Return to Transcripts main page

CNN Newsroom

Health Care Reform Vote; Volatile Pakistan; Slow and Painful Recovery Ahead; Trapped Underwater

Aired October 13, 2009 - 09:00   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

HEIDI COLLINS, CNN ANCHOR: Three hours without a heartbeat. Our Dr. Sanjay Gupta talks with a woman whose body temperature plunged to 56 degrees after she got stuck in icy water.

(INAUDIBLE) girls meet men and sex as part of the deal.

Good morning, everybody. I'm Heidi Collins. It is Tuesday, October 13th, and you in the CNN NEWSROOM.

We start with stories shaking Washington and rippling all the way to your neighborhood. First, spotlight on Capitol Hill this morning, where Congress' final health care proposal is poised to make it out of committee.

Our Brianna Keilar is going to look at where it will go next. So, we'll talk with her shortly. And Barbara Starr is at the Pentagon this morning with why the United States needs to be concerned about militant attacks in Pakistan.

First, off, it's make or break time for health care reform. Here's what we know at this point now. The Senate Finance Committee begins meeting next hour with the final vote on a compromise bill to take place sometime today. The panel is considering a 10-year, $829 billion plan that includes consumer protections and federal subsidies to help lower income family's purchase coverage.

What does all that mean? Well, the plan would require all Americans to have some type of health insurance, but it does not include an option for government-run health care. The Congressional Budget Office estimates the proposal would still leave $25 million people uninsured by 2019.

About a third of those uninsured would be illegal immigrants. Right now, about 46 million people do not have health insurance. Yesterday, the health insurance industry put out a report saying premiums for a typical family would actually rise by $4,000 by 2019 under the plan.

People who support the bill, and that includes the White House, say they think the report is flawed. And they question the timing of its release. But will it have an effect on the committee's vote?

Let's check in now with congressional correspondent Brianna Keilar with more on this.

Brianna, good morning to you. What exactly are the chances this bill passes by the end of today?

BRIANNA KEILAR, CNN CONGRESSIONAL CORRESPONDENT: The Democratic chairman, Heidi, of this committee, Max Baucus, says he is confident that he has the votes. This is a committee that is split 13-10, more Democrats than Republicans, but keep in mind, there are still a couple of Democrats who have not said they are necessarily going to vote for this bill.

That said, there's a sense that they wouldn't be -- they wouldn't want to be the ones to really scuttle this Democratic effort at overhauling health care. So, this is a key vote today. We really need to stress that. This is the fifth and final committee in Congress that would be passing a health care bill out of committee.

And this is a very unique bill, because it's more conservative than the other four. Both in its price tagging, Heidi, and also what's in it. So, let's take a look at that. You mentioned the overall price tag, $829 billion. Significant, because this is the only one below that $900 billion threshold that President Obama set.

Also, this includes health cooperatives, nonprofit health co-ops to bring -- to compete with private insurers, bring costs down, and this is an alternative to that public option, that government-run insurance plan, which is not in this bill.

This bill also, includes an individual mandate or requirement that Americans get health insurance, but it doesn't have that employer mandate, forcing employers to contribute to the health insurance of their employees that some other bills have.

COLLINS: Yes.

KEILAR: So, also, the Democrats on this committee are hoping to pick up one lone Republican here, Senator Olympia Snowe. She's made some positive sounds, Heidi, about the bill, but she has not committed to voting for it. So, that's really what we're looking for...

COLLINS: Yes.

KEILAR: ... as the committee begins here in an hour to discuss and say their final piece before a vote.

COLLINS: Yes. Got to talk quickly, though, Brianna, about this insurance industry study that came out yesterday, now, and saying that the bill could actually drive premiums up by several thousand dollars a year. What are you hearing on Capitol Hill about that today before the vote?

KEILAR: Democrats are pushing back hard on this, Heidi, as is the White House. They say it's not true. They say this study is self-serving, funded by the insurance industry, and that it doesn't take into account policies that will drive costs down.

And I have to say, there's a huge specter, sort of looming over this whole debate on health care, as really it hits a mark that it's never hit, that it hasn't hit in decades here with this vote. And that specter is that during the Clinton administration, the health industry was really instrumental in scuttling reform efforts. Democrats are aware of that, So, they're really on the defensive over this study.

COLLINS: All right. Well, we will be watching all of it, obviously. Brianna Keilar live for us this morning on Capitol Hill.

The spirit of cooperation, Secretary of State Hillary Clinton is sitting down with Russian president Dmitry Medvedev this hour. On the agenda are discussions on the next steps for Iran, missile defense, and a new nuclear arms control treaty.

Now earlier, she met with Russia's foreign minister who said they made progress on the nuclear issue. Clinton talked about the importance of moving forward.

(BEGIN VIDEO CLIP)

HILLARY CLINTON, SECRETARY OF STATE: President Obama and I believe that it is this cooperative relationship and the acceptance of shared responsibility that is really at the core of the 21st century relationship between the United States and Russia.

One example of that is the work that our technical experts are doing on a start agreement to cut our nuclear arsenals, to demonstrate leadership from the two largest nuclear powers in the world.

(END VIDEO CLIP)

COLLINS: We'll have a live report from Moscow on Secretary Clinton's meetings with President Medvedev and where they both stand on Iran coming up at the bottom of the hour.

Meanwhile, military jets attacked targets near the Afghan border in Pakistan this morning. The Pakistani military is targeting militant positions there. The offensive comes after a wave of new militant attacks throughout Pakistan.

CNN's Pentagon correspondent, Barbara Starr, has more.

(BEGIN VIDEOTAPE)

BARBARA STARR, CNN PENTAGON CORRESPONDENT (voice-over): Four bloody attacks in eight days. In the latest, a suicide bomber targets a military convoy passing through a bazaar in northwest Pakistan. More than 40 killed. It was a weekend standoff at army headquarters in Rawalpindi that has shaken Pakistan deeply and has Washington worried.

Pakistani Taliban disguised as soldiers stormed the compound, seizing hostages. Eleven Pakistani troops and nine militants were killed. The Pakistani army spokesman tried to defend the massive security breach.

MAJ. GEN. ATHAR ABBAS, PAKISTAN MILITARY SPOKESMAN: Can anybody guarantee today that 100 percent, any organization for that matter, any army or any outside party, can prevent a single act of terrorism? It's not possible.

STARR: But for the U.S., a potentially more frightening concern about growing Taliban capabilities was expressed by a key Republican senator on CBS' "Face the Nation."

SEN. MITCH MCCONNELL (R), MINORITY LEADER: We also, know that Pakistan has nuclear weapons. The Taliban taking over a country like Pakistan would be completely and totally unacceptable, destabilizing not only in that area of the world, but all around.

STARR: The Taliban's goal may not be to take over the country, just to wreak havoc. Experts believe the attacks are revenge for the recent killing of Pakistani Taliban leader, Baitullah Mehsud, in a U.S. missile strike and an effort to blunt upcoming Pakistan military offense in South Waziristan, an al Qaeda and Taliban stronghold.

The Taliban's boldness underscores the group's ability to maintain its influence, even after their leader was killed. Robert Grenier, the former CIA station chief in Pakistan, says al Qaeda has a growing partner in the Taliban.

ROBERT GRENIER, FORMER CIA STATION CHIEF IN PAKISTAN: If they're asked for support by al Qaeda, they cannot and they will not say no.

(END VIDEOTAPE)

COLLINS: Barbara Starr joining us now live. So, Barbara, we see all this violence. What does the United States think is coming next the Pakistan? Because they've got to be prepared for whatever may be next.

STARR: You know, U.S. military commanders, administration officials tell us they don't really see an end to this Taliban offensive in Pakistan anytime soon unless the Pakistani military can really crack down.

One of the things they're watching very carefully, the Taliban leaders and warlords are expected to have their regular, if you will, winter strategy meeting in the coming weeks, So, they will be making more plans, possibly for more attacks, and that's a meeting the U.S. is going to watch very carefully. Heidi?

COLLINS: Yes, absolutely. All right, Barbara Starr, our Pentagon correspondent. Thanks, Barbara.

STARR: Sure.

COLLINS: Most top economists actually think the recession is finally over. But if you're expecting some new jobs and easing on credit, be prepared to wait for a long time.

ROB MARCIANO, AMS METEOROLOGIST: Flooding rains yesterday, some snow in the Midwest, record-breaking snow, as a matter of fact, and a doozy of a storm right now slamming the west coast.

The weather report is coming up when the CNN NEWSROOM comes right back.

(COMMERCIAL BREAK)

COLLINS: Head over to the Severe Weather Center now. Rob Marciano standing by. Threats of flooding and land -- mudslides and everything, and I think we're still talking about the Southeast, because we are dealing with more and more rain here.

MARCIANO: Yes, a little bit of flooding yesterday across the southeast. Here's some of the video coming in from Georgia. Not nearly as bad as it was two weeks ago, thankfully. But as you can imagine, the rivers and streams, kind of like a cut that's just starting to heal over and then, boom, you kind of hit it accidentally and you open it up. So, it didn't take a whole lot of rain yesterday.

We saw anywhere from two to four inches in spots and that got the creeks and rivers rising in a hurry. Most of them have since subsided. And this is what the downtown area looks like right now or at least the midtown area of Atlanta.

Still kind of damp, still kind of dreary. And as luck would have it, another flood watch has been issued for the Atlanta area, beginning later on tonight for another batch of rain that will be heading into our area later on today.

(WEATHER REPORT)

MARCIANO: Heidi, back over to you.

COLLINS: All right, very good. Thank you, Rob.

MARCIANO: You bet.

COLLINS: On Wall Street, the Dow coming off a new one-year high and now it's creeping back towards that 10,000 mark. Can we expect the climb to continue? Christine Romans is joining us now live from New York.

Christine, hopefully the markets won't take a break today. Will they?

CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: Well, even a couple of hours ago, people were saying, there could be a little stumble here this morning.

COLLINS: Yes.

ROMANS: People start watching the stocks opening three or fours before it actually happens, Heidi.

COLLINS: Yes, I know.

ROMANS: And -- but now you have futures up a little bit So, it might be that things are stable here on the opening. You're right that yesterday there was a new closing high for the Dow. It's been a positive year now overall for the major stock market averages. You're still down quite a bit from the records of late October 2007, but that rally has continued to move ahead here on hopes that the economy's recovering, Heidi.

COLLINS: Yes. Markets have been telling us, it seems like anyway, for a while that recovery is here. But we have to remember they're a, what type of indicator?

ROMANS: Yes, exactly. They are a leading indicator. So, now we've been hearing for So, long about this...

COLLINS: Haven't been feeling it.

ROMANS: Yes. We have been feeling again. That's absolutely right. And the National Association of Business Economists, the NABE, just released a report saying that, in fact, the great recession is over. Now this isn't the group that is the official arbiter of what is the beginning and the end of the recession. But these business economists, 81 percent of them say the recession is over, 9 of them are -- 10 percent of them are uncertain, and 9 percent said simply no.

Now, when will the jobs return? These same economists were asked that. And wow, 54 percent of them said you're not going to see jobs returning until the year 2012. Some people think 2013, about 33 percent. Five percent say even longer than that. So, many of these economists say the recession may be over, but the recovery will be muted or painful, to say the least.

So, that's something that even as the stock market keeps going up, up, up, Heidi, how do we feel? We're certainly not feeling it in our day-to-day life, especially if you're looking for a job right now.

COLLINS: Yes. That's the same organization that took, like, I don't remember how long, even 12 months or so, to tell us that we were actually in the recession in the first place.

ROMANS: That's the National Bureau of Economic Research, the NBER, a different group. They're the official arbiter. And we haven't heard from them yet about whether the recession is over. And you're right, the NBER, that official arbiter of -- you know, of the business cycle, they -- it took them a year before we really in a recession, and that's not atypical because they are an academic group. They get together and meet...

COLLINS: Sure.

ROMANS: ...when, you know on a need -- they're not changing the course of history when they say there's a recession or not. But these business economists, they're willing to go out there and say that, indeed, it's over.

COLLINS: Yes, indeed. Well, "Romans' Numeral" today would be what? I was trying to guess at what your number's going to be and I'm never right.

ROMANS: 1983, it's a year, Heidi.

COLLINS: OK.

ROMANS: You might get this one. 1983, it's a year. It has to do with why maybe it doesn't feel So, great that the great recession could be over because the unemployment rate is the highest it's been since 1983.

COLLINS: That sad, yes.

ROMANS: And that is still the challenge for this administration. It's the challenge for policy makers, it's the challenge for employers and employees, states, just about everybody you can think of, still faced with this issue.

And this survey, frankly, says that they think that the unemployment rate will be 10 percent by the end of the year. That's still a big problem for the economy. It's a big problem for social policy. And that's why we say if someone wants to ring the bell and say the recession is over, we need to keep in mind that the job situation is still quite difficult.

COLLINS: Absolutely. All right, Christine Romans, appreciate that.

ROMANS: Sure.

COLLINS: Thank you.

ROMANS: Yes.

COLLINS: A seventh grader set on fire in Florida. Late-night arrests in the brutal attack. Police now trying to find out why the teenager was targeted.

(COMMERCIAL BREAK)

COLLINS: Time now to check some of the top stories we're watching this morning.

Three young people accused of attacking this Florida teenager are now under arrest. They were picked up late last night. Broward County Police say the 15-year-old was doused with a flammable liquid and set on fire. He is in the hospital with severe burns over 75 percent of his body.

An Arizona building safety manager says organizers of a retreat had no permit to build the sweat lodge where two people died last week. They were overcome by the heat. Three others are still in the hospital this morning, one of them in critical condition. A criminal investigation is under way, but no charges have yet been filed.

And on Capitol Hill, the Senate Finance Committee meets 40 minutes from now, its way to a vote on a health care reform proposal. The plan expected to pass is considered by supporters as the best hope of five reform proposals in Congress. The next step, senior Senate Democrats will meet to try to merge this proposal with a more liberal one from another committee. Three hours without a heartbeat. Our Dr. Sanjay Gupta has a story of a woman who literally cheated death.

(COMMERCIAL BREAK)

COLLINS: Back from the brink. A woman falls into icy water, her heart stops for three hours. And incredibly, she survives. Becoming the coldest person ever to live. Her story is among those featured in a new book by our own Dr. Sanjay Gupta called "Cheating Death."

DR. SANJAY GUPTA, CNN CHIEF MEDICAL CORRESPONDENT: Heidi, I'll tell you, a lot of the stories in the book are stories that simply could not have been written t10 years ago. That's how fast medicine and science is moving.

We're not talking about $1 billion drugs or fancy procedures or techniques. In this case, we're simply talking about the cold and how it could possibly save someone instead of killing them. Take a look.

(BEGIN VIDEOTAPE)

DR. ANNA BAGENHOLM, SURVIVED AFTER THREE HOURS WITH NO HEARTBEAT: We first worked, three doctors, and then we went for a ski to -- in the afternoon. The problem is, when it comes down to this frozen ledge (ph), it's very steep. So, I hit some stairs and then I turned on my back and started to slide down the ice on my back.

And then Turvin, he was a bit lower and Marie was a bit higher. And then they kind of got rid of their equipment and ran to me. Because what I actually did was that I kind of hit a hole in the ice So, that the head went under.

GUPTA (voice-over): In fact, this is the exact spot where this all happened. Two of the men involved in Anna's rescue showed us.

UNIDENTIFIED MALE: She was where the water was most deep. It's not (INAUDIBLE) over the cliffs here.

GUPTA: At the time, most of the stream was covered with this thick layer of ice. You can only imagine the desperation her friends must have felt as the moments started to tick by. She struggled for a while then she stopped.

It took more than an hour, and this pointed shovel, to free Anna from the ice. Marie and Turvin immediately began CPR. As the clock was ticking, a helicopter flew Anna to the University Hospital of North Norway. It's an hour away (INAUDIBLE) where she was taken straight to the operating room.

UNIDENTIFIED MALE: She has completely dilated pupils. She is ashy, waxy white. She's wet, she's ice cold when I touched her skin, and she looks absolutely dead.

(END VIDEOTAPE)

GUPTA: What they're talking about is a woman who has no heartbeat for more over three hours. She has no blood pressure, she's not breathing on her own. And her pupils are dilated, which means that there is swelling of the brain. And yet despite all that, they slowly re-warm her. Not right away, but slowly, and today, she is a practicing physician in that same hospital where she was once declared dead.

That is what's happening. That's what "Cheating Death" is all about. And that's where a lot of breakthroughs in medicine start to happen. You have hypothermia that's now being used in many places around the world.

Norway, incidentally, where I was, north of the Arctic Circle, they do training exercises all the time to teach paramedics and doctors exactly what they might experience. I got in the water myself there, it was near freezing water, and I can tell you, within a few minutes, even with that protective suit on, I became hypothermic.

I got dizzy, nauseated, confused. That was just after 10 minutes. Imagine being in that water for three hours. Quite a story of Anna Bagenholm. Heidi, back to you.

COLLINS: All right, Sanjay, thanks. Incredible story. And don't miss the primetime debut of Dr. Gupta's special series, "CHEATING DEATH," this Saturday and Sunday 8:00 p.m. Eastern only on CNN.

And we are wanting to hear more from you about this story today on our blog, if you would. Have you survived the unsurvivable or do you know anyone who has actually cheated death?

We want to hear some of your stories. Just head on over to CNN.com,/heidi where our blog is and post your stories there. We'll share some of them later on in the show.

Many organizations are falling on tough times, as you know, but this one isn't likely to get much sympathy in the United States. Is al Qaeda really running out of money?

(COMMERCIAL BREAK)

ANNOUNCER: Live in the CNN NEWSROOM, Heidi Collins.

COLLINS: All right. As we wait for the opening bell this morning, on a Tuesday, we see -- it's actually Estee Lauder that we are looking at and their spokesmodel, Elizabeth Hurley there, getting ready to ring the opening bell for this Tuesday. Breast Cancer Awareness. Trying to bring some attention to that issue.

Also, trying to bring some attention to yet again this 10,000 mark. There's the opening bell. Susan Lisovicz is standing by.

What are we now, Susan, like 114 points away or so? Yes?

SUSAN LISOVICZ, CNN CORRESPONDENT: That's right. And actually, at the highs of the market yesterday, Heidi, we were about 69 points away. COLLINS: Yes.

LISOVICZ: Before giving up some of that. But well, we're not expecting a big rally at the open. Of course, we're awaiting lots and lots of earnings reports from corporate America. And that could push the Dow over 10,000.

But so far, earnings from Johnson & Johnson are making investors feel better. That's the company, of course, that makes band-aids, baby shampoo and Acuvue contacts. It reported a one percent increase in profits. Sales, meanwhile, fell because of competition from generics, and J&J shares are down 2.5 percent.

The auto sector, meanwhile, may be struggling in Detroit. Far different story in Beijing. Chinese auto sales surged nearly 80 percent last month compared to a year ago. The jump widens China's lead over the U.S. as the world's top auto market, thanks to stimulus spending and tax cuts.

General Motors getting close, meanwhile, to shedding yet another unit -- this time, its German Opel division. CEO Fritz Henderson says GM could finalize the deal to sell Opel to Canada's Magna as early as this week. Since going back GM has decided to shut down Pontiac, Saturn, and sell Saab and Hummer.

And selling is what we're seeing on the first minute of trading, Heidi. Dow is off about a quarter of a percent.

COLLINS: Going the wrong way.

LISOVICZ: Yes, going the wrong way, but it could change. This is actually a quiet day. We're going to be hearing from a lot of big financial companies later this week. Could be a completely different story. And we are expecting some improvement there, hopefully.

COLLINS: Very good. All right. Well, we'll be watching closely for many, many more hours. Thank you, Susan Lisovicz.

LISOVICZ: See you in a bit.

COLLINS: Afghanistan still without a clear result in its presidential election. A winner could be announced in the next few days, but that may do little to end the allegations of election fraud.

Our Atia Abawi is joining us now live from Kabul with more on this.

So, Atia, yes, it seems like it's been quite some time since the actual election day. Tell us about these allegations now.

ATIA ABAWI, CNN CORRESPONDENT: Heidi, I'm telling you, it's more dramatic than a soap opera here when it comes to the politics in Afghanistan. This election took place on August 20th. We're still waiting on final results. Even the top UN envoy here, who was accused by his former deputy to be -- by being involved in encouraging the fraud, finally admitting that there is widespread fraud. Just yesterday, one of the five commissioners, part of the electoral complaints commission, the electoral body here who's investigating the fraud allegations, he decided to resign. He was saying that the internationals, because he himself was Afghan, the internationals involved, he says, is putting -- has too much international influence on the final results.

President Karzai himself, today, coming out with a press release, asking the ECC to find a way to regain the trust of the Afghan people. But right now, the Afghan people, it's very hard for them to trust anyone.

Heidi?

COLLINS: Yes, and absolutely. In fact, there's a report out this morning on another issue. It's from the U.S. Treasury that actually says the al Qaeda is in its weakest financial condition now in several years.

What are you hearing from where you are on this?

ABAWI: Well, al Qaeda may be in a weak financial situation right now, but the insurgents groups within Afghanistan, and you have various groups, it's not just the Taliban, they're not in a weak financial situation at the moment. They are getting funding. They are getting funding from the drug trade here. This is a criminal industry. They're getting paid off, basically, for allowing it to continue.

But another big factor when it comes to the insurgency in Afghanistan is really funding when it comes to the Persian Gulf country. It's a well-known secret, as you could say, that it is the Gulf states that are primarily funding these groups throughout Afghanistan, whether it be the west, the south, or the east. And this is what keeps the insurgency going here in Afghanistan.

Heidi?

COLLINS: All right. Atia Abawi live from Kabul, Afghanistan for us. Atia, thank you.

Getting Russia on the same page with the U.S. over the Iran issue. A major goal of Secretary of State Hillary Clinton as she wraps up a five-nation tour in Russia today.

Senior international correspondent Matthew Chance is live now from Moscow.

So, Matthew, has Secretary Clinton gotten any assurances that Russia will indeed support the U.S. with tougher sanctions on Iran, if need be?

MATTHEW CHANCE, SENIOR INTERNATIONAL CORRESPONDENT: Now, there were some very kind words spoken between the Russian Foreign Minister Sergei Lavrov and Secretary of State Clinton about how they intend to cooperate in the future over tackling this very controversial issue of Iran's nuclear program.

But if Secretary Clinton came to Moscow seeking hard assurances from the Russians, they would stand by Washington in its attempts to tighten, toughen the sanction regime against the Islamic republic, she has gone away empty handed because she didn't get that from the Russians. They still expressed their reservation about tough sanctions, what needed to be achieved with regards to Iran.

Let's listen now to what Hillary Clinton had to say during their joint press conference.

(BEGIN VIDEO CLIP)

HILLARY CLINTON, SECRETARY OF STATE: Iran's nuclear program remains a matter of serious concern and we're working closely with Russia through the P5 plus 1 process. We had a constructive meeting in Geneva on October 1st. And we are working to ensure that Iran moves forward with us on this engagement track and demonstrates unequivocally that it is seeking only the peaceful use of nuclear weapons.

(END VIDEO CLIP)

CHANCE: I think Secretary Clinton meant the peaceful use of nuclear energy, not weapons. But regardless of that, she seems to have been talking about the great cooperation that's being achieved now, a big difference, at the very least, from the kind of, you know, kind of poor relationship that was enjoyed with the Russians during the Bush administration - Heidi.

COLLINS: What about the fact that Putin isn't actually in Moscow while Hillary is?

CHANCE: Well, State Department officials are telling us they're not really reading anything into that. Prime Minister Putin is not the president anymore, he's the prime minister.

COLLINS: Right.

CHANCE: He's on a long-scheduled visit to China, where he's been signing some multimillion dollar deals. But the fact is, everyone here believes that Vladimir Putin is the man who still runs Russia, still makes the key (OFF MIKE) and the main man is out of town.

COLLINS: All right. Very interesting. We'll keep our eye on that as we try to keep Matthew Chance up before this live shot goes down.

Matthew Chance, thanks so much, live from Moscow, Russia today.

Well, today is the day for the Senate Finance Committee. The panel will finally vote on its health care reform proposal. It's taken months of back and forth to even get to this point. This is the only proposal in Congress without the public option, but because of that, it has the best shot at bipartisan support. At a time when every penny counts for health care reform, the White House still isn't comfortable with putting caps on malpractice awards. But as Lisa Sylvester reports, congressional analysts are giving Tort reform supporters new ammunition.

(BEGIN VIDEOTAPE)

LISA SYLVESTER, CNN CORRESPONDENT (voice over): The Congressional Budget Office report agrees with what many Republicans have been arguing. Tort reform can lower the cost of health care. First, by reducing the amount doctors have to pay in medical malpractice insurance by as much as 10 percent. And second, by cutting down on unnecessary diagnostic tests and services, a practice known as defensive medicine.

Sally Pipes of the Pacific Research Institute, a free market think tank, says --

SALLY PIPES, PACIFIC RESEARCH INSTITUTE: We can see a saving, a reduction, in the federal deficit by $54 billion, which is a significant reduction in the deficit.

SYLVESTER: Some states have already implemented tort reform. Texas, for example, in 2003, capped damages from doctors to $250,000 and $500,000 from health care facilities. Plaintiffs can still seek economic damages for lost wages and medical expenses.

The American Trial Lawyers Association, representing lawyers who usually get a percentage of the damages awarded, is downplaying the CBO report, noting that it's only one-half of 1 percent of the nation's total health care spending.

Mike Papantonio is a lawyer and liberal radio talk show host.

MIKE PAPANTONIO, LAWYER & TALK SHOW HOST: The person who suffers is the person who goes to a hospital, has the wrong arm cut off, has the wrong leg cut off, and they say, I'm sorry, you have to go home. Under the new reform, you simply can't recover.

SYLVESTER: Senator Orrin Hatch, a strong proponent of malpractice reform, who requested the CBO study, said in a statement, quote, "I think that this is an important step in the right direction and these numbers show that this problem deserves more than lip service from policy makers."

(END VIDEOTAPE)

COLLINS: Lisa Sylvester reporting that.

President Obama favors a more limited approach, involving a $25 million grant program. He wants the state to use the money for positive programs to improve patient safety and cut down on frivolous lawsuits.

Checking our top stories now. The first criminal trial stemming from the financial crisis is about to get under way in New York. Two former hedge fund managers with Bear Stearns are charged with securities fraud in connection with the collapse of the investment bank. Prosecutors say Ralph Cioffi and Matthew Tannin painted a rosy picture of two portfolios for their investors even though they believed the funds were in danger. Both have pleaded not guilty.

A hearing into the drug overdose death of Anna Nicole Smith is set to begin in about two hours in Los Angeles. Her former lawyer and boyfriend, Howard K. Stern, and two doctors are accused of conspiring to illegally provide Smith with 44 different prescription drugs. All three have pleaded not guilty. The judge will decide if there is enough evidence to order the three to stand trial.

A long-planned ground offensive in Pakistan may soon be a go. Pakistani jets are hitting militant targets in south Waziristan. That could be an indication troops will soon follow. The area is a hornet's nest of militant activity near the Afghan border. Pakistan has seen four major terrorist attacks in recent days.

California preparing for the worst and hoping for the best, as a major storm heads their way.

(COMMERCIAL BREAK)

COLLINS: Northern California bracing for a nasty storm today with flooding a major concern. Most people will probably be keeping sandbags close by. They were handed out yesterday and went fast. The storm is expected to dump several inches of rain and slam the area with strong winds.

Rob Marciano standing by now in the severe weather center to talk about that.

Boy, that sounds horrendous. All kinds of rain and then really windy, too.

(WEATHER REPORT)

COLLINS: He came in through a window and left by the front door. Not a thief or a customer, only a wayward deer. It was in Georgia's Coney Island restaurant outside Detroit. Only a few minutes, nobody was hurt, everyone still wondering, though, how the deer made it there, since the nearest woods are several blocks away.

Oh, you can see how fast the people scatter? Yikes. Scary deer.

A daughter turns her mother in to police for her green thumb, but officers say it's the kind of plants she's accused of growing that could land her in trouble.

(COMMERCIAL BREAK)

COLLINS: In Michigan, a daughter turns her mom into police. She claims her mother is growing marijuana in their living room. Investigators say they found two large plants in 40-year-old Christine Conosolo's home. Conosolo says she only uses the pot for medical purposes to relieve back pain.

(BEGIN VIDEO CLIP)

CHRISTINE CONOSOLO, MOTHER: They've taken away, you know, what was to be my medicine, which forces me then to go out on the street and procure it, so you've actually added to the crime.

(END VIDEO CLIP)

COLLINS: When reporters asked her about her daughter turning her in, Conosolo says her daughter is obviously taking a stand for what she believes in, and she encourages that.

Meanwhile, charges cannot be filed against Conosolo until state lab analysts confirm that the plants are, in fact, marijuana.

No place to call home. That's the reality for some registered sex offenders in Georgia. It's because of a state law that restricts where they can live. But do these restrictions actually work?

Our Brooke Baldwin reports they may have unintended consequences.

(BEGIN VIDEOTAPE)

BROOKE BALDWIN, CNN CORRESPONDENT: For months a group of registered sex offenders had been living together in the woods in Georgia. The reason they were homeless, they say forced there as a result of the state's strict sex offender law.

Passed in 2006, Georgia's 16,000 sex offenders cannot live or work within 1,000 feet of a child care facility, church, school or area where minors congregates.

So you and essentially eight other men, eight other sex offenders are living in tents in the woods in Cobb County because it's difficult to find a compliant shelter?

MARQUE, CONVICTED SEX OFFENDER: Yes, ma'am because the thing about it does is with shelters there's -- they kind of sort of...

BALDWIN: There are kids...

MARQUE: ... with family and children there we can't stay there.

BALDWIN: Last October, Marque agreed to plead guilty to child molestation. He said he didn't touch the child but agreed to the plea in exchange for five years probation. In Cobb County where he's serving out his probation, finding a shelter that's affordable and in compliance with the law, Marque says, is next to impossible.

MARQUE: There's like a church or school like down every block.

BALDWIN: Republican state legislator David Ralston, a co-sponsor of the original bill, is a hardliner when it comes to sex offenders. DAVID RALSTON (R), GEORGIA STATE HOUSE: We didn't design this law with comfort and convenience in mind. We designed it with safety in mind.

BALDWIN: There are people who will watch this story and they'll hear about you and the fact that you're a registered sex offender and they say, "I have no sympathy."

MARQUE: I can understand formulating an opinion if you look at the surface but in this matter you have to look beyond the surface. And actually see the person for who they are.

BALDWIN: In more than 20 states there are residency restriction laws which regulate where sex offenders may live. Forensic psychologist Kevin Baldwin says there is no proof yet that laws that force sex offenders to live together away from everyone else leads to more crime but it does create instability.

KEVIN BALDWIN, THE HIGHLAND INSTITUTE, ATLANTA: What you've actually created is a nomadic group of destabilized offenders, and I don't think anyone can argue that that's good for public policy or safety.

BALDWIN: Marque is no longer living in the woods. Two weeks ago the sheriff told the group to go. Some found temporary shelter in a neighboring county. For now, this 30-year-old says he feels stuck.

Marque's priorities should be getting his life back on track; instead his focus, finding a bed at night.

MARQUE: The state can tell you where you can't live, but they can't tell you where you can.

Brooke Baldwin, CNN, Atlanta.

(END VIDEOTAPE)

COLLINS: A lot going on this morning. We've got our crews ready to bring it to you. I want to check in with our correspondents now. Our congressional correspondent Brianna Keilar up first -- hey Brianna.

BRIANNA KEILAR, CNN CONGRESSIONAL CORRESPONDENT: Hi Heidi, we're watching a key committee vote today on health care reform and we're watching to see if a lone Republican senator gives this Democratic plan her support. I'll have more at the top of the hour.

CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: I'm Christine Romans in New York. And we are counting the jobs saved by your stimulus money, tens of billions of dollars to the states. We're learning how they spend them and just where those jobs have been saved. I'll have that at the top of the hour.

SUSAN LISOVICZ, CNN CORRESPONDENT: And I'm Susan Lisovicz at the New York Stock Exchange, where the recovery calls are getting louder. A new survey shows most economists say the recession is over. It just doesn't feel that way to most of us, at least not yet. Heidi, more on that in the next half hour.

COLLINS: Yes, got that right. All right guys, thank you.

Also, in Hong Kong, girls as young as 13 selling their time and their bodies for extra cash. We'll tell you about efforts to save them from this kind of lifestyle.

(COMMERCIAL BREAK)

COLLINS: Heavy metal on the move in Iraq. It's a CNN exclusive. In order to embed with U.S. Special Forces, though, CNN did have to agree not to reveal the identities of either the U.S. or Iraqi Special Force Operatives. The military says it's for their protection and could be identified by enemy forces around the world.

Our Cal Perry has this report now on a raid targeting more than a dozen alleged members of al Qaeda.

(BEGIN VIDEOTAPE)

CAL PERRY, CNN INTERNATIONAL CORRESPONDENT (voice-over): The Green Berets, one of America's elite military units prepare for a mission in Hila, Iraq in the middle of what used to be known as the "triangle of death."

Heavy metal blares while they gear up but these highly trained soldiers who are used to being out in front will take a back seat. Iraqi Special Forces are spearheading the mission.

UNIDENTIFIED MALE: Obviously they have taken the lead now. It's their show. We are definitely to a point where it is train the trainer and not just train the troops.

PERRY: The Iraqi Special Forces get their own briefing before they too mount up and head out. Their soundtrack distinctly Iraqi as the team rolls through the town of Hila. But it doesn't all go smoothly in a dramatic sign of the distrust between different parts of the Iraq's Security Forces the soldiers confiscate cell phones from the local police in case they tip off the targets.

Off the paved roads clouds of sand obscure the soldier's view and radios crackle as they close in. Then in a flash, they crash the target building.

Emergency response brigade, basically Iraqi Special Forces backed by United States Special Forces Green Berets have detained who they believe to be alleged members of al Qaeda. You can see them here; four individuals who have warrants against them. They also found weapons.

The team checks names and I.D. cards against the names in the judge's warrants. Later the U.S. military tells us the individuals detained are suspected of involvement with an al Qaeda cell operating in this volatile province. They are driven away to be detained not in a U.S. Camp but in an Iraqi prison.

Cal Perry, embedded with U.S. and Iraqi Special Forces in Hila, Iraq.

(END VIDEOTAPE)