details. gregg: great job. thank you. [captioning made possible by fox news channel] captioned by the national captioning institute --www.ncicap.org-- martha: welcome, everybody. i am martha maccallum. we have very big news. the blue dog democrats, they are the more fiscally conservative leading democrats in the house. they have been a big bugaboo. they have been holdouts on a lot of the financial side of this. they believe is too expensive now they say they have a deal in their committee. let's go to james rosen. it is very confusing. there are three different panels

waiting to pass out these bills. give us the big picture of what this means that this panel has reached an agreement. >> you have two chambers of commerce, the house side and the senate side. they both have multiple committees that want in on the action in forming the new health care reform laws. on the house side, two committees have passed their version of the bill for the consideration of the full u.s. house. the third committee has announced it has reached a deal with the so-called blue dog democrats, the fiscal conservatives who were concerned about cost spiralling out of control. the chairman of the third panel, the very liberal member from california, democrat henry waxman. his panel has reached a deal with the blue dogs. that means three out of all three of these house committees will soon have their version of health-care reform out of their

committee and ready for consideration. on the senate side, the senate finance committee is trying to become the second of two committees on the senate side. they are not close to ideal, despite some pronouncements by the chairman of the finance committee, the democrat max baucus of montana. he said he has just received a good rating on the version of the bill that he wants to see passed from the congressional budget office, which is the neutral umpire and referee. the big picture here is that we now have an agreement on the third of the three panels of the house. there's still no agreement on the second of the two panels on the senate side. martha: we are taking a live shot of president obama. he has been getting out there and tell him to people about the health care plan to he must be pleased. the white house was touting the progress. now this has got to make them pleased. >> the white house has been very

involved in these negotiations with the blue dogs tear yet the white house chief of staff rahm emanuel has taken a lead role in trying to persuade them. we have got to remember that despite the fact that this is a director for the house energy and commerce committee, there are many obstacles to go on the house side and on the senate side. they will mark this bill up to the have to reconcile the house versions. when the senate gets together, the two houses have to have a conference. then it goes to a full vote in both houses. then it goes to obama's desk for signature. rick: are we getting any word from the blue dogs on how they plan to pay for the reform package that they have now agreed to? >> according to mike ross, the democrat who is one of these blue dog members of congress,

the plan that they have just agreed to with henry waxman will trim the overall price tag by $100 million. -- $100 billion to you that is an important amount of savings. the price tag will probably be $1 trillion over 10 years through the chairman of the finance committee, max baucus, democrat of montana, announced he has a new rating from the congressional budget office says the plan he is working on will be a little under $1 trillion over 10 years. he says it will reduce the deficit in the 10th year of the plant. there are a lot of gaps to be filled in both of the versions of the bill. to really talk about numbers is premature. i do not think anyone has a firm idea of the exact numbers involved. rick: james rosen, thank you. martha: let's bring in bret.

one of the things that jumped out of me -- the public option which has been discussed in such detail -- at one point in the game, it was extremely important to president obama, that there be a public auction, it exists now. what do you think that means? >> whatever you have in the house side as far as a public auction goes, -- if anyone can be agreed to, it will happen. what comes out of the senate finance committee is seen by many here in this town to be what we will be looking at or closest to it. as the house debates the public auctiooption, and it is signifio

get the blue dogs to sign up, but they're also not going to vote on a full house bill until september. that is also very significant. in the senate finance committee, what you're looking at is a system of cooperatives. state run co-ops that they will try to sell as a public option but it will not be what the true democrats have been fighting for, the federal runt government plan. that is where it is headed. rick: it seems like the momentum is beginning to shift a little bit in favor of getting some kind of a deal done. even though there will not be votes until september. the president put forth the deadline of august 7. he wanted the house and senate to come to an agreement before the recess. does this seem to you that there is sort of a coming together and

that lawmakers are actually getting closer to coming to some kind of agreement? >> i think there is an effort to get something put together on paper from these committees before they go to recess, before friday. you very well may have the senate finance committee -- you heard max baucus say they have a draft of a plan. then the republicans on the committee say they still have a long way to go. they are sending out signals that they have a draft. then you have the blue dogs on the house side signing onto a marked up this afternoon of their bill. the house will have three bills in consideration now. they will have a house vote in the fall. you are seeing the sausage making. rick: there seems to be a republican effort to slow this down. has that effort failed?

>> that is a good question. i do not think it has failed yet. there was a press release that said there is no deal in the senate finance committee. they still have a long way to go, but there is some action here. there are republicans on capitol hill that are very vocal now am wondering if the republicans of the negotiating table, namely break-in member chuck grassley on the senate finance committee, is giving away the store -- ranging member chuck grassley. i make light of the sausage making, but it is how it is turned out. martha: one of the main sausage makers may be rahm emanuel. is he to thank for the last- minute wrangling? >> i am sure he did some arm- twisting. there was a lot of negotiations.

rural hospitals are getting a lot more attention to it that is a big thing for blue dog democrats. you have the cost of the bill going down $100 billion. you have small businesses with a payroll of a half a million dollars or less exempted from the mandate. you have the things the blue dogs would fight for. the white house chief of staff rahm emanuel fought to bring in a lot of these blue dog democrats, recruited them, for the moderate districts. he is responsible for the number of blue dogs in the house. he is probably responsible for a twisted some arms. martha: i do not know how he will come up with anything to talk about tonight. it is one busy town. thank you r. rick: senate finance committee is crafting a plan that relies on nonprofit co-ops.

how does it work? each person pays a set amount of money and then their coverage of to a certain amount each year. the plan grows as more people joined in. paul glover joins us from philadelphia. we do not know exactly what the final health care plan is going to be, but there has been a lot of talk amongst senior lawmakers and the senate about these co-ops. how does it work and why would it be good for americans? >> i do favor extending medicare to everybody, but to make affordable, there needs to be a nonprofit member owned cooperative health system. i started in ithaca, new york in 1997 as an uninsured person myself, believing it would be a

long time for the government to get around to providing a foundation for our health security. rick: the payments are pretty nominal, $100 per year debt to about $3,000 worth of coverage. is the comprehensive enough? do you find that covers all of your health care expenses? >> for the uninsured to have no access or eligibility for government care pictured, nor the capability to pay for hmo, this is a far better than nothing health plan. we are covered for 12 categories of every day emergencies like broken bones and emergencies like burns anywhere in the world that we go and we own our own free clinic.

rick: for those people the other either for or against this public auction, the government- run plan, why would a health co- op be better? >> this creates a nonprofit health infrastructure which will make health care of all dimensions affordable. rick: paul glover is the author of "health democracy pure " mar." martha: it is very interesting. everyone is talking about this health care debate. what would be the better plan? what would work? there are five of the versions on capitol hill. we want to know when you sink. what would you like the health- care plan to look like?

you can post up on our blog at foxnews.com/livedesk. or you can follow us on twitter at twitter.com/livedesk. a lot of people come up with some good ideas. we love to hear from you. now to this story. this is a truly frightening tale in north carolina. is america now becoming a new home base for terrorists? (announcer) big news for stiff joint sufferers.

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martha: you have heard a lot about the blue dogs, the fiscally conservative democrats. they have reached a deal in the energy and commerce committee. this is the third of three panels that were working on the version of health-care reform. all three are about to put forward a health care reform

bill. in it, they cut $100 billion. they will not vote on anything until september. we will go to the details. rick: is the u.s. becoming a home base for international terrorists? seven suspected muslim militants arrested monday in north carolina. the indictment says the six american citizens and one legal resident were plotting terrorist attacks outside the u.s. the fbi and homeland security issue in a nationwide warning. daniel boyd in the upper left- hand corner. he is not the only american allegedly training in the u.s.

for jihad. >> there seems to be a new trend. in the last few weeks alone, we have learned of three different cases. daniel boyd is the most recent one. in long island, there was a man who pled guilty to having trained in pakistan to blow up europe's subways. in minnesota, you have a case of a man who pled guilty on tuesday to have the better part of this group by minnesota of somalis who were going to somalia to carryout jihad. these are three prominent cases of americans training inside the u.s. to carry out jihad. rick: what do we know about daniel boyd? >> he went to my local high school in alexandria, va. it was made famous by the movie

"remember the titans" about the famous high school football team that was integrated in the 1970's. it is now best known for being a school where daniel boyd went to high school. he had a of bringing where he trained in pakistan. he took his son to the gaza strip at one time. rick: hopefully that high school is best known for turning out jennifer griffin. thank you. more on a possible deal on health care on capitol hill tree of the blue dog democrats. we will tell you what we are le. ♪ singer: buckle up, everybody 'cause we're taking a ride ♪ ♪ that can strain your relationships and hurt your pride ♪ ♪ it's the credit roller aster ♪

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rick: the negotiations on capitol hill are fast and furious. apparently a deal amounts to the blue dog democrats on health care reform. the deal will lower the cost by $100 billion. it would exempt small businesses with revenues under 500 per thousand dollars -- under $500,000, and it would make the public option optional. martha: thank you. we have pretty news with health care reform on capitol hill today pure yet -- have breaking news on health care reform. maria, a good move? angela?

>> i think it is a bad decision to it i think it is a great example of how people can come together. traveling in the state of mississippi and doing tea parties, people want to know where this money is going to come from to pay for everything obama is supporting. the state of massachusetts is a small example of what obama wants to promote. i have talked to doctors. it is not working. it is great the blue dogs have come together, but they have come together on the wrong policy. martha: they will say because $100 billion and we work for the rural communities. >> they are going as far as they can, but at the end of the day, you have people who do not have jobs. you have people who are deciding whether to put gas in their cars or put food on the table.

i understand that they cut this, but i believe in what colin powell said, let's start small. we are trying to do everything to fast. martha: i have the feeling that when this goes to the senate finance committee, we may be starting small. what do you sank? --