us a second keypad installed free. and, you could save up to 20% on your homeowner's insurance. call now-- and get the system installed for just $99. broadview security for your home or business - the next generation of brink's home security. call now. [captioning made possible by fox news channel] captioned by the national captioning institute --www.ncicap.org-- jon: hope your having a great thursday. happening now, a brand new day on capitol hill as lawmakers get back to work on various plans to radically change how health care is delivered and paid for in the u.s. after the president's address last night. the president wants to reach out to both sides of the aisle, looking out for support from the left and right while trying to reassure americans in the middle that his plan is necessary and will add to the soaring deficit. -- will not add to the deficit.

his plan would and lifetime caps on coverage, and capping out of pocket expenses, creating pools for high-risk individuals, and starting in 2013, the pools would be replaced by a federally-controlled insurance exchange. major garrett is live at the white house with more. major? >> good morning. the president will talk to his cabinet here at the white house little later on today, instructing them basically to do what they can to assist the effort to move health care reform legislation through congress. the secretaries have already been doing some road work, and they probably will do some more in the fall. as the advisers hope -- last night's speech should have calmed down the country in the fears about what the president's support goes to and give them

more confidence that the ground has shifted in their favor, moving them more expeditiously towards bills on the floor. a lot of work still needs to be done. jon: it seems like the delivery is starting all over again. we just saw the president's standing with nurses today. he has done that before, right? >> the nfl season kicks off tonight. and this morning's event is an instant replay. in the rose garden on july 4, obama stood with almost the exact same tawdry of nurses, who came to say they supported health care reform. they are saying the same thing today. the only difference is that the president now has something he constitutes an calls his own plan -- and calls his own plan, as opposed to the congressional

items. same players, different day. jon: and i guess there are new statistics on the range for covered americans? >> that is right. the census bureau reports based on statistics that the number of americans with insurance coverage has risen or rose near 2007 to the year 2008 by a factor of 2 million. the number of those without insurance rose to 46.3 million, a 600,000 jobs -- jump. last night, obama's said 30 million american citizens lack coverage. but the rest of the figure is illegal aliens and immigrants. obama wanted to reinforce that his plan would not cover illegal immigrants or resident aliens. you all may remember joe

wilson's shot from the floor, "you live -- lie." he has apologized. jane: remembering ted kennedy. president obama talked about the center last night, citing a letter he wrote last may saying his cancer was terminal. he will miss his booming voice and descartes -- big heart. ted kennedy died at the age of 77. jon: the number of people filing for unemployment benefits actually dropped last week. we are reporting from the fox business network. >> the trend is getting better in part due to gains. also in reaction to the presidential speech last night,

which is relevant, because of the overall market is only marginally higher, but i was talking to one strategist, and investors are reading in between the lines of what the president had to say last night, and there take away is that he essentially took the public option off the table, not explicitly, but implicitly. doing that puts him in a largely better position for these health care companies. many of the stocks are higher today because the public option was something seemed to have cut into their profits certainly much more than something like coops, for example. so you have that. there still are people filing for initial jobless claims, over 500,000, but it is lowest since july, and the trend is going in the right direction, like a lot of the data we have had lately. not great, but less bad, getting a little bit better.

jane: you remember the group called acorn, whose members were accused of voter registration fraud. today, a new controversy. an undercover video. workers to use see here are caught on camera coaching a woman who is posing as a prostitute how to skirt tax laws. >> acorn workers caught on camera telling a suppose it prostitute to hide her education -- occupation on taxes. and yes, please join acorn for 120 bucks. those were some of the claims from an investigative filmmaker went undercover to expose them. the filmmaker, james o'keefe, a conservative activist, pretended he was a law student and went to an acorn office in baltimore with his 20 year-old

female associate, pretended she was a prostitute. they claim they wanted to get an acorn loan to buy a house for their business because banks turned them down. here is some of what she said. >> let me make sure there's a code for this. i have to have a name and a code number. but i'm going to look in there. >> ok. i know you have the right tax code, so that is wonderful. glaxo o'keefe said that there are 13 underage girls being

imported from el salvador to "turn tricks." and they are told that while prostitution is legal in maryland, they should make sure that the girls attend school. he is stunned at the willingness of the girls -- of a corn to help. >> how can we safeguard you? normal people would say, get out of my office, where i'm calling the cops -- or i am calling the cops. >> got levenson says that the portrayal is false and defamatory. they tried to pull this and other offices and failed. they want to see the full video at acorn before commenting further. the protesters say they did not join a corn or paid a fee.

when advised to be quiet about the business, she told them loose lips sink ships. jon: their office is in baltimore. shannon is there right now. what is happening, shannon? >> here is what they say the video does. they say they offer tax services, things like company filed a free return or file for food stamps or other social programs, also offering things about the housing market. that advice when a lot further with a group that eric just showed you. we had some questions. we took the video to the front door and knocked and got someone to come to the door. we said we wanted to ask him

about the interchange. here is what happens. hello. how are you? i am very good. we wanted to see if we could get a response. >> if you have any questions, you can contact our national communications person. >> ok, thank you. >> he cannot just walk into this office. it is locked. they were kind enough to come to the door finally, and we have gotten a response from their national spokesperson. they are not too happy about what has transpired on the videos. jane: taking a look today at a string of assaults in the city of denver. police have released surveillance video of one of the attacks. they already have some suspects but they want you to take a look at this tape. they still need your help.

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>> i am not the first president to take up this cause, but i am determined to be the last. it has now been nearly a century since the or roosevelt first goal broke reform. ever since, presidents have attempted to meet this challenge in some way. jon: obama last night forceful in making his case for health reform, saying that he is determined to get the job done. that was not enough to convince congress that he is the leader and they should fall in mind. let's bring in bob beckel, a professor at george washington

university. kevin massey is also with us, former press secretary to mitt romney's campaign for president. this was a speech that determines to get congress in line and say, look, i am the president. i'm one to lead on this issue. did he do this? >> this is the most forceful i have seen him, and he got done what he needed to get done. he called it his health-care plan, making clear the specifics, addressing the audience as he needed to address them. the people in medicare were seen what not to worry about, and with south carolina calling him a liar -- if anybody wonders where town hall meetings get their mojo from, it was the republican side that you saw last night.

jon: bob said he called his plan, but i wonder about that. up until now, he has not told congress what he wants to see. >> yes, and that is where he has gone wrong. you have a congress with a sense of activism of its own where they want to get into details and right specifics, and oftentimes, those specifics have been outside the mainstream, and that is where the president has gone wrong. but he was right in one respect. he tried to take charge. we heard the president is looking to reset the health care debate. now we are at the beginning of september, a new phase in the congressional debate. he is looking to take charge and pick one or two or three things he wants to fight for. green knew, but he is at least try to control the debate -- the

specifics last night were not very new, but he is at least trying to control the debate. >> two weeks ago on this show, i said that obama would introduce the idea of tort reform. he did do that and opened it up, and that was an important concession on one hand to the republicans, but on the other hand, saying that he is taking charge of the thing, going places that republicans would not go. jon: bob, are democrats, who typically are well-funded by trial lawyers, going to go ahead with tort reform? >> i think so. they have got to get a bill. that is clear. he saw the outlines. there will be a public option with a trigger after five years. they will find out a way to pay for it, mostly taxing insurance policies, which is another shot

obama took at the unions. and the rest of things, everybody seems to agree with. i think you will get it. the democrats now realize that they cannot let this president down. there will be a new massachusetts senator in the next five weeks, so we will be back to 60 in the senate. if it means go without republicans, so be it. jon: if the goal is to get as many people covered as possible, why penalize those people who already have these so-called cadillac insurance policies by taxing them? >> right, and that is what bob and his democrat plans are good at, finding something to tax. the biggest problem with taxing the benefits is what does it do to competition, what does it do to cost? it essentially puts small businesses and others out of the business of trying to be able to afford their own health plans. that is the big problem right

now, and one of the things people are going to be arguing about is that this bill is progressing -- as the bill progresses through the debates. >> it will mainly hurt big corporations. jon: you are a campaign manager from way back, bob. the polls going into last night's speech said that a majority of americans are now against the health care plan. did he do enough to change anybody's mind? >> if you look at this morning, you have a two-thirds of people supporting. the question is whether he can keep momentum going. from a campaign standpoint, you move and move now. that is what they're talking about a bill by the end of september in the -- that is why they are talking about a bill by the end of september in the house.

jane: ever lose your keys? you probably do not panic, but boy, do i. i imagine if you lost the key -- imagine if you lost the keys to over 100 government offices. also, an ivy league students is suddenly missing -- and i believe student is suddenly missing. did she get scared? [ woman ] dear cat. gentle cat. your hair mixes with pollen and dust in the air.

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jon: more than 100 offices in the texas capitol building are getting new lots after a set of all of their keys disappeared. the incident forces a tighter security members -- tighter security measures in case they were stolen. it disappeared monday and have not been seen since. staffers have been warned to secure property and important documents.

jane: at yale university, the fbi and police are searching for a graduate student who has gone missing. her name is any lee, 24 years old, last seen entering her laboratory on tuesday. her purse was found in her office. adding to the entry of all of this, she is supposed to be married this sunday. on the phone with us is a writer for the "new haven register." the first thing you would think is that she got cold feet. what are police sang? -- what are police saying? >> they are being tight-lipped. but officials have said that there's no evidence to suggest foul play. as to decisions about weddings and not showing up, no one is talking about that at all. jane: it is strange that everything was still found in

her office. if you take a look at these pictures, she is tiny, 90 pounds are so. what are her friends saying? >> they are worried, because she is a very organized person, so the fact she was missing from the lab and did not show up as a teaching assistant at a particular class is what has made them very worried. jane: in terms of for activity, did she traveled a lot by herself at night or worry about her environment and she traveled? >> no. she was a very careful person. she took precautions. the last record they have is up for entering a building at 10:00 a.m. in the morning, and they spent a lot of time searching that building last night, a big laboratory building with a connected grosz. they still have not found anything. my understanding is that they are still reviewing security

cameras to see if there is any evidence that she actually left the building. >> have police spoken to the fiancee? >> there are reports that he is a graduate student at columbia and they knew each other as undergraduates at the university of rochester. there are reports in new haven that he is there helping with the search, but police are not commenting about that. jane: yankee for your time. -- thank you for your time. jon: getting ready for flu season, and while h1n1 is the top concern, they do not want you to forget about the regular flu, as well. president obama reaching out last night to get support for his health care reform. as this moves forward, is there a chance to both sides working together? >> the time for victory is over. the time for a game has passed.

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>> in terms of our timetable on health care, when we are ready, we will take the bill to the floor. but we are waiting for the

finance committee to appear good news that we will see a bill next tuesday so members have an idea what is in the bill. there are some things where there are areas of disagreement. jon: speaker of the house nancy pelosi saying that we will pass insurance reform this year in this country. she is piggybacking on top of president barack obama's speech last night, saying that it will pass this year and that she is confident that the president will sign a bill this year. in a couple of minutes, reaction from eric cantor, representative from virginia was part of the republican leadership team. based on the polls, it is not clear whether the american people are all that ready for what the speaker has to say. we will get the republican taken just a couple of minutes.

and now, to the h1n1 virus. just moments ago, public health officials told in a conference on the upcoming flu season. one concern in keeping federal, state, and local governments all on the same page. how is that going? are they all on the same page? >> the federal government is helping them with information. >> there are almost daily bulletin is to inform us about ways that we can activate our resources.

>> they have been forthcoming in their statements, and we expect things to be available. >> both women say they expect cities to get millions of dollars. jon: local communities have to handle it, right? >> right. it is being tested. listen to this. >> one there are differences in how public health is practiced

and deliver. we want to provide as much flexibility at the stake and local level as possible. but the vaccine is expected to be available around-exposure -- >> the vaccine is expected to be available around mid-october. jon: there are worries that the vaccine does not worry so well. is there any evidence? >> if it continues to say the same as last spring, its continue to be a mild flu, albeit possibly widespread. so far, no evidence of mutation yet. jon: testing the new flu vaccine. how do you do that on pregnant women? that is coming up. jane: this battle involves taking sides with china or with

the united steelworkers. wendell is at the white house to explain what that is all about. >> they are trying to deal with what they claim as a surge in chinese imports by imposing tariffs on goods made in china. the tire companies do not want the tariffs. they are just made in china where labor is cheaper. the steelworkers union, represented tire workers in the u.s., say it is a classic case of jobs being shipped overseas. >> we have lost thousands of those jobs across the country since china has undercut our prices. so we can imagine that that is in the billions of dollars, if not tens of billions of dollars of lost wealth. >> companies denied there even was a surge, and there were

fewer imports this time than last, but that might further reflect the recession and a drop in car sales. the president is supposed to make the decision by september 17, a week before a summit of the 20 richest nations in pittsburgh where they will certainly reform a promise. >> section 421 allows reserving tariffs if there's a section on imports. we are told that the private

case is in process. jon: the dow is up 28 points after in. what is the latest? >> you and i were talking earlier this hour about jobs and the employment market properly -- possibly improving a little bit. you can look at it a couplijt @ there could be the glass and the diversion, and we're down. in some state of foreclosure.

keep in mind that there are suspects that are really being hit hard. in nevada, one out of every 62 units. florida, one out of 140. the state of nevada is really being hit hard, and so are other states you're looking at. we can throw michigan on that list, as well. so rough in certain areas, but just like with jobs, the trend is getting better, and that is a good sign. jane: when you are pregnant, you are advised to stay away from what you eat and drink, medications. but now they want pregnant women to try the h1n1 vaccine. achoo!

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take a listen. >> under this plan, it will be against the law for companies to deny coverage because of a pre- existing condition. it will be impossible for them to water it down when you get the most or place a cap on the amount of coverage you can receive in a year or a lifetime. we will place a limit on out-of- pocket expenses. jane: the president said that his door is always open for serious proposals. are republicans considering that door? >> first of all, what the american people are expecting --

i do not know if the president got there to communicate that we have to guarantee decisions made in health care for the patient and doctor. they forced government rationing, any basis whatsoever. and in any plan we do, we have to demonstrate that we do not want to bust the bank. and we know that the way congress is, whenever they say, it will be over a trillion. we have to figure out how to effect reforms so it is done right.

jane: how do you make that happen? >> the president is open to ideas. there are many things that we can work together on. we can address the portability situation, and you should not have to lose health care if you lose your job. we have solutions to that. thirdly, let's go about serious reform in terms of lawsuit abuse. we have to get them out of the examiñing room so we can do the reform right. jane: that was one of the overtures last night, a possibility of looking at this medical malpractice reform. if it weren't proposed legislation, would republicans be on board? >> we have to work to get meaningful reform.

the president discussed it, but unless you affect state law at some level, you are not going to have real reform. that is what we need to do to rein in the cost associated with health care in this country. jane: what do you see as you look to your crystal ball? >> i hope we can take care of the situation in par individuals in a market of individual insurance with a pre-existing condition -- like ms or crowns disease, and they have a much higher bill for insurance premiums, we have to be able to address that. when senator mccain was running for president, they offered universal access programs at the

state level. we had ought to be able to make that happen at the state level now. let's go ahead and make that happen. we have to have the flexibility and insurance laws so you do not have to lose your insurance whe you lose your job. these are things we can make happen now and not try and go in and change what people like about their health care. most americans like what we have. jane: people tell me that i'm the last person who should ask what people are doing on these machines. but what were you doing? >> let me tell you something.

we use black berries to take notes, to communicate. but the people are looking for us in congress to go ahead and make some progress and meaningful reform that makes sense. that is what we're trying to do in the debate after this speech. i think the president came to congress to prompt us to do that and we have got to arrive at a ppoint where we're going to reject any notion that the government is going to replace the system of health care in this country. jane: they say they fall in line in where the republicans are in this issue. >> i reject that notion. i think all of us are listening to the president, the president of our country, we need to work with him and make sure that we get this thing right.

obviously, i do not agree with all but the president said last night, but that is the process, here. he offers our ideas and we intend to go in that direction. jane: when i signed up for black prairie -- when i signed up for blackberry addicts anonymous, i will give you a call. jon: federal health officials wanted a new test for the h1n1 vaccine. it is a process that expectant mothers are treating with some caution. he brought something for jane, i see? >> yes. i have a yearly flu vaccine which has come out today. i just got my files and have started to give it. this is not the swine flu

vaccine. this is the yearly vaccine. and we already make a priority for pregnant women to do this. when you give a pregnant women the vaccine, you are protecting an unborn infant. in the first six months of life, and infant cannot get a flu shot. we are concerned about new burns and have to protect them by vaccinating pregnant women. this is just a variation on the 1950's. it should be a safe vaccine. the time is now. a large percentage of the deaths we have seen has been in pregnant women. that is because they are on the compromise side, they do not

have the same immunity you and i have. plus, since they are younger, they do not have the immunity. jane: not my favorite part of the process. good to see you. the congressman who called controversy last night by yelling "you lie," he now has something else to say.

jon: if you were watching the

speech last night, you may have heard an outburst. it was not exactly audible on the president's microphone, but because the president to stop and say, "no, that is not true. the outburst came from joe wilson of south carolina. the president said his health care reform plan is not going to cover illegal immigrants. that caused a representative will send it to say two words -- "you lie." that was when the president said, "no, you are wrong." that was a big breach of protocol. joe wilson, a republican from south carolina, has since apologized and the white house has accepted his apology, but we are just getting the first comments from republicans on that poll kerf awful last night.

-- that whole situation last night. we will bring it to you in just a few minutes. jane: testimony being taken on why the governent failed to catch bernard madoff, even though the sec was tipped off about his plans over several years. new audio tapes revealed that madoff was also coaching others on how to fool the feds. let's get to atom in d.c. for us. these tapes are amazing. >> they are, especially when yo3 for the sec examiners who completed the report. 500 pages can out last week saying that essentially they were inexperienced, failed to follow up on leads such as catching him lying. actually caught him lying but let it go. other things that could have been obvious red flags. but in these recordings, he is

telling these guys how to talk to investigators, essentially saying to play it cool and not give them a lot of information. listen to the swindler in his own words. >> when you speak to these guys, you are not supposed to be exact on stuff. no one pays attention to these types of things, who calls, who doesn't, who remembers. it is basically more casual. >> back to you. jane: thank you very much. jon: there was an incident last night in the house chamber as president obama spoke. let's listen to south carolina republican work joe wilson on

what that is all about. >> last i heard from the leadership that they wanted me to contact the white house and state that my statements were inappropriate. i did, and i am grateful that the white house, talking with them, they indicated that they appreciated the call and we needed to have a civil discussion about health-care issues, and i certainly agree with that. jon: he has apologized for is an outburst, and the white house accepted it. i guess that's pretty much end to the matter. we will see. there was a time i wouldn't step out of the house

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jane: 9 women fooled into thinking they were becoming reality tv stars. a scam, and how police busted it. [captioning made possible by fox news channel] captioned by the national captioning institute --www.ncicap.org-- jon: a criminal knocking over 26 churches this summer. are there any leads? jane: joe biden said this morning that he is reacting to the speech last night. our lawmakers ready to have the plan? how about this time line? >> it is ambitious, and it would mean that the house and senate would have to break longstanding promises.

one of the five committees that was tasked with coming up with this legislation has essentially been stalled for three months. so they would have to get those committee bills, and they would go to each chamber. compromising and working out the differences, another week and a half or two, before passes, which gives us past the end of october. there is a deadline to see if they are going to push it through with this complicated tool.

it is very controversial. but they have to make up their minds about a month and there's no way they will get this passed by then, and that battle on the 15th is what means it will be difficult to get this done at all before thanksgiving. jane: what happened to the groups in the committee continued to consider being powerful? >> they are meeting this morning, and we may have a watch of a hallway in the hart office building, just a stone's throw from here. they are meeting again, and they came up with a proposal a few days ago that had an alternative to the so-called public option, the government run program. it is a co-op proposal, a lot less expensive, and it has not been finished yet. their bipartisan effort has eroded, in part because of the speech last night. there's a question, if they came

up with something concrete, could that upstage the chief executive on this night? if they wait too long, will be relegated to a irrelevance? that will not happen. it is clear that in the senate, there is not support for a government insurance program. the only alternative now is this co-op proposal that would allow people in buying pools around the country to buy insurance cheaper on the commercial market and compete against private insurance companies. that is the only alternative and a very telling one, that president obama never mentioned that last night. he talked about a means to an end, suggesting to some that it could be thrown overboard, but he said never said anything different about the alternative. where are the specifics? jane: thank you. jon: word from nasa that space shuttle discovery has just finished an adjustment of its

nay set -- nasa is not clear on what the debris is or where it came from. they believe it may have come loose from an earlier space walk, and they believed it could have punched a hole in the ship as it is on its way home. the shuttle is expected to land, scheduled to land in florida this evening. storms in the area could push the expected landed back for a day or two. but one headache is out of the way. whatever the debris was, it will not be a factor after they adjusted the hon. byrne, fire the rockets for 20 seconds, and put the shuttle and the new trajectory. jane: in california, firefighters have been battling shifting wind as they struggle to get fuel from the station fire.

it has been burning about 15 days now. it has stopped growing, good news for crews there, but now they're trying to close the 19- mile gap to the national forest, an effort hampered by a dry wind. this specifically has charge almost 250 square miles. jon: hundreds of businesses are coming under scrutiny by the government. homeland security wants to know whether they deliberately hired illegal workers. if so, those companies could face heavy fines and stiff penalties. dan is live in seattle. how do they go about figuring this out? is it a new investigation? >> this marks a shift in immigration policy. the department of homeland security now is going after exclusively employers who hire illegal immigrants. the bush administration would do investigations of companies and also ground up and deport

illegal workers who are already hired. so the emphasis now is solely on the employers, and what they're doing is they have announced 652 i-9 audits. that form is what employers have to fill out when they have somebody who is not in the country, who is not an american citizen. they have to fill out this form periods of these audits look for people who have been hired illegally, given false documents to employers, and what this march is a shift away from the mass deportation and these employers are forced them to fire workers. if they were normally knowingly hired, they are fired. this marks a shift from the bush years when it was both deportation and investigations of the companies. jon: the businesses we are talking about are things like apple growers. you talked to some of them, right? >> that is right, and they are shaking in their boots because if they lost all their workers in this country illegally, and

they are not sure if they are legal or not, but they have to look the other way because they cannot get americans to do the job of picking the apples and other fruit. if they lost all the workers, their industry would collapse completely. they are in favor phasing in some sort of immigration reform that would allow the people could have been in the country picking apples to get citizenship. but while the 652 audits does not seem like a big deal, spoke to officials and they say this is only the beginning. they really do think that if they go after employers and crack down on than they can reduce the incentive to hire illegal workers and eventually get to a legal work force in the country. jon: does that mean the government is no longer emphasizing a crack down? they are oing after employers come instead? >> that is right. when they go into this company and pull their forms, if they will tell the company, ok, you have got to fire x number of workers. they do not round up those

workers. the bush administration and janet napolitano took a lot of heat. there was a raid here at an engine plant shortly after he took office and the rights groups were howling because they thought this was the wrong message to send, continuing the bush years. they got what they wanted. now there's a shift in emphasis. what will happen is illegal workers will not be deported, but they will go back and blend into society and probably try to work somewhere else. jon: all right. thank you. jane: nicholas prices spent over a year with members of the air force as they prepared for war. the collection has now been acquired by the library of congress. catherine herridge is in d.c. for us with some of these photographs. incredible. do you have the story behind them? >> yes, the first photograph, if

we can look at that again, is a woman, an african-american in the honor guard, and a photographer told me that he chose this as the signature picture because most people did not realize that 20% of the air force is women. a very protective, mothering image, taking care of the country. it is nice to reflect onñit one day before the 9/11 anniversary. jane: they are not all of people. some are of animals? >> here is a dog wearing goggles. he has a serious mission, though, to in bomb detection. the story that james out of the picture -- came out of the picture, the dog was in an armored car with his trainer and kept pulling up his pant leg.

he went to check on the dog, and at that moment, there was some roadside bomb that exploded. so in some ways, the dog had a second sense of what was going on, and by pulling but trainer down, he saved his life. jane: the photographer met a lot of people were just about to be deployed, right? >> correct. 350. and if you look at this picture here, you can see storm clouds on the horizon. if you look, there is a curve of the? and the benches come down. this is a moving picture that lines up spontaneously, and in a week's time after the picture was taken, they deployed. and i question that we're facing has been a constant for the military in recent years.

starting in october, you should be able to see all of the pictures on some of the websites. but you can actually go in person and request to see them, about 60 in total. not just people, but some hardware, too. what was called the air force on the ground. not everyone is a pilot. pilots can a lot of recognition, but it is difficult to get the plane up in the air. jon: the investigation into jaycee dugard's kidnapping and sexual assault is expanding again, reaching far from that awful backyard hershey was allegedly held captive and abused for years.

?7

>> there remain significant details to be ironed out.

i believe a broad consensus exists for the aspects of the planned i just said. consumer protections for those with insurance, and exchange allowing individuals and small businesses to purchase affordable coverage, and a requirement that people who can afford insurance get insurance. jon: reaction to obama's address to congress last night is getting mixed reviews from lawmakers. supporters hope it brings both sides together to come up with a health care plan everyone can get behind. but not everybody took away bipartisan message from the address. one lawmaker, lindsey gramm of south carolina -- we saw you there with john mccain. the president just said he believes that a broad consensus exists on those points that he outlined. do you?

>> i think the speech was a disaster. his goal was to unite the democrats and a hard left and he may have succeeded, but i want to find a bipartisan solution, and i felt the speech was combative. it is not bickering. there is serious policy debate. and there is no consensus about a $900 billion bill that is not going to be paid for, and the presidential outline for paying for this bill does not make sense to me. so i think he lost an opportunity to create consensus and bring people together. jon: these are not small issues. >> and his explanation of the public option does not resonate with me. is not credible.

people will drop health care as employers -- why would you pay for it the government option is available to employees? it would be a disaster. i want to work with democrats. i am on a bipartisan bill to mandate coverage, but you do it revenue neutral, and i thought the president last night was unfair to critics. quite frankly, it works both ways. instead of calling each other out, you find common grounds. and if they do reconciliation where they try and get the votes, it is a mission that you cannot get the votes. if he cannot embrace reform, maybe we should do something

else besides this massive bill. jon: let me ask you about a remark from joe wilson. the white house accepted it. does that and the matter? >> he is a good man and should not be defined by that moment. he has four boys in the military and his pajsionate about politics. the president in my opinion set the wrong tone in the meeting. it does not justify what the congressman said, and i'm glad he apologized. i frankly i was offended by the whole town and thought it was a partisan pep rally instead of a chance to bring the country together. and when it comes to that, i will do everything i can to help him get reelected because he will support the president in afghanistan if he sends more troops. democrats are not going to take betsy over.

they should send somebody to help president obama through this massive agenda. jon: senator, thank you. jane: if you went to the beach this summer, you may have seen your tax dollars literally being swept out to sea. not quite literally, but you know what i mean. congress spent hundreds of millions of dollars dumping sand on beaches across the country. erosion just washes away, so why are these products still going strong? jon: basket some more reaction. >> a lot of plans offered by employees are going to be dropped as a result of the requirement. so there are organizations that have estimated tens of millions of americans could in fact be

forced down of their employer- provided coverage into the plan. thirdly, illegal immigrants would not get government benefits according to the president. but the nonpartisan congressional research service on august 26 set in part that h.r. 3200 does not contain any restrictions on non-citizens participating in and paying for coverage available through the exchange. whether the non-citizens are legally or illegally present or in the united states temporarily or permanently. and this report makes it pretty clear. there were to opportunities in committee for democrats to make clear illegal immigrants would not be covered by putting in requirements for citizenship. both of those amendments were

rejected. fourth, he said he will protect medicare, bt the democrats' plan includes more than $500 billion worth of cuts to medicare over the next 10 years, and there are reports after reports making it clear that benefit cuts for services will be cut to medicare recipients. secondly, i would point out that part of their so-called pay for in this plan would be to take away medicare advantage. 25% of seniors get their health care for medicare advantage and there is not any question that if you cut and medicare evanish payments, seniors will get less services. when it is all said and done, and you listen to the president's speech, he thought about it, there was nothing new in the president's speech last night, and as i told to back in

july, the american people are angry. they're frustrated, fed up with washington, and i heard that message everywhere i went. i had workers at the denver airport stop me to say, keep fighting for us. as i was walking down the hall to come into this room, a visitor to the capital stop me to say to keep fighting for him. i was all present at this tea party in westchester with 18,000 people who one after another -- jon: president obama laid down some markers last night to reform health care and how it is paid for. you can see the argument. and from the president's side of the aisle, harry reid is also speaking right now, and he just said he believes the speech was a game-changer. let's listen in to what the

majority leader has to say. >> he said very clearly, and i appreciate it. the president came to congress last night and addressed all members. he specifically referred to a number of senators, mccain,÷+ hatch. even took a page after president bush's book and directed his cabinet to start studying. there is no question that the president is sincere about this and is the time we do something and not just talk about it. in spite of the efforts of those who try to derail the plan and maintain status quo, as the president said, we're probably 90% down, 80% or 90% on the hard stuff. we have to get details done now. when chairman baucus lays down a

bill next week, we will find that there is going to be room for healthy, vigorous debate on what will take place in the senate. that is the way it should be. but the bottom line is we have to bring in skyrocketing costs, up because they're breaking the backs of the american people. today, across the country. nevada, washington, illinois, new york, all over the country some 22 -- some 14,000 americans are losing health insurance. seven days a week. that says it all. 14,000 people from 50 states and 220 from nevada. so we will continue finishing the last 10, 15, or 20% of the proposal that has to come before the american people, and we have a schedule now announced by the chairman of the finance committee and look forward to

getting this done as quickly as we can. jon: democrats continue to e lobby behind with the president laid out last night. the question is, will it all work? will there be health care reform in this country? some democrats are saying by thanksgiving. carl seems to think that is very optimistic. as you just heard from the leader of the house republicans, he does not want to see it happen at all on the skill the president has outlined, not according to the terms outlined last night. the arguing goes on. announcer: you could buy 300 bottles of water. or just one brita filter.

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call now or go to lifelock.com. ♪ jane: waiting for new video of the president meeting with his cabinet. we are expecting tape feedback of that and as soon as we get it we will play it for you. until then, hopes for a fresh start on the debate this fall. president obama delivered the address with passion, calling for and to partisan bickering and for all sides to come together. take a listen. >> i will continue to seek common ground. if you come to me with a serious set of proposals, i will be there to listen. my door is always open. ñi>> working together a bipartin way, we can truly lower the cost of health care while improving quality for the american people.

> jane: that was the republican response. let's get to our contributors. we have heard so much this morning about the president has now taken ownership of this issue, his plan. what does that mean going forward? >> he has not laid out the details yet. the best chicken say at this time is that he made it clear on the public option that he is willing to negotiate, that he is willing. he said that clearly he wants the plan to be deficit-neutral. on those two issues, he has made some clarity available, but i think if you're the average person listening at home last night, you might still be confused about the details of the plan. jane: for the average person, i

guess those overtures sounds nice. but where we go, starting today? >> this is what president obama does. he has done it since he was a candidate. he always positions himself between the middle of tw extremes, and he did it last night, suggesting he was not in favor of the plan republicans and conservatives favor, nor was he in favor of the single-payer plan. he is in a sensible middle. the problem is that he wants to fully embrace single payer and said he would be supporting that if it were not so politically difficult. i think that gives rise to real suspicions for people of goodwill on both sides of the issue, and particularly in the middle. jane: nancy pelosi said foreshore by the end of the

year. your thoughts on getting something done, and then we can talk about what the heck we are getting done and what it will look like. >> of the whole time frame begins with max baucus and the senate finance committee. we expect here in washington something to be done in two weeks. if you move towards conferences and bordering back-and-forth, i think you will have something to take shape by thanksgiving, whether the vote is for the end of the year or not. that is the time frame. but the big question is not whether or not you can have it done in that timeframe, it is whether or not you have enough votes to win enough moderate democrats over to convincingly pass this plan, whatever id is -- it is. jane: it ráh'ot a simple let's meet and hammer it out. it is a significant difference for the bill. >> yes, and i think the bill

last night on intentionally elicited laughter when the president acknowledged there were significant details that needed to be worked out and there was a hushed laughter from the chamber. these are huge issues, and i think that the office yesterday put out a very effective piece about moderate democrats who would not vote for the current bill, including a public option , and 57 liberal democrats say they would not vote for a bill that does not include a public option. the president did his best. jane: we just do not know. good to see both. thank you. jon: from coast to coast, some of the work your tax dollars have purchased is washing away, literally. for each of the 10 years,

beaches are looking good we are tracking your tax dollars live on santa monica, california. william? >> the products are not chosen on merit or need but by in local congressman who is lobbied by a beach community. it has picked up 65% by federal taxpayers who can watch their money wash away with every wave. >> these are the worst type of pork barrel projects. >> talk about money running through your fingers. congress dumps up to $100 million in sand on beaches each year, only to have a wash away again.

>> taxpayers replenished one beats 10 times in new jersey for $24 million. another one for $84 million. >> this is part of maintaining a critical asset. it is basically the reason most of us moved to the coast in the first place. >> his speech in an sinise has, calif., cost taxpayers 4 million. -- this beach in encinitas, california, cost taxpayers $4 million. these are basically maintenance projects, and efforts to end the subsidy in congress. jon: that works out to be more than a billion bucks?

>> it is actually $3 billion, according to the cbo. and this practice, if they estimate we could save between $200,000,000.400000005 dollars in the next 12 years. jon: you have people in iowa and minnesota pain to pump sand onto beaches in california. >> this project allows the ec to continue. you can say you have a museum that is no worse than the project, and then you have a polynesian village -- we are finding all kinds of projects that are not meeting national priorities. jon: william, thank you. if you would like to learn more, go to foxnews.com and type in "tracking your taxes." you will find complete coverage

of this and other issues he has been falling on this topic. jane: we are waiting for a video tape coming directly from obama's meeting with his cabinet today. we will talk with some supporters on the left of health care reform. there is the president. >> we had a cabinet meeting with secretary clinton engaged providing an overview of our national security posture. secretary geithner discussed some of the promise and peril of our economic situation. but we spend a large portion of our time discussing the critical importance of health care

reform. this is an issue touching on all of the agencies that are represented. the department of labour understands it is very difficult for workers to obtain raises of any significance if increased productivity is all going into increased health care cost. but a part of commerce is constantly hearing stories from businesses small and large about ever-escalating premiums and the need to get control of health-care costs. one of the biggest part of the budget is health care costs. we all understand this as an issue that the country is ready to deal with.

i continue to be open to suggestions and ideas from house members, senate members, democrats, republicans. what we cannot do is stand pat. what we can do is accept the status quo that is bankrupting families and our nation. i will not tolerate us continuing to pay more for less in health care. the time is right, and we're going to aggressively move to get this done, and every member of this cabinet is invested. i want to particularly thank secretary sibelius and this administration understands that this is important for all of our

agencies and constituencies. we are going to make a full press in the coming months to make sure we go ahead and get this done with the american people. thank you. i am a big believer that we all make mistakes. wilson of politesse quickly -- apologized quickly. we need to get to a point where we can have a conversation about issues affecting the american people without vitriol, name- calling, without the assumptions of the worst in other people's motives. we are all americans who want to do best for our country. we have different ideas, before the most part, we have the same aim, to make sure people act

responsibly and are able to get good jobs, good wages, raise their families, make sure kids have a good education, that they are protected from misfortune or accidents, having a health care retirement or security in place. retirement or security in place. when you see people using wild accusations, false claims, name- calling, sharply ideological approaches, that does not help. they want pragmatism, they want peoplq to stay focused on the job. i hope that some of the fever breaks. the media can also be helpful by

not giving all the attention, staying focused on the issues at hand. thank you very much. jon: president obama was a meeting with his cabinet this morning. he has had to restart but on the debate with that speech to the joint session of congress. you heard him say he accepted the apology of the congressman who had the outburst in the middle of the speech last night. one question is whether the public option is in or out. a government-run health insurance -- the president seemed to back away from it last night. there are some on the left who are not too happy about that, saying it is a must-do. nancy pelosi is among them. we will get it take from another congressman from california.

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call now for your free information kit... and medicare guide and find out... how you could start saving. jon: he will not back down. obama laying out specific goals last night, making it clear that he feels that reform must pass. but he also signaled he might be able to forgo the public option , were government-run health insurance. >> i reminded that for decades, the driving idea but behind reform has been to end abuses and make coverage available for those without it. the public option is only a means to that end. we should remain open to other ideas that help us accomplish our goal.

jon: that might not go well with the progressive caucus. with us is the chair, california rep lynn woolsey. when the president said that, did you or what? -- a plot? >> i did. it is on the table, no question about it. jon: but he did not say it has got to be there. >> he knows that 84 members of the progressive caucus and many members besides ourselves here are absolutely intent on the public option being part of the house health care reform bill. our chief argument is that this is the best way to cut costs and bring competition into the program and actually to bring

security for those were already covered and might lose their jobs or want to change jobs and have a choice, and one choice but to the public option -- could be the public option. jon: you don't think the free market is a more efficient way? has it been? 50 years of private health care insurance companies have not been able to do their job. why would we think they could do it now? jon: are medicare and medicaid examples of well-run program for dispensing medical care? >> they're very popular programs, and so is the veterans administration. those are programs running well with an overhead of less than 7%, versus 30% for private health care insurance companies.

jon: ok. thank you. your jane: can call it a scare for a group of nine women duke into thinking they would be stars of the new reality tv show. there was a nightmare following that period. and.

jon: back-to-school just not what it used to be. take a look at what cellphone cat -- cellphone are capturing across the country. kids staging and taking part in five clubs. in tennessee as many as 40 students could be charged. brian wilson has more from memphis. >> after-school fights captured on video, posted on youtube.

31 memphis area teenagers are finding that there is nowhere to hide from serious legal issues. meet me after school fights are nothing new. there is a troubling trend emerging across the country. middle school and high-school kids are fighting. these brutal be downs are often posted on the internet. you are watching one such flight to the finish. it will not end until one of them is seriously injured or knocked unconscious. in this particular case, both of those things happened. this is the part where the fight took place. a nice, upscale bed room community just outside of memphis. parents were surprised to learn that their teenagers were involved in an underground fight club, just like in the movie. >> the first rule of fight club is that you do not talk about five clubs. >> of these teenagers openly

brag about it. >> they were filling it and posting it on youtube. there was a level of competition to see who could give the most hits on the web site. >> one student said that there might be more to it. >> students were talking about getting money. >> there was money involved? >> yes, sir. >> and bragging rights? >> yes, sir. >> 115-year-old said -- one 15- year-old has been arrested for breaking a job. >> my grandson. >> was defending itself? >> he was defending himself. >> he did not start the fight? >> and not to my knowledge. >> he was not active in the fight club? >> and now, he was not. >> the fights have been removed from the website. but you can find hundreds of examples of other violent after-

school be down posted from communities across the country. what is driving teenagers to do this? >> we have created a culture in which we have essentially encourage this kind of behavior because people will do anything to get attention because attention is the metric by which they value themselves. >> three of the teenagers were 18 years old. they will be charged as adults. 28 teenagers have to show up here over the next couple of weeks in juvenile court. serious legal problems. >> scary stuff. >> these ladies were promised a chance to become television stars. that did that happen. we will explain. if you're taking 8 extra-strength tylenol...

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