the facts.

bill: homeland security issues a terror warning. new issues over u.s. citizens heading overseas for terror training. megyn kelly u.s. post office got some bad news today. apparently billions of dollars in all, now considered a high- risk operation. high risk? the post office? what does this mean for your mail? that is next. ♪

bill: we are getting word from the department of homeland security, they have issued a bulletin to law enforcement agencies across the country to look out for american extremists all over the country looking for terror training.

patrick boyd was accused of running a ring of aspiring terrorists out of north carolina. six other suspects were arrested, accused of providing material support to terrorist. the fed's said that they repeatedly travel overseas for training, training others on their private property in north carolina. we believe that there is one other suspect at large in the case. megyn: a health scare in washington. news that six teenage senate pages are sick, spreading like wildfire. the reason? they might have this line flow. they come into constant contact with lawmakers. how bad is it, brian? >> there are six of these high school students exhibiting flu-

like symptoms. is it the virus? they say it could be yes? but they are not panicking. these pages will lead even be tested. they say that it does not matter, because the treatment is the same that they would receive right now for your garden variety flu. four are being isolated away from the others, two that live off of capitol hill, being told to stay home until they feel better. megyn: it does not sound like the emergency reaction that you hear about in other places. does that mean that the experts are not as concerned as they once were? >> we are still experiencing waves of the virus across the country in the middle of the summer, when there are no traditional flu outbreaks.

experts say that this is a sign that it could come back with a vengeance in the fall and winter. they are most worried about small children. here is what date -- what they are saying that the center for disease control right now. >> this is a new virus and there is not long-term protection against it. there might be an increased amount of illness from it, particularly amongst younger people. >> so it makes sense for them to watch it closely. megyn: what are the pregnant ladies supposed to do? >> right now unless you fall into a high-risk category, and you are right, take extra precautions. right now if you go to the emergency room, they send you home to wait it out unless you are in a high-risk group. tamiflu is supposed to work pretty well right now.

we hear this all the time and you get tired of hearing this advice, but you cannot wash your hands enough. it is the one thing you can do that will protect the best. megyn: good to know. thank you, brian. for me and my the new body. i used to never call in sick, but now is the time. bill: i wash my hands. [laughter] the government accountability office issued a warning yesterday saying that the u.s. ps is now in a high-risk government program. the postal service, it has been hurting financially for a while now. it lost $2.8 billion last year. stephen lynch, good morning.

>> good morning, bill. bill: is this a well oiled machine? >> the postal service did need to be reclassified. has been a double whammy effect on the postal service. on the one hand, we have had the economy. last year, 2009, we lost 9.5 billion pieces of mail because of the economy. also because people are paying bills online. bill: i hear you. but we saw that coming in 1996. yet they are still losing money year after year. we found that outstanding debts could go $10 billion. staggering. would a change in management be something to you support?

>> i do not think that that alone will make a difference. you are talking about 23 billion pieces of mail being taken out of a system that was built on volume. we have to look at other dramatic steps to reduce costs within the postal service. i am glad that they downgraded the were the midst of the post office, because i think it will rally the troops. right now, congress is b-- bill: everyone is watching wondering what is going on. fedex is profitable. ups is profitable. is it time to make the post office private? >> if fed ex and ups did what the post office did, they would not be profitable. they provide universal coverage to every business and home in

america. if you do not want that service, you could probably reduce the postal service cost as well. bill: i agree with you, it is an amazing thing to send a letter from 44 cents from florida to alaska and get there in three days. but that is well priced and we are looking at reality. what can we do to change the game for the post office to make sure that this money is not paid by taxpayers? >> every time a high-rises built, we have been putting post offices inside of them. right now we have 37,000 branches across america. there are situations where you have them right across the street from each other. we have to look at those situations and consolidate. pompidbill: how much could we s?

>> that is not all we are talking about. we have high rent districts that we could consolidate, move them over to buildings that we already own. we could look at a number of ways where we are operating with health benefit situations and the postal service. there are a lot of things that we could do to reduce costs. however, we need consensus in congress, the house, and the senate. bill: lots of folks are saying to get on it. thank you for coming on. good to get your opinion and the views. folks saying did it in order. megyn: the navy is getting its first ever stealth fighter. lockheed martin is celebrating the rollout. in the coming years it will

take the place of the f-16 and the f-22 as the fighter jet of the future. 19 test planes were built this year. the military will take its first delivery in 2012. bill: interesting news. keeping a strong. in the meantime, serious topic coming up on "kelly's court." megyn: a sex crimes prosecutor that finds himself in handcuffs, accused of raping a fellow prosecutor. the details of the case are shocking. will the accuser's story hold up? we will examine the facts next in "kelly's court." bill: president obama, taking place in two town halls on health care reform. will that be enough to convince americans to change their health care coverage for good?

f

what's our favorite part of honey bunches of oats? the sparkly flakes. the honey-baked bunches! the magic's in the mix. my favorite part? eating it. honey bunches of oats.

taste the joy we put in every spoonful. we call the bunches in honey bunches of oats the prize in the box. well, now there's a prize inside the prize. pecans! pecans! baked into crunchy oat bunches. taste the delicious surprise in every spoonful. new honey bunches of oats with pecan bunches. beautiful. jane: there is a lot happening at the top of the hour. we are waiting to hear from that woman who sent out the 911 col. we will hear from the president on, you guessed it, health care. bill: -- gregg: a lot of states are facing a lot of cutbacks. some of them are letting inmates out early. are we at risk? we will tackle that subjects coming up on de "happening now." megyn: "kelly's court" is back

in session. on the dock at? prosecutor versus prosecutors . a california district attorney that prosecuted sex crimes cases has been fired and is facing criminal charges after a colleague accused him of brutally raping her. the defendant says that he and his accuser took a lunch break during a trial and had consensual sex at his home. the accuser says that things went way too far, that she consented at first but then he took it beyond her consent, holding a gun to her head, handcuffing her, and raping her. how does a jury get to the bottom of who is telling the truth? let's ask our panel. good morning, gentlemen. >> good morning. megyn: this man's life is on line, his freedom is on the line. this is serious. she is standing by her story.

he says that this is not true and his lawyer has guaranteed an acquittal in the trial. i have never seen that before in a criminal case. tell us what she is alleging. >> she is alleging that they went to his house during a court break, which as a former prosecutor and current trial attorney, that is a little odd. the jury was deliberating on a sexual assault case. it was consensual at that point, but then he crossed the line when he took out a gun, an ice pick, ice cubes and handcuffs, using them all on her in different ways, sodomizing her. then they went back to the office. the criticism is that there was not immediate outcry and that it was in fact months. sex crimes prosecutors know that

that is not that unbelievable or on common. that is the main argument of the defense. she took so long continuing to work around him in the office. he was allowed to stay until charges were handed over to the state. megyn: all of which the defense says stings and that he is an innocent man accused by a woman who has had second thoughts. >> i have no idea, first of all, what happened, but let me explain something to you. the verdict by a jury is not whether someone did it or not, innocent is not on there. guilty or not guilty. there is reasonable doubt in this case. let me throw out the hurdles that the prosecution may not be able to get over. first of all, she waited four months before reporting this alleged brutal rape.

no. 2, she did not immediately call someone. apparently she was placed at the local farmers' market immediately after she suffered injuries from this brutal rape. third, they had a history and had had consensual sex together at her apartment. she does road in front of him consentual lay before objecting to the type of sex that he wanted to have. finally, her story and his story are so similar, the only difference is that she did not agree. he says that she made jokes about how small the gun was and it was a part of their aggressive play. the problem is reasonable doubt. count the fact that they have to overcome, i do not see anything but an acquittal. megyn: it will obviously be problematic for the prosecution. if she did in fact joke about the size of a gun, then it makes no sense.

no. 2, the defendant says that after the alleged rape, which he calls consensual sex, she stopped to perform another sex act on him, which is not what you would expect from a rape victim. but we do not know if that is true. and the details that he gave on the sex encounter and comments that she made, it was so detailed, it suggested to me that it would be a lot to make up. the jury will have to decide. are those facts insurmountable? >> this is a case where jury selection is tremendous. their attitudes on the types of relationships and how intelligent they are, i would imagine that the prosecutors are going to call experts, doctors, psychiatrists, who will talk about the reaction of rape victims immediately thereafter

and long term. why, if they believe that she performed a sex act after words, why she would do that. and if so, why? >> you are saying -- megyn: you are saying that given the delay, she said that she was a sex crimes prosecutor and she knew what she would have to go through, could that ring true to a jury? >> are they not going to call experts here? this could turn out to be a battle of the experts and a battle of the credibility. they are both going to testify. >> first of all, prosecutors have the burden. they cannot prove that it happened beyond a reasonable doubt, he will walk. here is the other thing. the theory is why would a guy that was 51 all of a sudden just go nuts? that is what they are saying. megyn: he is 30. >> they did not renew her

contract at that office, which i think is an unusual. i think that some of the reasons might be the basis that the defense will put forward as to motive, bias, and interest. megyn: the defense says that she has a history of lying. both sides agree that she sent him a friendly e-mail shortly after the attack, although she says that she did that to put him at ease. >> that is bad. [laughter] forget about what i think, the average juror is willing to have such a problem with that. megyn: it will come down to making credibility assessments, like so many of these cases. thank you both so much. this is by no means an open and shut case. why did she not look for the

rate sooner? why did she send a friendly e- mail to the defendant? or is that all spin from defense lawyers? rape is a serious accusation, the most serious that one can make. let's not rush to condemn either side. let the jury telas. bill: interesting. in a moment, the aftermath of a powerful bomb attack that occurred several hours ago in spain. this is the first time we have seen this tape. check out the flames. who is to blame? coming up. megyn: a hot dog stand with a crime based theme creating controversy in chicago. a bad example for the community? or i harmless fun? -- pun? .

. structured settlements. the experts at imperial can convert your long-term payout into a lump sum of cash today.

megyn: new video from northern spain showing the aftermath and the car bombing at a police barracks. the blast sent dozens of people to the hospital. police came to the scene and one car was thrown hundreds of yards away. similar to the basque group eta. bill: there are a lot of hot dog joins in chicago, but felony francs is getting a lot of attention. some are believing that they

are glorifying crime. carina sonn is reporting. what is this about? >> it is a prison-themed hot dog stand. it has only been open for a coupleç of weeks and it has sen quite a lot of success. we want to show you what the experience is like. if you come into the restaurant, what you say what you want to order is "i would like to plead my case." if you want to take it to go, you are out on good behavior. the menu looks like this. misdemeanor weiner is a big one. the petty pork chop. everything is prison-themed. bill: have there any been -- been any sightings of convicted

felons? >> yes, actually one this morning. bill: i was kidding. >> these ex-cons served their time for various types of crimes, like drugs, but the biggest controversy is around the name, felony franks. they say it is exploiting the çworker and is discriminating. we have to admit, there were prison bars on the front door but that is how the owner bought the building. there is also a bulletproof glass because the neighborhood is apparently not so great. ì(lc@&c+ have been done more tastefully. bill: that is one classic report.

only in chicago, i guess. megyn: what can be more tasteful than misdemeanor weiner? megyn: name may give you a nice glow, but tanning beds are just as bad as cigarettes. bill: homeless people in new york are getting a one-way ticket out of town, even to paris? where else are they going? in as little as six days. six days, that's fast! (announcer) joint supplement pills are history, because elations powerful formula is more absorbable than pills, delivering clinically proven levels of glucosamine and chondroitin in a great-tasting drink you enjoy every day. it tastes absolutely delicious. goodbye horse pills. i've got it working for me. (announcer) elations. the new standard in joint health.

it doesn't cover everything. and what it doesn't cover can cost you some money. that's why you should consider... an aarp medicare supplement insurance plan... insured by united healthcare insurance company. it can help cover some of what medicare doesn't... so you could save up to thousands of dollars... in out-of-pocket expenses. call now for this free information kit... and medicare guide. if you're turning 65 or you're already on medicare, you should know about this card; it's the only one of its kind... that carries the aarp name -- see if it's right for you. you choose your doctor. you choose your hospital. there are no networks and no referrals needed. help protect yourself from some of what medicare doesn't cover. save up to thousands of dollars... on potential out-of-pocket expenses... with an aarp medicare supplement insurance plan... insured by united healthcare insurance company. call now for your free information kit... and medicare guide and find out... how you could start saving.

finally, good news for people with type 2 diabetes or at risk for diabetes. introducing new nutrisystem d, the clinically tested program for losing weight and reducing blood sugar. hi i'm mike, and i lost 100 pounds on nutrisystem d when i was first diagnosed with diabetes, that first step was more like a giant leap. till i discovered nutrisystem d. in a clinical study people on nutrisystem d lost 16 times more weight and reduced their blood sugar 5 times more than those on a hospital-directed plan. plus a1c was reduced .9%. choose from over 140 menu options, there is no counting carbs, calories or points. i lost 100 lbs. and lowered my blood sugar level. nutrisystem d changed my life. mike is one of many who have lost weight and controlled their diabetes with new nutrisystem d. backed by 35 years of research and low glycemic index science nutrisystem d works. satisfaction guaranteed or your money back! new! nutrisystem d. lose weight. live better. call or click today.