the pounds." brian: dana perino will be joining us on the radio. steve: fabulous. the after the show show starts in about 10 seconds. [captioning made possible by fox news channel] captioned by the national captioning institute --www.ncicap.org-- bill: brand new reports out of washington on the fate of government run health insurance. a big dustup amongst the democrats, moderates saying that they are opposed in the senate. liberals like howard been saying "i do not think that health reform can pass without the public option." what do you do? good morning, everyone. megyn: you heard it, no government run insurance, no bill. all this despite the fact that the president hinted at the fact that he did not have to have government run health insurance. there could be another

possibility. kathleen sebelius even said that it was not essential to reform. then the white house came out and said that she misspoke. bill: wondering if this is a deal breaker? we have been managing editor out of washington, our vice president of news, bill salmon. that door seemed to open up in colorado. this is president obama, suggesting that maybe in the end we do not need the government auction. >> this is a legitimate debate to have. all i am saying is that the public option, whether we have it or we do not have it, it is not the entirety of health care reform. this is just one sliver, one aspect of it. bill: key line in the middle there, pushing back card? >> it is crucial to remember the

chronology. last month he gave a radio address saying that any bill must include a public option. last week he gave a radio address and that same weekend kathleen sebelius said that public options are not the central element. you have two contradictory stances and the white house is trying to suss out the difference. bill: we have seen the way that it has been batted around in the last 24 hours. one month ago abc news did a poll, they wanted to know if you thought that the government option would give you better care, worse care, or no difference. 76% said that it would make no difference at all, but that it would be lower quality care. now, you wonder where those numbers are today.

>> that is true. on the one hand, people are saying that they do not want the public option. republicans are showing up at these town hall meetings and objecting. on the other hand, liberal democrats are saying that we need to put that option back in there. anthony wiener in new york said that they feel betrayed by the obama administration, thrown under the bus. that he is getting it from the left and the right. my suspicion is that the public option is really going to be taken up but ultimately placed back in because i think that republicans are going to vote against this plan whether it has the public option or not, and democrats will move to the nuclear option, where they only

need 50 votes. bill: wiener said that he would lose 100 democratic votes on the house side without the public option. next time we will give you more time, thanks. megyn: looking on the official website for 1 new york congressman, it clearly states "my number one priority is serving you." really? maybe not when it comes to health care reform. the democratic congressman is under fire for comments that he made during a meeting with a political action group this weekend. when asked if he would vote for the health care reform bill even if his constituents said they did not want it? >> [inaudible]

i will vote against their opinions if i actually think it will help them. megyn: i will vote against the opinion of my district if i think it will help them. he will be having a conference call in about 25 minutes, as this statement is picking up some heat among the press. we will bring you the highlights. bill: in colorado, the congress people they're getting an earful from constituents. >> [yelling] bill: that was the event in boulder, colorado. constituents have a different point of view.

>> i do not care what anyone says, this is a socialist. what you are trying to do is take away free choice. i have a private insurance company that i am happy with. this bill would force private insurance companies out of business. bill: in the next hour we will debate this idea with doctors to see patients every day. -- doctors of that see patients every day. much more, coming up on "america's newsroom." megyn: a 38-year-old mother in northern georgia is missing. out for a walk on a back road, she was talking on her cell phone with her boyfriend at the time. he says that he heard a struggle and that suddenly the phone went dead. police are looking into her former job as a probation

officer and if it might have played a role in her disappearance. we are going live to marion, live from georgia. where are they in the search? >> this is just a nightmare scenario, on the phone with her boyfriend. he said that the last thing that he heard her say was a "do not take me." they found her phone a few miles away, but they think she was -- but the phone was in the opposite direction from where she takes walks normally. right now investigators are going door-to-door, talking to people, hoping to get any information that they could. yesterday they searched a lake, they had divers. they have been searching by air. there had been no sign of her. i spoke to her family, they said they were hoping that the fact

that she was taken on a state road means that whoever took her kept on going. they feel that that is the most important thing right now, to find out where she is. megyn: we have the website and phone number on the screen where people can contact the authorities with tips. what is the family saying? >> they are just devastated, hoping that someone will recognize that picture. they think that her background as a probation officer and her experience with self-defense might have made her able to handle whatever situation she found herself in. >> her law enforcement training, her law enforcement education, her physical strength, all of those assets are going to bring her through this. >> again, as you mentioned, we have the number on the screen for anyone that might have any information. they want anyone, no matter

where they live, to keep their eyes out. keep your eyes peeled, look inside of cars wherever you go -- they are hoping to find her. megyn: it reminds me of what they advise anyone who is about to be abducted, do not let the person did you from spot one to spot number 2. do what ever you have to do not to be transported. i am sure that she tried. we are following the story. thank you. bill: time is of the essence. one week since she has been gone. in a moment we will get to another shocking story, while dogs are being blamed for a deadly attack on an elderly woman. megyn: stunning findings from a lab test on the money in your pocket. i could not believe this. besides the germs, besides a the

dirt, you will not believe how much cocaine is on your average dollar bill. bill: you have heard that line about pulling the plug on granny, right? coming up we are going to talk to a grandmother whose hand is firmly on the plug. she will tell us what she is most concerned about in a government run health care program. live, from austin, texas. next. ♪ gecko: uh, you wanted to see me sir? boss: come on in, i had some other things you can tell people out geico - great claims service and a 97% customer satisfaction rate. show people really trust us.

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megyn: new details on a developing story in afghanistan.

the taliban claiming culpability for a deadly attack on a nato convoy this morning. at least seven people, including two u.n. workers, killed with 50 wounded. the attack coming just days before the presidential election. this thursday, afghans are expected to head to the polls and vote for president and provincial leaders. the taliban has said that they will retaliate against any one that decides to vote. bill: you have likely by now heard the line about pulling the plug on grandma. what are ordinary americans saying about all of this? let's talk to a real grandmother this morning. wilma is a grandmother of five, a member of the 60 + association. good morning. i know that you have got blue cross blue shield right now,

what do you think of your coverage? >> it is good for me. i like my coverage. i like my doctor. i do not want anyone coming between me and my doctor. i have some perspective, working in the post office. we do not want government in our insurance. bill: what are you so afraid of when you talk about government? >> i can explain it to you like this -- it will be like stepping off the curb into wet cement. it will take longer, it will be more confusing, it will be harder, and anyone that has ever dealt with this knows of what i am talking about. bill: explain that to me. it is absurd. -- >> it is absurd. if you are making a claim, it will take twice as long.

you have to do it in triplicate triplicate. i probably will not go to the doctor, it will be that much trouble. bill: you base that off of your experience at the postst office? >> i have been in a v.a. hospital, i do not see a shining example of our government being efficient in any of the businesses that runs. i do not understand the rush. i do not understand why we cannot slow it down, discuss it. every day it is something different. i did not sleep last night, trying to figure out everything. i have been watching it. when we watch the town hall meeting and everything, it was amazing to me.

not allowed ones, but the ones that were informed and educated -- not be allowthe loud ones, be ones that were informed and educational. i did not understand a single senator. bill: but do you admit that some chase -- some changes are necessary? what would you like to see done? >> i would like to see, systematically, tort reform, all the things they are talking about. i think that the government's job should be to correct an reform, not to run health care. this is something that we cannot back up from. we cannot back up from this. it would be very difficult.

bill: have you stopped to consider what end of life counseling would mean to you? that maybe you could use a device like that at that time in your life? >> not really. i am fortunate, i have a wonderful family. all of the counseling that i need will be right in my family. i have people that love me. i do not need to know how much it will cost. that is not how my decision will be made. it will be about quality of life. bill: we want viewers to know that you lost a lot of retirement money because you lost money with general motors. and that now you have concerns about tomorrow. i think did you have voiced them well. -- i think that you have a voice to them well. >> i am a proud american. i am so proud of our citizens, i

have confidence in the americans that are speaking. they need to be listened to. maybe we have lost confidence in our government officials, but have confidence in these people that are studying this and that know what they're saying and can answer our questions. bill: you can go back to bed now, a job well done. >> [laughter] thank you. bye-bye. megyn: some lawmakers might be ready to pull the plug on government-run health insurance. but a big group of democrats said that if you do that than the entire reform effort is dead on arrival. one no lawmaker explains why a local san should be your doctor, just ahead.

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bill: there are reports this morning that the aarp has taken a hit for supporting the president's health care reform. they said that they lost about 60,000 members since the first of july, all citing the organization's stance on health care reform. the aarp says that about 1.5 million seniors have removed their memberships during the same time.

♪ megyn: believe it or not, there is a very good reason we are playing that music. it has to do with something you have on your body right now. next time that you pull out your wallet, chances are that the cold hard cash inside of your wallet will be laced with cocaine. apparently the illegal narcotics is found on paper currency worldwide, but most prevalent on american money. 90% of american currency is laced with that drug, a 20% drop from -- jump from two years ago. stuart, you are telling me that if i reach into my purse and fallout a bill, cards -- odds are overwhelmingly that it will

have cocaine on it? >> cocaine remnants, the most minute and trace elements of cocaine. the currency is not laced with cocaine, far from it. you are right, 90% of dollar bills have this trace element of cocaine in it. a higher concentration and is found in china or japan. second, the dirtiest currency is found in washington, d.c.. megyn: really? i would have thought wall street or something. >> after that you have baltimore, detroit. the cleanest city is salt lake city. what is lacing the currency with cocaine? we are dealing here with millionths of a gram. that is what is found in 90% of our currency. think of it, you would use a

robot dollar bill to ingest cocaine, and it is indeed laced in -- laced with cocaine. but that in your wallet with all the other bank notes. megyn: that is how they are getting contaminated? people are using the currency to snort cocaine? not like the cocaine was next to the money -- people are using it as a tool for ingestion? >> correct. a rolled up 20 other bill to start cocaine, -- $20 bill to snort cocaine. megyn: is the $20 bill most likely? is there any sort of currency that is least likely? i will have a baby, what bill should i be looking for? >> i believe that it is the hundred dollar bill, contrary to apology. think about this, it is trace elements. not like every single bill in

circulation has been used to in just cocaine, far from it. it goes to a store, all of the other bills in the cash register are contaminated. every other bill has a trace element of cocaine on it. that does not mean that every bill in circulation has been directly used for cocaine. far from it. do not worry about your child, if your kid gets hold of a dollar bill or something there is no danger there. megyn: we have been too hard on money laundering, there is a real need for it. [laughter] bill: giving a whole new meaning to the phrase greenback. i mean now it is a white back. [laughter] megyn: you are so health- conscious, you are one of those antibiotic people.

bill: i encourage it. megyn: i know, but you are over the top a little bit. listen, you do not think about the money. you might be reluctant to shake someone's hand, but not the money, right? bill: i will be using my credit card from now on. overseas, a deadly accident over the weekend at a power plant killed 12. the whole thing is on videotape. those pictures came out this morning for the first time. we are getting new details. megyn: the atlantic hurricane of the season, the first big one, headed towards the coast. janice dean, on bill. bill: keep an eye on bill. democratic congressman, live today on why we need health care reform. that interview is only moments away.

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megyn: the feds are calling it the single largest identity theft case ever prosecuted. three men indicted on two counts to hack into computers

and engage in wire fraud. they stole more than 130 million credit and debit cards from several large corporations, using sophisticated techniques to break into the corporation's secure web site. the man would sell the data, who would then make fraudulent purchases and other schemes. gonzales is already in federal custody, once a informant for the secret service. these men face up to 20 years in prison. this is why you actually need to look at your bank statement every month. my husband is in internet security. he told me that the smartest thieves do not withdraw $1,000 from your bank account. $1 from me, $1 from you, you do not even notice it.

you think it is a fee. bill: this story out of georgia, shocking, a pack of wild dogs killed an elderly couple. the police say that the woman went missing for a while after taking a walk, the husband went out to find her, and they were both killed by the same pack of animals. >> we are worried about these dogs, but i do not know what to do about them. i want them gone. bill: police identified the victims as a 77-year-old college professor and his wife, sherry. the owner of the dogs is said to be sick and in the hospital. megyn: the white house, opening the door this weekend to the possibility of a health care reform bill that does not

include a government auction. kathleen sebelius saying that it is not essential, and then the white house tried to dial that back. democrats say that if the government run option is not included, the bill will be dead on arrival. dennis kucinich is a big supporter of the government run plant. good morning. >> how are you? megyn: fine, thanks. kathleen sebelius open the door, then we heard that liberal members of congress put a lot of pressure down saying what. your position on it, sir? >> first of all, the public option offered in the bill was not much to begin with, it the idea was to encourage

competition. without that, costs will go up. megyn: in order to in -- in order to get the conservative blue dogs to sign on, it was watered down to the point where the public option would compete when it came to rates? >> there would be no competition, meaning that the cost would keep going up. just like the deal the administration made with drug companies. bailout medicare to continue to siphon money, without drug importing from other countries. what is all of this about anyways except for the government subsidizing private enterprise? i do not think they should be picking winners and losers in a private sector. that is what this does. megyn: how you get this through?

kent conrad said that there will not be a public option in the senate bill, nancy pelosi said that they will not have a bill that does not have one. how do you square this up? >> first of all, government run is not government run. when you talk about government run, think about veterans. medicare runs the bills. the insurance companies take one out of every $3, right off of the top taking a back to the cover. go to the american people instead of trying to force it down the throats of the american people, this bill that no one understands and has not been well defined. we should listen to the american people and their concerns about health care. when we do that, people will create the momentum that is

needed. megyn: what you make of the polls that show that the majority of americans that do not want the government messing with their health-care insurance right now? 80% of americans are happy with their health care plan as they have it. >> it has more to do with the underlying principles rather than the facts. people are suddenly in love with their co pay? suddenly the next thing you have is a government run government? my gosh, we have got to get some perspective. people do not have health care because they cannot afford the premiums. deductibles are driving them into the poorhouse. start over. if there as a beat -- if there was ever an issue that they needed to hit the reset button

on, this is it. megyn: it is a small set of americans that are under- insured, research showing that the vast majority has insurance. not only do they have it, they're happy with it. the argument is why should we be messing with the entire system? why not siphon it down in a way that can help the number of the administration, people saying that it is really only like 15 million people if you exclude the people that do not want insurance and the illegals, and so on, why not siphon it down to cover the people most in need? >> are we or are we not one nation? the insurance companies take one out of every $3, everyone could already be covered by the amount of money in the system. the fact is that all of these polls that have been taken are

based on the dynamic of the issue as it has been mishandled. when 47 million americans address the administration without any care, that is a drain on the economy. when you can say that you are paying for someone else's health care in an emergency room, think about what happens when you start to emphasize primary care. we want a system that is sustainable, like medicare. that is the way to really control costs in the industry. finally giving them an advantage that other countries have by driving down health-care costs. megyn: do you plan on voting for a health-care bill in the house that does not have a government run option? >> that bill cannot be supported as it presently exists, i do not plan on voting for it unless

something dramatically changes. megyn: thank you. bill: one of the 100 that would not support the bill without it. megyn: he did not want to give it up. bill: 19 minutes before the hour, we have some more numbers on the government run insurance plan. cbo shows that the government- run plan would not be a major player, costing 10% less than private plans, attracting only a few million participants. but an outside private health insurance firm estimated that government premiums would be about 20% cheaper. opponents of the system say that you do not need research to know it. megyn: kathleen sebelius,

putting gas on the fire storm of the health insurance debate this weekend. speaking live at the top of the hour, we aren't listening. bill: it is called the armadillo. it is the newest police tool to stop crime in one neighborhood. take a good look at this truck. why does no one mess when this is parked outside of your house? when i was seventeen i was not good to my skin. long summer days and not enough sleep. what i wouldn't do for a do-over. (announcer) new neutrogena total skin renewal. gentle exfoliating puffs and micro-vibrations speed surface cell turnover. it's clinically tested to help undo the look of a year's worth of skin aging in just one week. that summer of sun? i just made it disappear. (announcer) new total skin renewal.

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[laughter] bill>> santa sent me here to

wish you a merry christmas. >> have a seat, you must be exhausted, and all of the way from texas. [laughter] bill: a classic scene from "friends." the police in peoria, ill., have their own armadillo. they claim that it is working, chasing the bad guys out. i want the viewers to see this. it is a brinks armored truck. you park it wants to get a phone call? >> usually is some kind of a nuisance property, one of the houses that generates a lot of chaos, like drug dealing or drug use going on.

bolten will neighbors complaining over a period of time. bill: you got the idea from a woman who said that she needed relief from her neighbors and yelling. what did you do? >> that was one of the instances that we had. that had been a long-term problem, it was never used for just a one time complaint. this individual had been having trouble with her property. others had had trouble as well. we get a complaint like that, just constant chaos, this order, disruption and typical methods had not been affected in -- chaos, disorder and disruption. typical methods had not been effective. those properties become quite an instantly now.

bill: they do? >> we have had people move out because they are embarrassed, problem landlords that have evicted the tenants, there have been a multitude of ways that they have provided relief. bill: you also say that the ugliness of the truck makes it unique? [laughter] >> it is true. bill: three years ago you parked outside of one house, it became smashed. now you have protective screens, locks, is anyone messing with the armadillo? >> it has not been touched in two years. we are pleased with that.

i think that the cameras are affecting it to some degree. i think that the people outside do not really know if they can approach the truck. bill: you say that you have had trouble with crime, do you think that it is working? i imagine that you would still be doing it around town, what are the neighbors saying? >> and works on specific problems, not intended to change the crime pattern citywide. it provides relief for the folks who have had this terrible house on their block and they do not know what to do. they are just not able to find peace and quiet. it shuts the drug-dealing down and in some cases permanently. bill: chief, points for creativity.

thank you, chief. good luck. >> thank you. megyn: in england that they did that story about the guy that would not stop whistling the addams family theme song, over and over. reminds me of that. the white house and its efforts to track fishy information coming out of the health-care debate, are they no longer taking tips about people spreading a smear? not exactly. bill: a new campaign that has gone viral, take back the beat in a moment. what are you doing for lunch?

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bill: we have new videotape from his cell phone that captured a huge explosion in russia. dozens of workers feared dead. investigators suspected a transformer during repairs that exploded. it was the largest hydroelectric power plant in siberia. 60 people caught in a flooded turbine hall, wednesday was declared a national day of mourning in russia. megyn: hurricane bill is building steam over the atlantic as it occurs toward bermuda. it is expected to become a major hurricane and soon. will it actually hit the eastern coast of the united states? janice dean is in the studio

with the forecast. bill is getting scary. janice: i am concerned about this. where are we going here? bill: i do not know, but i know it is a four-letter word. [laughter] janice: you will be here all week. [laughter] category two, 100 mile per hour sustained winds. this storm is strengthening. the inner eye wall is starting to form, a good indication that we could see a category three very soon. we have a brand new advisory coming at 11:00 a.m.. yesterday we talked about the track moving more to the west each time. the computer models are inching westward. the canary islands, i think you need to be concerned right now.

it looks like the storm is going to make that northward curve at some point very quickly, possibly barreling continu conts we westward. megyn: planning a vacation next week? stay tuned. there she is. if hurricane season heats up, you can send us your pictures of the action. e-mail your photos and videos to ureport@foxnews.com. stay safe. bill: yesterday, the white house released a statement on health care reform. kathleen sebelius is speaking again. megyn: plenty of bombshell charges about the death of anna nicole smith.

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[captioning made possible by fox news channel] captioned by the national captioning institute --www.ncicap.org-- megyn: fox news alert, pulling the plug on the fishy e-mails coming from the white house. officially off of the grid, we now await an explanation from the administration. our first daily briefing since the fireworks last week, when major garrett clashed with robert gibbs over this issue after questions were raised about why americans were being spammed by the white house on health care. that is where we began. -- begin. bill: that white house web site,

designed to collect e-mail addresses, the that violate a law? megyn: how does the white house explained the action? the man that started it all, major garrett. what a mess you have made. there you went, doing your job, wanting to know why the white house was spamming users, then came the about face. without any explanation, this fishy e-mail suddenly is gone from the white house web site. what are they saying about it? >> the white house put up a post in west night talking about the problems and that the reason that they are consolidating the effort on misinformation in the health-care debate was distorted by rumors and conspiracy theories, fear mongering, according to the white house.

if you still have these issues, you can raise them at one of their other website. it is fair to say that the process is still going on, just under a different name. the reality check website is very much in operation. it sounds like they are still waiting for "misinformation" and "mets." and they say that there rigorous privacy policy, as they have conceded, it has made it possible for a third-party groups to dump lists from the white house web server, legitimizing a range of questions on this issue. the white house says that if you do not want to receive anything from the white house, he will not get it, but the white house would not said they were responsible for the spam, but

that the third parties were responsible. more broadly, they were responsible for what happens on the larger level. megyn: going back to that first piece of news in this, first we had the white house e-mail asking for a suspicious e-mails. then we had all of the spam, which they said was attributable to a third party user is getting on the web site. what about these fishy e-mails? have they officially denied that any of these -- like if bill hemmer sends me that death panels are bad and the white house will have them, i say that that is fishy and i send it to the white house. then bill hemmer get an e-mail

from the white house. has the white house clarified if they are sending e-mails to people like him? >> the white house has tried to clarify that, saying that the only way that bill hemmer could receive an e-mail address, it would have to be of some one put it in on his behalf, they always said that they were never using anything reported to move the data over to move it back out. everything that has come in, i have been told, must be preserved as a matter of natural archiving. that will also be true of reality check. they will not be involved in this process. the chief information officer at the white house will be in charge of guarding, monitoring, and being the custodian of these

e-mails. megyn: ultimately, they will become public del . >> 12 years later. megyn: exactly. thank you, sir. bill: you have been warned. look out for bill hemmer. >> i always do. [laughter] objects are closer than they appear. [laughter] bill: one prominent democrat defending his decision not to hold a town hall meeting, dick durbin said that he planned on holding no event with constituents because they had turned into shouting matches and he did not think it was a productive use of time. two-thirds of the members of congress on the house side or

the senate side, holding no meetings. megyn: supporters and critics add one town hall, shooting the breeze on health care reform, face-to-face with constituents. >> there are going to be heavy and stiff penalties for not taking these plans. >> you do not need to do stuff like that. >> that is just wrong. if you are offered insurance that you did not want and you want to keep that extra money, you are penalized. megyn: that was a congressman having a heart to heart with one

of his constituents. supporters of the government run insurance program. charles grassley, it is my bad that president obama will be taking him -- taking aim at him again as the source of some smears. he will respond live. bill: facebook facing a lawsuit that could change social networking in a big way. five members of the website say that facebook is breaking privacy laws and misleading personal users. >> as you said, here is what we know. facebook users in orange county have filed a lawsuit against facebook.

what do we know about the plaintiffs? it includes a model, an actress, a photographer, and college students. basically they accused facebook of failing to compensate users for releasing personal information in sharing it with third parties, in this case an advertiser. we are probably talking about things like e-mail addresses, home addresses, possibly shopping habits. gounod's? anything that could help them direct advertising. bill: facebook is huge. what have they said about this case? >> and not a lot so far. except that the company said that they will defend itself. we have a quote from a company spokesperson that we can put up for you. they said that the facebook plan is to fight it. as we mentioned, 250 million

users, they have been in hot water before. earlier this year there was an outrage when facebook changed its terms of use. basically saying that they owned at the information that was posted. users became outraged, forcing the website to change those rules, reorganizing them a little bit. last month canada started having big problems with facebook. the privacy commissioner suggested that facebook did not have the best concerns of users in mind and that it was very hard for people to deactivate their account, raising the question -- who owns the content? you or facebook? more to come on this one. bill: thank you. megyn: they tell all book about the and and nicole smith saga, rita caused the is being sued

by anna nicole smith's longtime companion, howard k. stern. a major ruling has just come down in this case. what did you write about howard k. stern that could cost her $60 million? that is in "kelly's court." bill: press 1 to leave a message, press 5 to send a page, press any key to send hundreds of millions of dollars to the phone company. [laughter] checking your phone bill can cost you big time. megyn: death panels and granma, all from charles grassley on the reference to the overhaul proposal. that made him the focus of many on the left. including the president. the senator is our guest, next. bicycle, i've missed you.

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bill: kathleen sebelius, now addressing the u.s. administration on aging. we are looking at the meeting right now. the secretary is said to talk about efforts to prevent health care fraud. since 1997, nearly $106 million in medicare and medicaid savings were attributed. we will keep an eye based on what the secretary said over the weekend about the health care option, maybe not a sure bet for health care reform. the white house working back from that over the past 24 hours or so. megyn: president obama is accusing republican lawmakers of hyperbole in this debate.

the president was referencing a recent statement made by chuck grassley. >> i have no problem with things like living wills, but they should be within the family. we should not have a government program that determines if i pull the plug on grandma. megyn: charles grassley is joining us now on the phone. can you hear me? we are trying to get his connection. the alliance dropped. here is our problem -- congress is in recess, we want to get a lot of these lawmakers of and we have to get them thon the phone, as they are out there talking to their constituents, as they should be. sometimes it works, other times

not so much. do we have a connection? two seconds, they tell me. bill: 1001. 1002. hello? megyn: what do you think he is going to say? bill: i will tell you. the same thing we have been talking about for the last few days, whether this off public option is on or off the table. is it a deal breaker? megyn: it is not even so much about that, the president is pointing at charles grassley has throwing false fire on the debate. senator grassley has some thoughts on that accusation. do we have his connection yet? bill: who needs the u.s. senate when they have us? megyn: i will handle senator grassley. bill: we have been trying to get him on the phone for a couple of

days now. we will make it happen. megyn: he is big. this is the big one. there is a gang of six, these are the six senators that everyone is looking at to come up with a bill that will pass. so, you have got these six senators and he is one of them, still at the bargaining table. now there is a fight between charles grassley and obama. bill: in the meantime, are we headed for a co-op? that is washington's new answer for health care reform. what do they mean for you? what did they do? in 12 minutes we will debate that. megyn: they are very good. you know the drill, try to leave a voicemail and you get a recording first? could that woman speak any slower? bill: just did it over with.

megyn: i already know what to do. guess how much it costs you just to get their? how can you fight back? f

bill: hello. megyn: we are back on the air. [laughter] bill: yes, we are. checking your voice mail, you do it all the time, right? you might start to think twice. >> at the tone, record your message. >> nearly everyone knows that voice. >> finished recording, hang-up or press 1 for more options. bill: when i checked myself on

to get a message, the chances are good you have got it memorized and chances are good you had no idea how much you are paying for it. to get to that beep it takes about 15 seconds, and that precious 15 seconds means enormous profits for major cell phone carriers. >> it has driven me crazy for years. bill: he said that verizon has 86 million customers. if they check their voice mail twice per day, it is a lot of money. >> $763 million. bill: he argues that they are so common, we know the drill. >> no one is left alive that does not know. there is, they should not be allowed to use the telephone. bill: he started an on-line campaign. 30,000 loggers had written their own messages to their carriers.

t-mobile told us that customers that was to bypass the voice mail instructions can do so by pressing the pound button. each carrier is different, making it tricky. no one is suggesting that the recorded message will be erased, but you might be able to declare victory. >> even my cat knows what to do at the beep. bill: a very smart cat. [laughter] what to do? there is a web site for taking back the beat. instructions are there. at&t and verizon have not responded to our requests for comment, but you can go to foxnews.com -- megyn: right under the very weird looking pictures of me and

bill. bill: these folks are taking charge. they were thinking about this yesterday. how many cell phones do we give our employees? megyn: quite a few. bill: if you can teach the consumer to avoid the deep, how much did you save? megyn: we have got the animation, and guess what else? chuck grassley, with us by phone. let's give it another try. can you hear me? >> i can. i heard the beginning before, but then we got cut off. megyn: it works so much better when the guests can hear the anchor. the problem is that the president appears to be taking aim at you, saying did you have not have people pushing this false rumor mill, that we are going to pull the plug on grandma.

the president may not have been wrong, you said those exact words about how americans should not have to worry about it. were you adding unnecessary fuel to the fire? >> i was answering a question for a very concerned constituent had one of my town hall meetings. i left my meeting with no notes, i had a very strong view. i was not going to do anything with the health care bill that puts any government policy or safety agency in the place of making the determination of whether we would value life at the end of life anymore than at the beginning. i think there is a bigger goal that they have here, a diversion away from what is really wrong with the bill. i was responding to something in the bill, not something from the

senate finance committee. megyn: be know that you do not have a similar proposal, but it is something that will be opposed on the house side. if those democrats were still sitting here, they would say that you are scaring people because it is not a mandatory doctor tells you pull the plug consultation, they are just trying to help elderly people make plans for the end of their life. >> i would say that they are diverting from the real issue of the pelosi bill, altering the health care. they are not doing anything to reduce inflation. i think that this is what a president or speaker of the

house have to do when they have a reasonably bad health care bill that is not being received by the people. what they are trying to do is divert attention. they have done a good job. they are intellectually dishonest when they say it. all of their proposals dealing with end of life are connecting bills with ways of saving money. taking over national health care. you can see what is going on in other countries. i do not want that for the united states, treating life at age 85 different from age 35. megyn: critics have pointed to your vote in 2003 that included a similar position. if the patient wants it, the patient will pay for it. you have supported that.

now you are suggesting that a similar plan is really unfair. how do you respond to the charge? >> if you read the committee report from 2003, you will find out that we were talking. it has nothing to do with saving money. when you get into what the goals are in the house bill. megyn: your concern is that this raises questions? >> probably the government takeover of health care, that is the end product of a house bill that has a government-run plan.

120 million people, are they going to crowd out the plan? when they do, pretty soon everyone else leaves. then the government is running health care and the american people do not want that. megyn: i have got to ask you about kent conrad, do you agree with him? he stated that there was no way that a public or government bond auction was ever going to pass? >> we are trying to call ourselves a group of six, not a game. -- gang. one of our goals is to not have a government run health care plan. kent conrad is right. megyn: thank you for being with

us. next, "kelly's court" takes a look at the legal battle connected to the death of unocal's smith. this one is so strange, i can barely get my arms around it. bill: is this the answer to health care reform? two doctors debate that.

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bill: 10:30 in new york, in washington as well. kathleen sebelius is still addressing the forum in washington, we will have her remarks for you coming up shortly. we are trying to see if the town of the speech matches the statements from sunday. -- tone of the speech matches the statements from sunday. some long -- some on the left are considering a co-op, how would they work instead of national health care?

our guest comes to us from chicago, our other contributor is our fox news dr. mark siegel. if we don't need the, i will cry uncle and pull you out. on the screen, this is how we define a co-op. small businesses, cities, communities, banding together to cover iinsurance in a not-for- profit alliance. here is the big question -- could take a lot compete -- could a co-op compete with a large insurance company? >> it can ended well. let me explain this. the entire model is based on group health in seattle, known to some of its patients as a group death. 500,000 people are using it. physicians are employed by it.

in seattle there are great physicians available for this. we have shortages of doctors, not sure if we could even staff this if the government was running. pre-existing conditions are excluded, the government will have to put in billions of dollars to get this thing to float nationally. pre-existing conditions are excluded. bear with me. if they place billions and billions into this, it will be cheaper and they will have low quality of care. it will drive the private payers out of the market. it is going to expend, but it will be the prevailing public option. bill: what about the government running a co-op? >> i do not think that is a

danger. this is an integrated health- care delivery system, which is a good thing, but i think that they will be too small to keep up with the pernicious practices of the private insurance industry. bill: too small? to be effective you have to have half of a million people, that is a large number. there is one in wisconsin, it took 30 years to be established and up and running in an effective manner. >> that is exactly the problem. the majority of americans do not live in population centers that are large enough. this is the same problem we had with bill clinton's bill. they do not have a population center is large enough to have competition.

if the seed money is going to be problematic in terms of getting things going, this is just a political compromise. bill: she is taking us back to your point, mark, that if it is going to be effective it will need billions from the government. >> she and i agree, it will be a different animal from what you see in minnesota or seattle. by the way, another thing that we might agree on, insurance is the problem. i think that we have established that the government has not done a good job with medicare and medicaid. providers are not high -- happy with either. the entire debate is about insurance. usa today has an article that there will be a shortage of primary-care doctors by 2020. they have got to take care of 78 million more baby boomers.

bill: would you support that? >> i think it is the wrong way to go, i am in support of a single payer system for all. medicare is a very popular program. >> it is going belly up. >> that is because of lack of adequate funding and the practices that have been instituted, like medicare part d, a gift to the pharmaceuticals industry. seniors are given access to care that they did that have before 1969. >> you cannot have it both ways. if you cut money from medicare, it will be a different animal where seniors are denied the services they're used to getting. you cannot have it both ways.

bill: i have to leave it there. >> we are carrying on the basis of the ability to care for them. bill: we will have to leave it there. this is valuable for the viewers. thank you both. tanks, humvees, armored carriers, u.s. forces in afghanistan. marines are turning to a new mode of transportation. one that runs on water and vegetables. try that. megyn: she claims to have the inside scoop on the and and nicole smith's side up. but she might need to check her sources. sex, lies, and allegations that could cost her $60 million. that is in "kelly's court."

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megyn: "kelly's court" is back in session. on the dock it? suing for big money in the anna nicole smith signed up. howard k. stern was just given the ok by a federal court to sue read a cause the -- sue rita cosby over a book for $63 million. she claims that howard k. stern made a steamy sex video with larry birkhead. rita says that they had a bit of that affair. -- a bit of an affair. she always rights -- she also alex -- she also writes that

stern camped out and nicole smith to dozens of men. -- pimped out and and nicole smith to dozens of men. -- and none nicole smith -- anna nicole smith to dozens of men. let's go to the panel. >> good morning. megyn: could you make this any more salacious? my eyes are rolling. in the meantime, howard k. stern, who is no darling to the american populace -- everybody knows what he did you and nicole smith and how he supplied her with -- basically he was an able lawyer. you have got a major victory from this court, might he prevail? of >> tea should of what the

judge said is accurate. substantial evidence of knowledge is what is required, a willful disregard of the truth. he is saying that these were made up lies. book, she made money. i did not read the book, but i am going by the judge's order, saying that this is all false. i am no fan, but he should -- but should he prevail in a lawsuit? now. megyn: the judge should disclose, me, that is, i know rita -- [laughter] in real court i would have to recuse myself. but she said look, i have the sources to back up all of these

claims. now they had sex, then he was her camp, etc.. >> one of the things, the notion that this is preposterous that and and nicole smith will watch a pornography tape? inherently improbable? that line will not work. a jury could believe that it is true, that she would watch a tape like that. whether it exists, we do not know. that could be problematic unless she could get both women to come into court. her showing that she had the belief and information at the time to show believe that this was true. megyn: the judge said that these

allegations are inherently improbable, this even know her? improbable that these folks would be involved in other nefarious chapter of their lives? >> that is what caused the is counting on to sell her book. you think that this could have happened, which sells the book. i do not know if it is true, and it appears that based on what i am reading that she does not have the support for it, the second issue involves damages. howard k. stern, is he going to lose clients? he already lost his only client. megyn: can he be prosecuted for supplying the drugs? >> he has already been indicted. it shows that the grand jury

thought that there was compelling evidence. >> what does that have to do with that? it is completely separate. megyn: you have got the plaintiff sitting there, fresh out of prison, testifying. i had to go. even if you are right about that, in the judge's opinion he says that read as sources -- apparently there is a question about that. rita allegedly offered to pay these women to support the affidavit, but that will apparently cause problems. >> one, for sure it is a problem as a journalist. but the issue is, if she paid

these people, do they really exist? does there have to be a tape? if they thought that there was, there is no lawsuit. >> he is not going to prevail on this. they will not be able to show malice. new are talking about a man dressed in drag on the show, reporting that his sexuality is ambiguous? the jury is going to throw out the rest. enjoy your silver bracelet, howard k. stern. >> what happened to a resumption of innocence? [laughter] megyn: it is nearly impossible for a public figure to said that they have -- to prove that they had been defamed. nearly impossible for someone

like howard k. stern. one very good fact for cosby, it is hard to get sympathy for a jury covering a man in prison. .

bill: rough rain in afghanistan forces troops to go low-tech. claudia is live at the marine corps master warfare training center. who knew that just outside of bridgeport, calif.? >> good morning. this is where marines come to take the load off and keep it off. pack animals that in some war zones do some of the heavy lifting.

morning wake-up call at the warfare training center in sierra nevada. crucial members of this marine unit, complete with furry ears and a strong back, perfect for hauling a heavy load long distance through heavy terrain. precisely the forces from the mountains of afghanistan. >> i do not want to haul all of this on my back, for one. >> marines headed to the war zone learned how to get hundreds of gear back and on to donkeys and mules. these animals are not just strong, they are short-footed. when they cannot see their feet or choose to be stubborn, they will not budge, so that is when they become donkey whispers.

>> it is like a five or six- year-old child you're trying to teach something. you have to give them ideas. >> it is rather hostile territory. it took us what or a tug on the chain to get them going. this is not the only pack animal the marines have. they will be prepared to bring the fight straight to the animals. bill: bravo, claudia. she is live out there in california. we are watching the monitor. giving her a hard time. megyn: we will be back tomorrow.

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