with their insurance. brand new into the newsroom, and the latest trespass and polls showing a new low for public support of health care reform. 53% of people oppose it, with 42% in favor. that is down 5 points from two weeks ago, down eight points in the last month. so the president is about to go on defense, and they say that these people have not been prescreened for their political views. this could be interesting. protesters and others have been gathering outside all day at portsmouth house -- high-school. we are outside with molly line. what does it look like? >> they are braving the hot weather, and we are about to get underway. and joining me now is the

founder of americans for prosperity. explain why you are here today. >> it is important to bring people together today and make it known that we are not in favor of spending $1 trillion on a piece of legislation that does not solve problems. >> what are you hoping to hear from the president? >> would we pay for this to pose a health care? what are the specifics? the house do issue every committee said that he had not even read the committee. max baucus has said it would be under $1 trillion, but we want answers. >> we also have someone else who has a personal story. what are you here today? >> i am here to support the president's plan. my sister recently lost her health care and they were lucky enough for their husband to have

kidney surgery before losing their health care. i have heard so many stories of health care leading to bankruptcy, and there really needs to be another option out there. >> this is just a small glimpse of some of the stories we are hearing today. back to you. trace: thank you. juliet: mike emanuel has more on what we can expect today. how has the message changed? >> they will talk about what is in it for people who are happy with their health care. we have heard that recently from the president, but he will continue today. he will be introduced by a woman who has a pre-existing condition and cannot get insurance. the white house says questions have not been prescreened, neither have the people, so it could be a very lively discussion. about 1800 people inside.

if someone gets a boisterous, the president will try to calm them down and try to have a civil discussion. they are really downplaying any possibility that this town hall could get derailed. he has done hundreds of them and is not that worried about it, but there is a bit of "blame the media" going on right now. robert gibbs has said that the media is covering the controversy, but not the issues. trace: just to give you a look inside the high-school. when the president begins to speak, we will bring you there. i want to bring in, for this so- called retooled message, a writer and contributed to fox news. from these town halls, it appears that democrats are

losing ground on the debate. >> i think they are. numerous polls, not just the rest to send polls, showing little support. i found what mike emanuel just said interesting. robert gibbs is complaining that people are not focused on the details of health care reform, and instead of fighting and back and forth about town halls. that is surprising. i think they are quite happy that people are focusing on the back and forth, and i think the white house has driven this strategy by making the people and against health care as villians. they are happy to have this destruction, i think. trace: they made it clear, and they know that some people may get angry about this and do some yelling and screaming.

>> that is good for the white house. they know how the president would handle this. he was good in the campaign. he has been good at handling this type of pressure. one of the things that people liked about president obama was his eager anemone. he was able to explain the facts and still be cool as a cucumber. i think we expect to see the same thing again. the problem he faces as it is people at the end of the data are not buying the substance of his reform, so he has a difficult case to make. trace: i think that is a fair point -- is this the president? the president is walking up right now. we have a few seconds to talk before the president takes the microphone, but his message has changed a couple of times in this debate. >> yes, now is health insurance

reform. i think we are likely to see him change the message again today and continue to focus on the people who have insurance, and say that this is what this is going to do for you. trace: 70% of the country believe that health care is good the way it is. he needs to sway those people and say, you have a lot to lose. let's listen to the president. [applause] >> thank you. thank you so much. everybody, have a seat. >> i love you! >> i love you back. it is great to be back in portsmouth, great to be back in new hampshire. [applause]

i have to say, most of my memories of this state are cold. [laughter] it is good to be here in august. there are a couple of people i want to have knowledge here who are here as special guests. first of all, principal jeffrey collins and deportment high- school students. thank you. our host for the day. your own outstanding governor, john lynch. and his wonderful wife, dr. susan lynch, the first lady of new hampshire. your u.s. senator doing a great job, and ginnie sheen. [applause] the governor of the great state of maine, and we are glad he is here today.

[applause] two of my favorite people, they are just taking congress by storm, paul hogues, cheryl kaye- porter. [applause] and we have your own mayor, tom farrini. [applause] now, i want to thank, more than anyone, laura, for the introduction. and for sharing her story for the rest that -- with the rest of us. thank you. her story is the same kind of story i have read in letters and

heard in town hall meetings just like this one for the past five years. in fact, some of you were in thethose meetings. their stories of americans held hostage by health insurance companies who either drop their coverage or charge fees they cannot afford, for care that they desperately need. i believe is wrong. it is bankrupting families and businesses and that is why we are going to pass health insurance reform in 2009. [applause] now, this is obviously a tough time for families here in new hampshire and across america. six months ago, we were in the middle of the worst recession of our lifetimes.

i want you to remember what things were like in january and february. we were losing 700,000 jobs per month. economists of all stripes feared a second coming of the great depression. that was six months ago. that is why we acted as fast as we could to pass a recovery act that would stop the freefall. i wanted to make sure everyone understands what we did. one-third of the money in recovery when to tax cuts which already started showing up in the paychecks of 500,000 working families in new hampshire. [applause] we also cut taxes for small businesses, on the investment they make, and over 300 small businesses have qualified for new loans backed by the recovery act. that was one third.

another one-third of the money in the recovery act is for emergency relief for folks who have borne the brunt of the recession, so we have extended unemployment benefits for 27,000 new hampshire residents. [applause] we have made health insurance 65% cheaper for families who rely on cobra while they are looking for work. [applause] and four states that were facing a historic budget shortfalls, we have provided assistance that has saved the jobs of tens of thousands of workers who provide essential services like teachers, police officers. so if prevented a lot of painful cuts in the state, but also state and local tax increases. the last third of their recovery act is for investments that are already putting people back to work.

these are jobs resurfacing bridges and pavement, drums and the community health centers here in portsmouth, that will be able to serve up to 500 new patients. these are good jobs that americans are doing. by the way, most of the work is being done by private, local business. that is how we will grow the economy again. there is no doubt the recovery act has helped put the brakes on the recession. we saw last friday that picture is beginning to turn, starting to see signs that business investment is coming back. new hampshire, that does not mean we are out of the woods. it does not mean that we can sit back and do nothing while some money are still struggling. even before this recession hit, we had an economy that was working pretty well for the wealthiest americans, pretty well for wall street bankers, as

well for big corporations, but it does -- it was not working very well for everyone else. we cannot go back to a bubble- bust economy. if we want this country to succeed in the 21st century and if we want our children to succeed in the 21st century, then we need to take the steps necessary to lay a new foundation for economic growth. we need to build an economy that works for everybody, not just some people. [applause] now, health insurance reform is one of those pillars that we need to build on that foundation. i do not have to explain to you that nearly 46 million americans do not have health insurance

coverage today. in the wealthiest nation on earth, 46 million of our citizens have no coverage. if something happens, they go bankrupt, or they do not get the care they needed. but it is just as important that we accomplish health insurance reform for the american to do have health insurance, because -- [applause] because right now we have a health care system that too often works better for the insurance industry than it does for the american people, and we have to change that. [applause] let me start by setting the record straight on a few things i have been hearing. [laughter] about reform. under the reform we are proposing, if you like your doctor, and you can keep your

doctor. if you like your health care plan, you can keep your health care plan. you will not be waiting in any lines, this is not about putting the government in charge of your health insurance. i do not believe anybody should be in charge of your health insurance decisions except you and your doctor. [applause] i do not think government bureaucrats should be meddling, but also do not believe the insurance company bureaucrats should be meddling. [applause] now, we just heard from laurie on how she cannot find insurance because of her medical condition. she is not alone. the recent report showed in the past three years, over 12 million americans were

discriminated against by insurance companies because of a pre-existing condition. either the insurance company refused to cover the person, or they dropped coverage when they needed it most, or they refuse to cover a specific illness or condition, or they charged higher premiums for out-of- pocket costs. no one holds these companies accountable for these practices and i have to say, this is personal for flooring, and it is personal for me. i talked about this when i was campaigning. i will never forget my mother as she fought cancer in her final months, having to worry about whether insurance would refuse to pay for treatment. by the way, this was because the insurance company was arguing that somehow she should have known that she had cancer when she took her new job, even though it had not been diagnosed. if it can happen to her, it can happen to anyone of us.

i have heard from so many americans that have the same worries. one woman testified that an insurance company would not cover her internal organs because of an accident she had when she was 5 years old. think about that. that covers a lot of stuff. [laughter] you know, they are only going to cover your skin. dermatology -- that is covered. nothing else. [laughter] another story when the year insurance company canceled his chemotherapy in the middle because he did not know he had gall stones. that was wrong, and that will change when we pass health care reform. [applause]

under the reform we are proposing, an insurance company will be prohibited from denying coverage because of a person's medical history, period. [applause] and they will not be able to drop your coverage if you get sick. they will not be able to water down your coverage when you need it. your health insurance should be there when it counts, not just when you are paying premiums, but when you actually get sick, and it will be when we pass this plan. [applause] when we pass health insurance reform, insurance companies will no longer be able to place an arbitrary cap on the amount of coverage you can receive in a given year, or lifetime, and we

will place a limit on how much you can be charged for out-of- pocket expenses. no one should go broke because they get sick. [applause] and finally, this is important -- we will require insurance companies to cover routine checkups and preventive care, like mammograms, cost of these -- colonoscopies. [applause] there is no reason we should not be catching diseases like this on the front end. it makes sense, saves lives, and it also saves money, and we need to save money in this health care system. this is what reform is about. for all of the shouting and yelling and noise, what you need to know is this. if you do not have health insurance, you will finally have

affordable option once we pass reform. [applause] if you do have health insurance, we will make sure that no insurance company or government bureaucrats get between you and care that you need, and we will do this without adding to our deficit over the next decade, largely by cutting the waist and insurance company giveaways in medicare that are not making any of our seniors healthy. before i start taking questions, there has been a long and vigorous debate about this, and that is how it should be. that is what america is about. we have a vigorous debate. that is why we have democracy. but i do hope that we will talk with each other, and not over each other.

[applause] because one of the objectives of democracy and the day is we start refining our own views because maybe people have different perspectives and it is something we did not think of. where we disagree, let's disagree over what is real, not the wild mr. visitations that does not represent anything in the proposal. the way politics works sometimes it is the people who want to keep the way things are will try to scare the heck out of some folks, and they will bring bogeymen out there that are just not real. this is an important and complicated issue that deserves serious debate. we have months to go before we

are done, and years after that to phase in these reforms to get them right, but i know despite the hammering pundits and the best efforts of those profiting from the status quo, we are closer to achieving health insurance reform and we have ever been. we have the american nurses association supporting us, the american medical association is on board. [applause] america's doctors and nurses know first hand how badly we need reform. we have broad agreement in congress on about 80% of what we're trying to do, the agreements from drug companies to make drugs more affordable to seniors. we can cut the doughnut hole in half if we pass reform. [applause] we have a party on board because they know this is a good deal for our seniors. [applause]

but let's face it, now is the hard part. history is clear. every time we come close to passing health insurance reform, special interest to fight back with everything they have. they use inference, they use their political allies to scare and mislead the american people, they start running ads. this is what they always do. we cannot let them do it again, not this time. not now. [applause] because for all the scare tactics of their, what is truly scary, what is truly risky, is if we do nothing. if we let this moment pass and keep the system the way in is, we will continue to see 14,000 americans lose their health insurance every day. your premiums will continue to skyrocket. they have gone up three times

faster than your wages and they will keep on going up. our deficit will continue to grow because medicare and medicaid are on an unsustainable path. medicaid is slated to go into the red in about a to 10 years -- 8 to 10 years. if i was a senior, that is what i would be worrying about right now because we are not getting a good thing from auerbach. insurance companies will continue to profit by discriminating against people for the simple crime of being sick. that is not a future i want for my children, not a future i want for the united states of america. new hampshire, i was up here campaigning a long time ago. a lot of you came to my town hall events, some of you voted for me, some of you did not. but here is one thing i have to say. i never said change would be easy.

if it was easy, it would have already been done. change is hard. and it does not start and washington. it begins in places like portsmouth, with people like lori who have the courage to share their stories and fight for something better. that is what we need to do right now, and i need your help. if you want a health care system that works for the american people as well as for the insurance companies, i need your help knocking on doors, talking to your neighbors. spread the facts. let's get this done. [applause] thank you. thank you. [applause] >> yes, we can! >> i remember that.

everyone have a seat. this is the fun part. first of all, left bank of the band. i did not see them over here. thank you. great job. [applause] we do a lot of town hall meetings here in new hampshire, so everyone knows the basic outline. if you have a question, raise your hand. there are people with microphones in the audience. i am going to try to go the girl, boy, girl, boy to make sure it is fair. if i hear only from people who agree with me, i will actively ask some people concerned about health care, give them a chance to ask their questions. i think we need to make sure that we surfaced some of the

concerns that people have, some of them are legitimate. i will try to get to as many questions as i can, but if you would keep your question or comment relatively brief, then i will try to do the same with my answers. ok, we are going to go around the room. i will start with this double men right here. please introduce yourself. -- john and right here. >> i am a state representative from dover. i'm a senior citizen. i have a wonderful government- run health care plan, and medicare. i like it, it is a portable, reasonable, no one tell me what i need to do. one of the things you have been doing in your campaign to change this situation is you have been striving for bipartisanship. i think that is a wonderful idea, but my question is, if the

republicans actively refused to participate in a reasonable way with reasonable proposals, isn't it just time to say we are going to pass with the american people need and want without the republicans? [applause] >> let me make a couple of points. first of all, you make a point about medicare that is very important. i have been getting a lot of letters, pro and con for health care reform, and one of them that i received recently -- a woman was very exercised about what she heard about my plan. she said i do not want government-run health care. i do not monumentally in the marketplace. keep your hands off my medicare. [laughter] true story. i do think it is important for, particularly seniors, who

currently receive medicare, that if we are able to get something right, like medicare, then there should be more confidence that maybe the government can have a role -- not a dominant role -- but a role in making sure that people are treated fairly when it comes to insurance. under our proposal, the majority of americans will still be getting their health care from private insurers. all we want to do is make sure private insurers are treating you fairly. so that you are not buying something where you fail to read the fine print, and next thing you know, when you are sick, you have no coverage. we also want to make sure everyone has some options. there has been talk about this public auction. this is where this talk about government takeover comes from. all we want to do is set up some options, where if you do not

have insurance, or underinsured, you can have the same deal that congress has. is a menu of different health care plans, and you will be able to select the one that suits or family best. i do think having a public auction as part of this would keep the insurance companies honest. if they have a public plan out there that they have to compete against, as long as it is not being subsidized by taxpayers, that will give you something that is sort of a good bargain for what basic health care would be. [applause] now, i think there are some -- my republican friends on capitol hill -- who are sincerely trying to figure out if they can find a health care bill that works.

chuck grassley of iowa. olympia snowe of maine. i have to admit, i like her, too. they are diligently working to see if they can come up with a plan that they can get both democratic and republican support. but i have to tell you, when i listen to folks like laurie, and families across america who are just getting pounded by the current health-care system, and when i look at the federal health care budget, and realized if we do not control costs on health care, there is no way to close the budget deficit. it will just keep on skyrocketing. when i look at those two things, i know we have to get it done.

my hope is to have it done in a bipartisan fashion, but the most important thing is getting it done for the american people. [applause] this young lady right here. she is still enjoying her summer. when you go back to school? >> i go back september 3. >> what is your name? >> julia, from massachusetts. as i was walking in, i saw a lot of signs say mean things about reform and health care. how do kids know what is truth and what can you to learn more? >> i have seen some of those signs. [laughter]

let me be specific about some things that we have been hearing of lately that we need to dispose of. and the rumor that has been circulating a lot lately is this idea that somehow the house of representatives voted for death panels that will basically pull the plug on granmdma because we have decided that it is too expensive to let her live. and there are some variations on this theme. it turns out this came from a provision in one of the house bills that allowed medicare to reimburse people for consultations about end of life care, setting of wills,

availability of hospice, etc. the intention of members of congress was to give people more information so they could handle these issues like and like health care, when there are ready, on their own terms. i think this is where the rumor came from. the irony is, one of the chief sponsors of the bill originally was a republican, that house member, now senate member, who thought that this would expand people's options. somehow it has gotten spun into this idea of death panels. i am not in favor of that. i want to clear the air here. in fairness, the underlying argument needs to be addressed, and that is people's concern

that if we are reforming the health-care system to make it more efficient, which we have to do, the concern is somehow that mean rationing of care. some house some government bureaucrat will be saying, you cannot have this test, you cannot have this procedure because some bean counter decided this was not the best way to use health care dollars. this is a legitimate concern, so i want to address this. we do think that systems like medicare are very inefficient right now, but it has nothing to do at the moment with issues of benefits. the inefficiencies come from things like paying $177 billion to insurance companies in subsidies for something called medicare advantage that is not competitively bid, so insurance

companies get $177 billion of taxpayer money to provide services that medicare already provides, and it is no better -- does not result in better health care procedures. it is a giveaway of $177 billion. think about what we could do with $177 billion over 10 years. i do not think that is a good use of money. i would rather spend that money making sure that lori had coverage, the people who do not have coverage get some subsidies, instead of subsidizing these insurance companies. [applause] another way of putting this is, right now, insurance companies are rationing care. they're basically telling you what is covered and what is not. they are telling you, we will

cover this drug, but not that one. you can have this procedure, but not that one. why do people prefer insurance companies making those decisions rather than medical experts and doctors figuring out what are good deals for care and giving that information to you so that you can make that decision? i recognize there is an underlying fear here that people will somehow not get the care they need. you will have not only the care you need, but the care that right now is being denied to you, only if we get health care reform. that is what we're fighting for. [applause] all right -- trace: he has taken a couple of questions now.

you might be wondering -- we told you this was not a prescreened crowd. that these people -- the white house says the expected people to come in and yell and show a little bit. we have not seen that. we have seen a very friendly crowd so far. we are told about 70% of those tickets were given on a lottery- type of basis, and clearly for different congress people. one of the major part -- concerned that people have is the single payer issue, universal health care. back in 2007, a candidate obama spoke in the same city as he is today and said i believe by the end of my first term in office we will have a universal health care system instituted in this country. that is a commitment i have made and a commitment on want to be held accountable for. with me now is an economist with the "wall street journal."

first of all, i want your opinion on the crown. it seems like very friendly surroundings. >> i think the white house is trying to maintain a friendly crowd. with all due respect, no white house wants to let a president go into a crown that is no holds barred. trace: but there has to be a happy medium. we have seen all of the ceiling and screaming, and the president holds a town hall, and it looks like it could be a campaign stop. >> the president is trying to recapture control in the debate over health care. when you are selling this issue, his signature issue, there is no better spokesperson and the president. he has to be out there doing this. they are trying to control the environment. we noticed one thing. it is no longer health care reform. it is health insurance reform. trace: but he did say health care insurance at one point. >> either way, this is trying to

get control on a issue that has gotten out of hand. they have control in congress. it should be easy to pass if they want to, but they're obviously having problems. juliet: nancy pelosi calling some of these americans -- protesters un-american, are you surprised at the tone that he himself has taken, instead of letting the arms of his administration do it for him? >> i do agree that this is not very presidential. to me, it is just someone losing the debate. you have to answer the questions they have. all presidents want to characterize themselves one way and their opponents another, but the rhetoric has been quite heated, especially when you talk about these e-mails trying to

debunk these myths and rumors. juliet: we talked about how this seems to be a tame audience. don't you think democratic supporters want to see a real honest to goodness town hall? most people would say that this looks like the owner. >> each side tries to control their own things. you see that on both sides. the questions are what matters. juliet: but you want to see the president in front in a fiery crowd. >> i think he needs to do that. they have the votes. the reason they are not doing this right now is because democrats are not comfortable with where this is going. trace: if you want to continue watching the town hall, 02 foxnews.com . go to foxnews.com. the president says he has the

american medical association, american nurses association on board. what he does not have, according to polls, is the american people. >> i think people are looking at the health-care debate through the eyes of stimulus. one mistake that he made was spending so much on stimulus. when the republicans went along, they labeled as a tax-and-spend bill. now things are looking different. there are looking at health care through that prison. some of the things the president is saying now about health care are some of the same things that he said in 2007, but we have different problems down. -- now. trace: thank you. tucker carlson is a senior fellow at the cato institute and a fox news contributor. of the cnn desk is a former political average manager for rock the vote. we also have the senior writer

for "weekly standard. this was supposed to be billed as getting down to the nitty gritty. everyone is welcome. we have seen the screaming and yelling over the past several weeks, but we have this town hall that looks very friendly. >> bill is right, all president trying to manage the audience, and all presidents lie about it. this one is clearly falling that tradition. there is no way that this was not a screened meeting. i will vote -- that my car on that. -- put my car on that. by the way, i think that it was smart to talk about this as a battle against health insurance companies, not health care. everyone kind of dislikes health

insurance companies. they have changed the language and i think it signifies a pin in their strategy. trace: felicia, you have seen the polls. 53% of american people do not like this. independent voters are fleeing in record numbers. if you are watching this town hall, don't you want the president to have some screaming and yelling, don't you want a president to enter some of these questions? >> part of the reason the poll numbers have gone away, i agree that the rhetoric has gotten away from the president. we need to refocus it so that we are talking about insurance companies and the fact that these issues are affecting a middle-class families and everyone working for a living off to be able to kid -- take their kid to a doctor -- trace: hang on a second. the white house said they expect people to come in there and

raise hell. we have not seen that. don't you want to see that? >> i do want to see a little bit because i know barack obama can handle it. the american people need to have their fears tackle head on. juliet: a pleasure to have you on fox news. you just said the rhetoric has gotten away from president obama. we just spoke with bill mcgurn, wherein he is accusing some of these people as those fighting this status quo. the rhetoric is coming from him, don't you think? >> i think in part -- there are a lot of lies and rumors out there, and it is the role of the president to tackle the spirit burns of who started it, it is up to them to really speak to the american people. juliet: his supporters are saying that the senators are

hired guns. but this is politics, this is the dirty little secret of politics. >> isn't this what you want? in vigorous debate about the details? i thought that is what democracy is? juliet: i think most americans would prefer not to have hired guns in the audience. >> been described -- it depends on how you describe them. these are citizens who are voters and they have a financial interest in them. don't we all have an interest in this? everybody has a stake in the future. trace: let me bring in steven haze. this is the arlen specter town hall. this is some of what we had. >> let's focus on those minor

problems, tort freform. focus on helping people carry coverage to a new job. leave us alone. that is all we want. leave us alone. [applause] trace: that done on men will be with us in the next hour. what they are saying is you want to change the entire picture. you want to change the entire scheme of health care for those who are uninsured, but we like it the way it is. it is a very tough sell when americans feel like they have more to lose than they do to gain. >> two points. that tone is the very kind that skeptics of the program should be taking. there are dozens and dozens of death -- of question that you could use to track of elected officials who are pushing an overhaul of the health-care system. the second substantive point is perhaps more important -- where

is tort reform? many doctors have talked to me about practicing defensive medicine. call for tests so that you can point back to them in the event that you are sued. i did every test that i could think of. you cannot sue me because i was as careful as i could be. those tests are expensive. you have seen estimates of up to $100 billion or more, and tort reform is not part of the discussion. trace: thank you. meantime, take a look at this recent poll. this is how americans feel. 60% of americans polled made their health insurance as either good or excellent. but do you really know what is

in your plan? what if you really got sick? a cardiovascular surgeon breaks it down for us. do they run every test on you they possibly can because they are afraid if they do not they will be sued? mm

the juliet: welcome back. martha maccallum will be back later on this week. take a look at what is happening in portsmouth, new hampshire. there you see president obama's taj mahal. we have been on foxnews.com, so if you want to watch, you can go ahead and do that. divers are back in the hudson river today looking for wreckage of the a helicopter and

an airplane. in the bottom box, hillary clinton is in africa meeting with the president of the condo. -- condo. yester day -- congo. yesterday, a student after a question that perhaps was lost in translation. >> president obama and you have constantly stated that we would be allowed to keep our current plans, but how can we keep them if they do not exist? more specifically, hr 3200, why does this bill impose a payroll tax on employers who will not use the public aoption? trace: that was from a town hall with arlen specter. people concerned about losing

the coverage they have because employers would stop carrying it. most americans like their plan. but consider this from today's (washington post." it says -- with me now is a cardiovascular surgeon. welcome. i want to go back to some of this stuff we were talking about earlier, this belief that if you like your health insurance, you'll get to keep it. as a doctor, do you believe that is the case, ward if the public option comes in, they push of private insurance, and you

cannot keep it? >> i think that is true. it is concerning to physicians. the most time-honored relationship is that patient- doctor relationship. patients are concerned when anything comes in between the patient and physician, such as the government. they are concerned with the new proposal, 55 new agencies, and the $500 billion in reductions to medicaid services, that this will limit their access. trace: one of the things the president said is that people want medicare because it works. what he left out is medicare is hemorrhaging money, it is broke. >> it is, and there were reductions in physician fees year after year, such to the point that it is impossible for physicians to make ends meet. we are small business, too.

we are getting hammered to the point where health care delivery is being jeopardized. trace: what about the charge that doctors routinely order every test on the planet just to cover themselves? that way if they are sued, they can say that they were tested for everything. is that true, and is poor performer -- tort reform the key to lowering cost? >> definitely, it is. we pay half a million dollars a year in malpractice coverage. no, we do not order every test and the book, but we are specific in the one that we order to make sure that we are covered. tests are repeated. when they come in from outside hospitals and we feel like they are inferior, were not up to our standard, we go ahead and test

again. trace: thank you. juliet: the ntsb trying to figure out what happened in the final minutes before last week than the mayor collision, a small helicopter colliding with an airplane. we will take a look at the cockpit of the same model airplane involved in the crash. ard work equals success." well, you're looking at, arguably, the world's most successful businessgecko. 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.

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you just heard from the president in new hampshire about his plan to overhaul health care in his first of three town halls scheduled this week. welcome back to "the live desk." juliet: the ground there, largely respectful, which was a surprise to some. some even chanting the familiar campaign slogan "yes, we can." but a brand new press and poll shows us a different story. trace: 42% approve of this health-care plan. with me now is independent pollster scott rasmussen. we are talking about a slip in the past month, and in the past four months. there is true emotion in this plan. >> when this debate began, 50% were supportive, only 45% were

opposed. it is pretty much across the board, republicans have been opposed to the idea. now 62% of the unaffiliated voters are opposed to the plan, 51% strongly opposed. trace: you talk about defense. you have these independent voters who are fleeing in record numbers. how do you get them back on board? i was talking to a doctor who said, here is the deal -- he says he has the american medical association, american nurses association. if only he had the american people on board. >> the erosion began when the cost estimates came in. when people hear $1 trillion on top of growing deficits, that is cause for concern. there's also a general reluctance to embrace a government solution.

50% of people said that they fear the government more than private insurance. you have this general skepticism of government. and then there are so many uncertainties about what is in the bill. people are naturally skeptical about a large new government program. it will be tough to convince people in the short term that there is something positive for them. juliet: how much of the dwindling numbers have to do with the public is based -- this taste of the tone that he has taken on, and how much has to do with the actual policy itself? >> there is a little bit of a mix. most americans are generally frustrated with congress members who say that they do not have time to read the bill. there's also evidence that while people sympathize with people at town hall events, they are not thrilled with the protesters themselves.

right now there are a series of factors come into play. ultimately, the real issue here, cutting through each specific debate, most americans are hopeful of their health insurance. what they are thinking about in terms of reform is cost reduction. right now people believe the current plan would increase costs. only 19% believe that it will decrease costs. until that turned around, the president will have a tough time. trace: i want to read something that rahm emanuel said. he was talking about these town halls across the country. he said -- according to your numbers, these things are apparently loud and

very effective. >> as you read that, it sounds to me that he is describing the typical political campaign. never any substance. that is what we are in right now. in the latest survey only 26% are strongly in favor while 44% are strongly opposed. it is hard to build on that swim basis of support. trace: thank you. juliet: from chance of yes, we can, to a totally different vibe in lebanon, pennsylvania. arlen specter receiving a bit of a tongue lashing. do we have it? ok, just to let you know -- there was all lot of screaming. we will get that tape to you if you have not already seen it.

we have another town hall to go to today. david lee miller is in pennsylvania. tell us what happened this morning because we did not get to see the fight. >> some would describe it as controversial -- confrontational. it never really got out of hand but there were about 200 people in the meeting hall, while it is a given number did not and waited outside demonstrating. 30 in total were preselected randomly to ask questions. of them, i counted only one which had negative things to say about the proposed changes to health care reform. one member of the audience in particular was not happy with the format of the event. he felt it was rigged and needed to speak out. there was something of a dramatic confrontation. here's what happened. >> i have got news for you. you and your cronies in the

government do this kind of stuff all the time. [applause] i don't care. i don't care how dam creek could you are. i am not a lobbyist. you are cheating the citizens of this country. i will leave, and you can do whatever the hell you please do. >> this particular individual decided to leave rather than participate, but the bottom line is, speaker after speaker had essentially the same message. in their view, government cannot be trusted with health care. they say it is going to be a potential disaster that is going to cost well over $1 trillion. the juliet: that was a bear reach stressful moment, especially for viewers watching.

at one point, someone else try to physically grabbed him to leave. i think it was a security guard. one was a reaction from senator specter? >> he spoke briefly with reporters. i asked him if he felt like anything was accomplished today. he thought about it for a moment and looked at me and said he was not sure. that said, he is not giving up. he will be at another town hall meeting in a few hours, so clearly the center has that knowledge is is among the most difficult meetings of mind 30 years in the senate. as to what good it will do for either side, that remains uncertain. you have two groups here who are very entrenched with the belief that what they're doing is right. juliet: thank you. one man inside the town hall was very composed, but he was still

looking for some answers. >> those minor problems, let's focus on tort reform, helping these people carry their coverage over if they change jobs. but leave us alone. that is all we ask. juliet: we will be talking to this gentleman in a minute. trace: first, lost in translation. the secretary of state loses her school that triggers this response. >> you want my opinion? i will not be channeling my husband. trace: and a powerful earthquake rocked tokyo ylenol... a day on the days that you have arthritis pain, you could end up taking 4 times the number... of pills compared to aleve. choose aleve and you could start taking fewer pills. just 2 aleve have the strength... to relieve arthritis pain all day.

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trace: in the top box, a live look at portsmouth, new hampshire, president obama's town hall. it has been going on for about one hour. we are monitoring it for you and streaming it on foxnews.com. any contentious question, any type of yelling, you bet we will bring it to you. eunice kennedy shriver ties today at the age of said it -- 88. in the bottom box, 300 people

rescued after a japanese village was consumed by a typhoon. juliet: once again, this town hall meeting is being foxnews.com on our website. back to that fired up crowd at arlen specter's meeting earlier today. he received an earful from his constituents. some four, some against health care reform. our next guest is someone that you saw earlier in the video. alan, thank you for joining us. what was your biggest concern going into the meeting? what was the impetus for you being there? >> the senator said down some invitations. i claim -- came with the primary burden as health care. hr 3200 was my biggest concern, and i was here to talk about that. in juliet: are you a supporter

of president obama? were you called in by anyone? that was the rhetoric for the past few days that people were being organized. >> nothing like that. again, i received the invitation and i came as a citizen. i am not a supporter of president obama and certainly not of hr 3200. juliet: why would you call it disasters? >> believe it was written with the intent for the government to control our lives from birth to death. there are references and there, spacing of children, levels of care and benefit, preferences to end of life issues, people getting council every five years. that is not the government's business and i think they need to get out of it and leave us alone. and juliet: i assume you have not been able to catch much of

his current on all meeting that is happening in new hampshire. one of the things he talked about was having the support of the american medical association, american notions association. he was critical of the insurance companies. what do you think of that? >> if insurance companies need attention, it should be done in a narrow setting. that is the way the problem should be addressed. they are overhauling the system. polls show that most people are satisfied with their care. there are a few problems that need attention, and tort reform when definitely be part of that, but that is not getting any attention. they are talking about covering illegal aliens. i would point out that senator specter committed today that he would not vote for a bill that provided health care for illegals. everyone i talked to said that probably when the administration deals with this immigration

problem, they are going to make them legal and then include them in the program. juliet: once the crowd was able to speak with the senator, how did everyone feel? >> there were 250 people in there, i think there were five people who were for the program. i think that sentiment continued even after. trace: authorities have said that they had stopped a terrorist suspect. kuwait officials say that it was targeted for a u.s. base in the southern part of the country. six men with links to al qaeda are now under arrest. they allegedly confessed to buying a truck and were going to loaded with fertilizer, chemicals, and gas cylinders, and then ran into the camp. we are also learning new details about that controversial

homeland security report, warning about threats from the so-called white wheat -- right- wing extremists. remember that? it seems that the details were put together by media reports, not from intelligence. shannon bream is watching this from washington. how did this new information come to light? >> of course in the report remember -- focuses on right wing extremists, and that there was a lot of question about how the report came together. americans for limited government is one of the groups that led to the dhs and filed a freedom of information act, asking how they based their threat assessment. apparently, when they got back was a series of links to media reports and websites saying we monitored reports and we were hearing about these right-wing

groups in the media. a lot of people have a problem with that being the methodology of coming up with a threat assessment from a governmental agency. trace: what is standard operating procedure? is this normal? >> that is what we're trying to find out. we know that they look at high level of intelligence information moving through many different levels of the administration looking at the different threats out there domestically and internationally, but there are very few reports that we know of that news media reports as a basis. here is what one representative from that group had to say about how this came together. >> how can you take anecdotal information from a wide variety of new sources, most of which are from the left, and extrapolate that across the board to a threat assessment that goes out to law enforcement agencies across the country?

it does not make sense. >> a lot of people do not think that was the appropriate way to focus on any potential threat. trace: the department of homeland security, what are they saying? >> we do not have a direct response. it is important to note, after this came out, a lot of heat was directed at the secretary. and janet napolitano said that perhaps the proper terminology was not used, but no direct response to the development. trace: just a quick reminder, hillary clinton is the secretary of state, not her husband. it is a good bet that this university students will never forget that fact. >> we have all heard about chinese contracts in this country. interferences from the world bank against this contract.

what does mr. clinton think, through the mouth of mrs. clinton, and what does mr. much, both think about the situation? -- motumbo think about the situation? >> you want me to tell you what my husband thinks? my husband is not the secretary of state, i am. i will tell you my opinion. i will not be channeling my husband. trace: hmm. actually, it was the translator's problem. the student wanted to know what was president obama's response. the student told her that he was misquoted and they ended up shaking hands.

hmm. talk about lost in translation. juliet: you can kind of understand it. she had been traveling a lot, is tired. trace: we are trying to bring you developments about the wreckage over the hudson river. that crash has also raised serious concerns about the rules for private pilots. up next, we will give you a pilots-eye view of what the dangers are and how they are being dealt with. two medium cappuccinos,

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give to save lives and reach for the cure. call now or log on to childrensdiabetesfoundation.org. trace: there is breaking news from jefferson college in hillsboro, missouri. that is claire mccaskill. the people there watching and say that so far this have gotten pretty contentious. we are going to listen in a little bit. >> a co-op instead of a public option. a co-op would be a pooling of risk in a non-profit company that could also compete with private sector. thank you for your question. [applause] the next question is from don

berra. would you like to ask her question, or would you let me to read an offer sheet? >> [inaudible] >> this question is about tax dollars for abortion? here is his question. can you promise my tax dollars will not fund abortion? i can tell you, there is not one word in the bill that would allow federal tax dollars to be spent on abortion. >> it's not true! >> next question. >> could i please respond to your answer?

>> you want me to say why? you want to respond? ok, i will give you a minute. >> the associated press, usually a liberal group has talked about obama coverage. a few weeks ago katie couric interviewed our president. she asked, do you favor a government option that would cover abortion? president obama replied, -- and i am leaving out all of his introductions -- [inaudible] he admits he is pro-choice and says let's not get sidetracked

on the abortion debate. [inaudible] 49 legislators have agreed that hr3200 will cover abortion. [applause] a congressman from indiana moved an amendment. representative bob sanders acknowledged the bill will cover abortion, like others have said. lynn woolsey, democrat, compared covering abortion to covering [inaudible] >> sir? i understand the point you have

made, and i appreciate it. let me address it. [applause] federal law now is that no federal money can be used to fund abortion. there is nothing in the senate bill that had been proposed, i have read every page -- 621 pages. >> [inaudible] >> no, that is a house bill. not a senate bill. we will be voting on the senate version. we are not voting on the house bill. the house has not even finished and voted on a bill yet. there are three versions of the house bill that have been proposed. there will be two versions of the senate bill. the house will eventually vote on one version. it has not been determined which version they will vote on.

in the senate, we do not have a bill out of the senate finance committee. ok? so there will be two bills in the senate. one of them is already out, and if anyone wants to read it, health.senate.gov. it is 600-some pages, and the committee has 10 and republicans, 13 democrats, and over a few days, there were 789 amendments offered in the markup. 290 of those were actually considered by the committee. actually, 31 amendments were adopted by the committee offered by democrats, and over 160 amendments adopted that were offered by republicans. now that is the senate bill that i have to study and read so far

that i will be called upon to potentially vote on. there is nothing in that bill -- and i will not vote for a bill that changes the federal law in terms of funding abortion. thank you for your question. [applause] >> [inaudible] >> do you see how big this room is? we have to be fair. so many people want to speak. do you want to be fair to your fellow patriots and give them an opportunity to speak? that would be terrific. thank you. [applause] bill wooldridge asked basically the same question. i want to be fair to him. he asked about the funding of abortion. i want him to stand up to ask it is -- a different question since this question has been asked. trace: that is jervis in college

in hillsboro, missouri. we are just trying to show you the angry questions. those for and against health care. continuing coverage on "the live desk."

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trace: that is a live look at jefferson college, missouri. claire mccaskill is holding her town hall meeting. she did this yesterday and again today to get a feel for the public is. we can tell you from brand new polling from rasmussen, 53% of those polled are against health care reform. in the meantime, president obama is wrapping up his town hall in new hampshire. a calm forum compared to some of the meetings that we have been showing you, but the president did comment on the outspoken critics. >> where we disagree, let's

disagree over things that are revealed. not these wild misrepresentation that bear no resemblance to anything that has actually been proposed. [applause] the way politics works sometimes is the people who want to keep things the way they are will try to scare the heck out of folks and create bogeymen out there that are not real. trace: mike emanuel is live in portsmouth, new hampshire. we have protesters on both sides but inside it seems pretty friendly. >> a very different scene inside. we are told that the 1800 people here were not prescreened, that most of them were able to sign up to get tickets. inside, a very mellow scene. in fact, he is trying to seek out people opposing his plan, and even when he went to the people, the questions were not very tough. should you be tougher on

congress? that was not a really tough question. he deflected that easily. much of what he was saying was what was not in health care reform and insuring people that like what they have, in their lives will not change very much. trying to make the case here in new hampshire, a place that he has been many times, that health care reform is needed now. an interesting tactic. the president and his spokesperson robert ganz basically blaming cable news. do not allow cable knows the opportunity to kill this this year. that would be a mistake for this country. it will be interesting to see if that resonates. basically, the president doing his part to find these conflicts and to not them down, but over all, pretty the novelette inside, perhaps out of respect for the office.

trace: so are you happy with your health care? if you are -- the question is should you be? the bottom line is your current health plan may not be as good as you think it is, and there is a good chance it will not be around when you need it. with us now is the director -- former director of communications to dennis hastert. also in the former communications director for trent lott. we also have a democratic consultant. we watched claire mccaskill, arlen specter, the president's town hall meetings. we have very different scenes. >> let me say first of all this whole process has been extremely insulting to the american people. first the democrats try to ram a health care bill through august. this is the buzz saw they have

ran into because more than 70% of the american people are satisfied with health care. now we are seeing those in the media say, wait, those in the media may not know their health care plan. those people may not be smart enough to know, therefore, why should they question a healthcare bill? this process has been put in play by democrats who are trying to put in that the genie in the bottle. when you or holding a town hall meeting, you are not going to get great feedback, and now you are getting terrible feedback because they are not doing a good job managing the process. in addition, nancy pelosi is calling these protesters un- american. i feel bad for the american people that they have to deal with this. trace: maybe we should just have a national referendum on health care. according to polls, that reference -- referendum would go down in flames.

>> what we are seeing right now is truly american, dissent and discussion. this is what other countries strive for. we are having a conversation about this. even though there are fringe elements on either side distracting from the debate, at the end of the day, we will talk about what we need as americans. we all agree what that is on some level. trace: it is a good debate, but is anyone listening? >> it is interesting when you hear the president blame the media for causing their health plan to go down in flames. it is because they were not able to get it through, and still have not been able to get it through, because people are angry. the more it becomes radioactive to the democrats -- they are very upset, and i would be surprised to see it in september. trace>> don't you think americas are concerned about the lack of

republicans voice in this issue? trace: we have to go. we apologize. we have a lot of breaking news. juliet: h1n1, separating fact from fiction. dr. manny alvarez is with us.

trace: in delicate and dangerous rescue effort on hudson river. divers trying to bring up the wreckage of a small airplane involved and that collision over the weekend. it collided with a sightseeing helicopter, killing all nine people on both aircraft. one of the two remaining bodies to be recovered is reportedly still inside the wreckage of the airplane. we are also hearing some of the first call's made to 911 after the crash.

trace: the crash is now calling attention the types of safety regulations involve for the airplane involved in the crash. some are calling for collision avoidance systems to be mandatory on all planes. why are they not ready? >> those systems cost thousands of dollars and pilots say that one size does not necessarily fit all. every pilot does not necessarily need one. we are 40 minutes north of the d.c. area, and at the time i was talking to an instructor. >> i have not seen a single

airplane or helicopter or anything. nothing since we have been here. you have proved >> and two points. in the and congested airspace, even close to a metropolitan area, there is not that much. secondly, you will not see them until they get fairly close just because of the dynamics of spotting a small target. >> he did have a transponder on his plane and it showed all the other ones that have transponders, but not everyone is required to have one. trace: what about calls to limit traffic over the hudson? what about that? >> tour operators do not want any changes. they have over 200 flights a day, and it is more than a $100 million industry for the city in annual revenue. but it is something they're

looking at. whether they should limit the number of flights, whether they should separate planes and helicopters. you remember a former new york yankees pitcher was flying with an instructor and they flew into a building. they out lot commercial flights over the east hudson river after that. -- over the east river after that. trace: where you were flying, how crowded was it? >> in the frederick area where we were, and where most people fly, and there was not much traffic. we did not see any traffic but since -- until we were taking off and landing. basically, they need to be careful and of both ways, as we do when they cross the street. trace: thank you. juliet: i would freak out if i was stuck on a rollercoaster.

>> one of the things that i have heard about this roller coaster is there was no restroom. they were up there five hours, some of these people. juliet: how did they come down? >> that is what we will be showing you. one of the dunham and on board the roller-coaster will be with us as well. they say they gave him food and water. why didn't they take them down? i am going to ask. juliet: i do, but i want to save it. >> you have heard there are town hall meetings going on again today. juliet: shocking. did you see president obama's? did you read this intro read before you came here? >> yes, i do.

my executive producer, she knows everything. she even highlighted some things to tell you about. it worked out nicely. it is wonderful to see you. you heard we swept the red sox over the weekend. trace: who is we? >> and the rebels are on the cover of "sports illustrated." trace: you think they have a chance? thank you. busting the midst of the h1n1 and finding the best way to protect ourselves. dr. manny alvarez with the news you need to know about. talk about misinformation. . if you're taking 8 extra-strength tylenol...

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juliet: welcome back. trace has been very concerned about swine flu, as have many of you, so we wanted to clear up some of the doubts he has been having. so he does not start crying, like he does after the show. trace: i am concerned about this because they say the second round is always worse. i have kids. >> this is what we have to talk about, and this is why you have to go to foxnewshealth.com. the school year is coming. a lot of things are coming back may affect this.

especially if you are unhealthy and have chronic conditions, but no, get the swine flu vaccine. if you are healthy, you have to get the vaccine also because it could be potentially deadly. juliet: that is the theory behind the chickenpox parties. >> do not. it is dangerous. you do not know the variability or the severity, so you could really have a mild case, but what happens if you do not? 30,000 people die every year. 200,000 people and of in hospitals. juliet: do not play doctor. here is another one. >> i like that one. i like to do the bump. trace: or the local pound,

right -- or the knuckle pound, right? >> if you have to, shake hands because it is socially acceptable, but wash your hands. we have a story of that shows you what kind of things people in their hands. you should look at that story also, and it will scare you. trace: knuckle bump. >> cut down the handshaking a little bit, especially in the flu season. we have everything covered. juliet: are you feeling better? trace: i do feel much safer every time. foxnews.com has all of your swine flu fact and fiction. that is it picture of the hudson. they are trying to pull that plane that crashed over the

weekend. they know where it is. they know there might be a body or two in side. they are trying to raise the wreckage from the floor of the hudson 60 feet down. more on that, as well as breaking news on town halls across the country. wow, is this... fiber one honey clusters? yes. it's delicious. delicious. i know. but it can't have... can't have about half a day's worth of fiber? i assure you it does. i was expecting... expecting sawdust and cardboard? i know. i can only taste... only taste the crunchy clusters, honey, and brown sugar. no madam, i don't have esp. ok. i'll take a box, but you probably already knew that. (announcer) fiber one. cardboard no. delicious yes.

juliet: thank you very much for watching. trace: "studio b" right now.

shepard: she left sparkles all over you. the makeup artist. were you aware of that? >> probably my eye shadow. shepard: all in my face. juliet: you need to stop making out with me during the breaks. shepard: brand new information on that deadly crash into the hudson river. divers are back in the water and expected to pull up the plane very soon, we're told. [captioning made possible by fox news channel] captioned by the national captioning institute --www.ncicap.org-- shepard: first, though, boxes full. brand-new case we have been falling -- the driveway bombings in arkansas. a high profile dr. targeted outside his own home. new, cops announcing a huge break in this months old case. box number two, not part of the right. two dozen people left hanging for hours on a roller coaster after it stopped