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Northwest Pilots Lost Track of Time; Reality Check on the Public Option; 30 Children Killed on Bus in Baghdad; Upgrading the Power Grid and Building Plug-in Hybrids; A Parent's Guide to H1N1

Aired October 27, 2009 - 10:00   ET

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

HEIDI COLLINS, CNN ANCHOR: Laptops in the cockpit: They are necessary for pilots doing their preflight checks but two Northwest pilots were using theirs while in flight when they overshot the airport in Minneapolis by more than 100 miles. That's what federal investigators are saying after interviewing the pilots aboard a Northwest Airlines flight that missed that airport last week. They also say the pilots said they just lost track of time while checking their schedules. Both are suspended while the investigation is ongoing.

So how did the pilots seem to tune out what was going on around them? CNN's Deborah Feyerick took a turn in a flight simulator to find out how easy it is for things to go wrong.

(BEGIN VIDEOTAPE)

DEBORAH FEYERICK, CNN CORRESPONDENT (voice-over): The plane simulator we're in models a four-seat Cessna. Significantly smaller than the Airbus A-320. But the control panels are similar.

(on camera): How is a pilot alerted that it's time to land? What do they see? What are they -- what are the indicators?

VINCENT DRISCOLL, FLIGHT INSTRUCTOR, VAUGHN COLLEGE: Well, you're not alerted. And nobody is going to say to you it's time for you to land.

FEYERICK (voice-over): Vincent Driscoll trains pilots at the Vaughn College of Aeronautics across New York's LaGuardia Airport.

(on camera): Is it easy for a pilot to get distracted, to sort of become involved, to essentially stop flying the plane?

DRISCOLL: Planes can distract. Weather can distract. A mechanical problem on board the airplane can distract you.

FEYERICK (voice-over): In the case of Northwest Flight 188 it was not turbulence or heavy cloud cover. The distraction appears to have been laptop computers both pilots were using, they say, to check new crew schedules in place as a result of the Northwest/Delta merger.

(on camera): When you're flying, how often are you -- is somebody communicating to you when you're up in the air?

DRISCOLL: You're responsible for -- with your own navigation. OK? The ATC, what they're doing is monitoring you and other aircraft around you. They won't navigate for you. When it's busy they expect you to be on certain airways.

FEYERICK (voice-over): ATC or air traffic control anxiously tried reaching the pilots for more than an hour and 15 minutes. That's roughly 30 percent of the Northwest Flight from San Diego to Minneapolis. An extremely long time to maintain radio silence especially since controllers alert pilots to switch radio frequencies roughly every 10 to 15 minutes as the plane crosses into new zones or sectors.

DRISCOLL: They'll say, OK, radio contact identification and you go on your way. And when you get to the end of his sector he's going to hand you over to another sector.

FEYERICK: According to the NTSB the pilots say they heard radio conversation but did not specifically listen to what was being said.

(on camera): For a plane to overshoot an airport, does that happen a lot? We're talking 150 miles. We're talking 10, 15 minutes maybe?

DRISCOLL: It seems like a lot. But you see 10 to 15 minutes and you talk about 150 nautical miles, it's really not in terms of flying.

FEYERICK (voice-over): Driscoll, a former pilot, says the cockpit is generally quiet though some busier sectors have more radio chatter. Also it's easy to tune into the wrong frequency by a single digit.

(on camera): What's the lesson then? It's just that it's easy to happen?

DRISCOLL: We're human beings and things happen.

(END VIDEOTAPE)

COLLINS: Deborah Feyerick joining us now live from New York with a little bit more on this.

So, Deb, overshooting an airport, obviously, not exactly the same as like missing an exit on the highway when we're driving our cars. It can be a bigger problem here.

FEYERICK: Absolutely. We're talking about the situation awareness that the pilots who were in the cockpit didn't even listen to what was being said to people frantically trying to communicate with them on the ground. That should never be the situation.

Now when you and I are driving clearly, we may see a sign wiz by us because we're thinking about something else. In the air that is not supposed to happen. And that's why you have a series of things in place, for example you have people on the ground who are always trying to reach you every 10 to 15 minutes so that you are in communication.

The fact that they were not talking to these folks on the ground changing their frequencies as they should have like 10 times in the space of time we're talking about.

COLLINS: Yes.

FEYERICK: That's what the real issue is.

COLLINS: Yes. And when you're talking about SA, I mean, you're also talking about at least when you're coming down that close to an airport, this idea of sterile cockpit and what should be going on inside that cockpit which does not include being on a computer.

FEYERICK: Well, that's exactly right. There -- the stakes are really high. You know when you hear -- well, you hear that gentleman say well, we're human beings. That's very true. But these are human beings who are in the air, who have 150 people in the back of the plane, and where something that goes wrong could be catastrophic and so that's the big issue.

Plus, this was a direct violation of company policy using those laptops in the flight deck. So that's being looked at as well.

COLLINS: All right. Very good. Deb Feyerick following the story for us. Thank you, Deb.

In fact, for much more on the way Northwest Airlines flight including what the airline is offering the passengers in all of this, turn to CNN's newly redesigned Web site. The number one online source of news just got better. You can check it out at CNN.com.

On Capitol Hill today, it's all about two words. Public option. Senate majority leader Harry Reid announced he will add a government plan to health care reform but that states will have the choice to opt out of it. The move rallies liberal Democrats but may further alienate moderate members of both parties.

And even some of the people who support this public option may be surprised by its many limits.

We want to break this all down for you. CNN's Jim Acosta has this reality check.

(BEGIN VIDEOTAPE)

JIM ACOSTA, CNN CORRESPONDENT (voice-over): For Democrats, it's a gamble. So it's fitting that Majority Leader Harry Reid from Nevada would roll the dice and announce the Senate's version of health care reform will include a public option.

SEN. HARRY REID (D-NV), MAJORITY LEADER: The public option is not a silver bullet. I believe it's an important way to ensure competition and to level the playing field.

ACOSTA: Even though states would be allowed to opt out of the government insurance program for the uninsured, it's a calculated risk as Democrats don't have a lock on the 60 votes needed to break a filibuster.

SEN. CHARLES SCHUMER (D), NEW YORK: We're close. We're not there yet. But we're making good progress.

ACOSTA: Liberals did not give Democrats much of a choice but protests like this musical number that broke out at a conference for insurance companies. There are even ads aimed at the president himself.

BEN KATZ, VOLUNTEER COORDINATOR: You campaigned on a public health insurance option. We worked hard for it. We worked hard for you.

ACOSTA: The fact is President Obama rarely talked about a public option during the campaign.

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: I want to immediately provide cost relief. Make sure that people who don't have a coverage have coverage. And provide this option, this government option, that people can buy into.

ACOSTA: To this day the president has not demanded it in part because Republicans may stand united against it.

SEN. JOHN CORNYN (R), TEXAS: As the public begins to understand that the public option is really a Trojan horse which is going to lead to a single-payer or government-run system, I don't think they're going to be for it.

SEN. RON WYDEN (D), OREGON: One of the reasons it's so important to get the fact out is I think the American people have been misled about the public option.

ACOSTA: Oregon Democrat Ron Wyden points out people with insurance through their employer would be blocked from accessing the public option. That it's really a program for the uninsured.

WYDEN: When I was having my town meetings, people would stand up at rallies and say public option or bust, and then I would say, folks, I really appreciate your activism. Are you aware that the way these public option bills are written more than 90 percent of you wouldn't even get to choose them? And people were practically falling out of the bleachers.

(END VIDEOTAPE)

COLLINS: It's a really good point. Jim Acosta joining us now from Washington, D.C. with more on this.

So, Jim, regardless of all of the questions that I think people at home still have about all of this.

ACOSTA: Right.

COLLINS: What happens logistically if they lose Olympia Snowe in this? Can the Democrats still get their 60 votes?

ACOSTA: Well, that's the big question. You heard Olympia Snowe say yesterday evening that she's not a big fan of this opt out public option. She would rather see a trigger in there. And so then it becomes very important for Harry Reid to line up all 60 senators who caucus with the Democrats.

That includes people like Joe Lieberman who has been a wild card for the Democratic Party for several years now. People like Roland Burris. Folks are wondering what Roland Burris will do now all of a sudden now that Olympia Snowe may be out of the picture.

So this is going to be very difficult. And people are asked -- Democrats are asking the question, is this really worth it, is this public option really worth it when you consider all of the limits that we pointed out in that story, Heidi.

COLLINS: Yes. It was a well done piece. Just quickly, Jim, is there any more word on how -- if we get to the point where states will be able to opt out of this public option, how that will look? How that will work? And how the states will decide which ones are in and which ones are out?

ACOSTA: Well, from what I understand from talking to Senator Reid's office, that piece of this legislation is still in the works. So it's still being hammered out. But essentially this will be, you know, up to the states to decide whether or not they want to have this public option.

And just to give you a real life example of all of this, down in Virginia they're having a very important governor's race right now. A state that Barack Obama won during the national election last November. And both candidates in that race, both the Democrat and the Republican, have said they would rather opt out of the public option. Neither candidate in that race likes the public option, Heidi.

COLLINS: Yes. Interesting. All right. Well, Jim Acosta, we sure do appreciate it. In fact, we are talking about the public option on our blog this morning. Our question for you, what do you think about giving states the right to participate or not? This opt out plan.

You can go to CNN.com/heidi and post your comments there and then I'll read some of them a little bit later in the show.

A group opposed to more government involvement in health care is back on the road. The Tea Party Express pulls into three Nevada towns today as part of its 19-day, 38-city national tour. With the midterm elections just over a year away, a spokesman says the group is putting Congress on warning and not just Democrats. The tea party group wants less taxation and less government spending.

We are learning new details about two car bombings in Baghdad that killed 160 people. We now know 30 of those victims were children on a bus. And there is also a claim of responsibility in the attack.

CNN's Mohammed Jamjoom is joining us now live from Baghdad.

So, Mohammed, we did get some of this new very telling video about this attack this morning. MOHAMMED JAMJOOM, CNN CORRESPONDENT: That's right, Heidi. It's the Islamic State of Iraq, that's the umbrella group for al Qaeda in Iraq that claimed responsibility.

This is dramatic new video just released today. You see the truck bomb passing through a security checkpoint, goes down the road, around this roundabout between the ministries, and then it explodes.

It's absolutely shocking to see this. I can tell you we were at the scene of these blasts just a few hours after they occurred. We saw the massive devastation that these blasts caused but to see this now, this video really puts it in perspective. And you have to remember, this is just the first of two blasts - Heidi.

COLLINS: And while all of this is going on, Mohammed, we are hearing of course that political blame game ratchet up.

JAMJOOM: That's right, Heidi. Right now it's a season of politics. The prospect of national elections in January whether they are delayed or not. The fact is people are campaigning. Nouri al- Maliki, Iraq's prime minister, has been campaigning on a platform of increased national security.

He says that you're safer with his government. There were already attacks in the same government complex just two months ago. Now it happens again. People are confused. They are outraged as to why this keeps happening and they are very upset with the government right now are just in the throws of blaming each other trying to figure out how this happened. Heidi?

COLLINS: All right. We'll be watching. Certainly. Mohammed Jamjoom, live in Baghdad this morning. Thank you.

Another high level meeting ahead for President Obama as he tries to decide on a new strategy for Afghanistan. CNN has learned the Joint Chiefs of Staff are expected to offer their views during a meeting at the White House. That will take place on Friday.

We also know more now about one of the helicopter crashes in Afghanistan. Three choppers went down in southern and western Afghanistan. Fourteen Americans were killed. Among them, three drug enforcement agents.

A U.S. diplomat in Afghanistan has resigned in protest of the war. Matthew (INAUDIBLE) is a former marine who served in Iraq and was with the State Department in Afghanistan. He said he lost understanding and confidence in the United States mission there. He also said he thought the American presence was fueling the insurgency.

Hoe was offered a promotion to join the staff of special envoy to the region, Richard Holbrooke, but he turned that down.

Quickly looking at some of those live pictures once again from Kennedy Space Center. We are awaiting the launch of the world's largest rocket, the Ares. And we've been watching some big delays. That's for sure. This whole thing began at 8:00 a.m. this morning. The window goes until noon.

We are waiting to learn more about the current weather situation. A lot of wind out there today. Want to make sure it's safe before they go. We'll continue to watch.

The president and his men are talking clear energy today from a solar power complex to the halls of Congress. And Rob Marciano is talking storms.

Hey, Rob.

ROB MARCIANO, AMS METEOROLOGIST: We're talking storms. We're talking that rocket. Let's light that candle. It's been a frustrating morning on that account. If you're trying to travel via a regular old airplane, you may be having some issues as well. So we'll run down the two storms that are affecting the U.S. when the CNN NEWSROOM comes right back.

ANNOUNCER: CNN NEWSROOM brought to you by...

(COMMERCIAL BREAK)

COLLINS: President Obama is heading for Arcadia, Florida this hour. The country's second solar power station is there. He's expected to announce a multimillion dollar investment to update the power grids with clean, renewable energy sources.

The $3.4 billion investment will help pay for millions of smart meters which are designed to change the way you communicate with your power company.

CNNMoney.com's Poppy Harlow is in New York.

Poppy, do I want to communicate with my power company?

(LAUGHTER)

POPPY HARLOW, CNNMONEY.COM: You do if it will save you money, Heidi.

COLLINS: True.

HARLOW: I mean what happens now is if your power goes out, you've got to call the company, and wait on hold. We love doing that. If you had a smart meter they would know when your power is out. It's all about getting faster, conserving energy, helping avoid blackouts.

The Obama administration putting some of that stimulus money to work announcing this morning $3.4 billion in those -- in that government spending. What this is, is it's part of that larger government effort to update the aging power grid with digital technology.

So what you're seeing is utility companies also kicking in here nearly $5 billion in matching funds. What you're going to get, the administration tells us, 18 million of these so-called smart meters in American homes. That's going to happen within the next three years. It's going to be in total about 13 percent of these electricity meters nationwide.

The whole goal is you can see how much energy you're using as you're using it. It's more efficient to run your dishwasher at different times of the day. It's going to cost you more at some times than others. This is going to show you about that.

The other money of that -- part of that $3.4 billion is going into monitoring and upgrading the electric grid. What the administration says is that these projects as we always hear, Heidi, will save or create -- that's key -- there tens of thousands of new jobs. So we'll be watching. But some of that money going to work starting today. That's what the president is talking about.

COLLINS: All right. Well, what about the vice president? He's also focusing on energy...

HARLOW: Sure.

COLLINS: ... and job creation today, too, right?

HARLOW: Yes, and the vice president is in his home state. He's in Delaware this hour. He's making an announcement at an old GM plant, announcing the different automaker, the luxury automaker, Fisker Automotive, that makes that car you see there? They're going to build it. A plug-in hybrid at this former GM plant.

The funding for it, again, coming from the government. A $528 million Energy Department grant for that project. Again, Heidi, all about these jobs. You talk about stimulus, you talk about jobs. They say it could create 2,000 factory jobs in Delaware.

The company says on top of that, as sort of the ripple effect, you're going to get 3,000 vendor and supplier jobs by 2014 as their production ramps up. All of this to meet the administration's goal of creating and putting one million plug-in hybrids on the road by 2015.

Heidi, that's a lofty goal amidst of a deep recession. The car you just saw, price tag nearly 40,000 bucks after tax credits. So they'll build Nina and we'll see if people will come. But the president and the vice president on the green energy path today that's for sure.

COLLINS: Yes. All right. Poppy Harlow, sure do appreciate it. Thank you.

And right now three Cabinet members -- secretaries of energy, interior, and transportation -- are before a Senate committee plugging the American Power Act. Also there, the administrators of the Environmental Protection Agency and the Federal Regulatory Commission.

Supporters say the power act is the heart of the president's policies to create more energy efficient buildings, cars and products and of course jobs. A key provision in the Power Act is the cap and trade program. Under the proposal the government would limit the amount of greenhouse gas emissions from factories or power plants. Companies exceeding the limit would either pay a fine or pay money to other companies producing smaller amounts of greenhouse gases.

Supporters say the program would create jobs. Critics say the plan would lead to higher energy costs. A new CNN Opinion Research Corporation poll asked hundreds of Americans what they thought of the cap and trade program. 60 percent said they favor it, 37 percent oppose it.

Rob Marciano joining us now from the Severe Weather Center talking about these storms.

MARCIANO: Yes, you know what just popped up, Heidi, is a...

COLLINS: What's that?

MARCIANO: Tornado warning. So I want to get right to that.

COLLINS: OK.

(WEATHER REPORT)

MARCIANO: We're also keeping an eye on this thing. Cool looking rocket. Just light that candle. Come on. Just get her going. Get the thing up. I want to see her fly. We have some weather issues, some clouds at higher elevations, higher altitudes that are prohibiting that at this hour.

COLLINS: Yes.

MARCIANO: But they probably got their astronauts up there and T38s checking or flying around doing some weather recon and we'll see if they give us more of a green light as we go through time.

COLLINS: Yes. We'll continue to watch that. Got about an hour and a half left until that window expires at noon today from the Kennedy Space Center.

Rob, thank you for that.

MARCIANO: You bet.

COLLINS: We're also watching Afghanistan this morning. Just gotten some news here now. Apparently another roadside bomb attack has killed eight U.S. service members and an Afghanistan civilian working with NATO troops. This has happened in southern Afghanistan.

We're trying to get more details. But this has been a very, very deadly month for American forces in Afghanistan. Once again, roadside bombs killed eight U.S. service members including an Afghan civilian that was working with the NATO troops there in southern Afghanistan. We'll continue to follow that story as well. We also have new details for you on the case of Jane Doe, the teenager who turned up in New York with apparent memory loss. Well just days after a CNN viewer identified the 18-year-old, a sheriff back home in Washington state now says she left everything behind.

Police aren't sure how Casey Peterson traveled across the country. Her father says she has suffered occasional memory lapses before.

California investigators checking social networking sites like Facebook and YouTube for evidence in an alleged gang rape. Two suspects are in custody right now. And police say as many as 15 people crowded around while the crime was being committed.

None of them helped the victim or called police. A 15-year-old victim is in the hospital now in stable condition.

Homestead, Florida, a mom is arrested and accused of drunk driving. And that's not the worst of it. Police say 24-year-old Joanne Martinez had passed out in her running car with three children in the back. Police say the children were crying because they were hungry. Martinez remains in jail. The children are staying with their grandmother.

A parents' guide to the H1N1 flu virus. What you need to know to protect your child.

(COMMERCIAL BREAK)

COLLINS: Does your child have the H1N1 flu virus? Well, a lot of kids do and a lot of them have been to the doctor. So what if your doctor tells you your child will be OK but your intuition tells you something else?

Senior medical correspondent Elizabeth Cohen has some tips now for parents.

ELIZABETH COHEN, CNN SENIOR MEDICAL CORRESPONDENT: Heidi, I've been on the phone with parents whose children had H1N1, they went to the doctor, they were told they were fine and sent home. They went back to the doctor. Were told again they were fine and sent home. But the parents were vigilant and they knew that their children weren't fine.

In fact, these children ended up in intensive care and almost dying. So what kinds of signs were these parents looking out for? Let's go over the list. The list of signs that tell you that your child's H1N1 has taken a turn for the worst.

If your child has a fever that isn't responding to drugs like Tylenol or Advil, that's a bad sign. If your child can't keep liquids down, has fast breathing, has blue skin, for example, around the toes or the fingers or has numbness, that's a sign that they need immediate medical attention and go back to the doctor even if you've already been several times.

If your child gets better and then worse, that's also a sign that the H1N1 may be getting out of control.

Now I want to emphasize here that the vast majority of children who have H1N1 are miserable for a few days and then recover. But a small number don't. And that's why you need to be vigilant about these signs.

You also need to be your child's advocate. You need to be empowered on behalf of your child. That's according to Dr. Gregory Poland (ph), who's an infectious disease expert at the Mayo Clinic. He says you know your child best. If you see something isn't right, go back to the doctor, no matter how many times you've been there before. Heidi?

COLLINS: All right, Elizabeth. Thank you.

The debate over health care reform. The public option is now in, but does that help or hurt the chances of getting health care reform passed?

(COMMERCIAL BREAK)

ANNOUNCER: Live in the CNN NEWSROOM, Heidi Collins.

COLLINS: New details now. Roadside bombs killed eight U.S. service members in southern Afghanistan today. An Afghan civilian working with NATO troops was also killed in the attack.

CNN's Barbara Starr is joining us now live from the Pentagon. Boy, Barbara, his has made it the deadliest month so far in the entire war for U.S. forces.

BARBARA STARR, CNN PENTAGON CORRESPONDENT: It is, Heidi. It's really just very tragic, terrible news. We know that military families are now in fact being notified about the latest news.

Eight U.S. troops killed today in southern Afghanistan in a series of IED attacks, improvised explosive devices. U.S. officials are telling us that their current information, the initial reports are that at least seven military personnel killed in one attack. Additionally, another military member killed in another attack.

The first reports -- and we emphasize, first reports -- is that the troops were in armored vehicles when this happened. The military is describing these as "complex attacks." I have to tell you, typically when they use that word "complex attacks," in the past it has meant there's also been small arms fire involved and other types of combat ambush-type activity. That's kind of a code word, if you will, that the military uses.

Of course this, comes one day after 14 U.S. personnel, 11 military and three Drug Enforcement Administration agents were killed in helicopter crashes yesterday in Afghanistan, making it in fact the deadliest month of the war. All coming as President Obama tries to make that decision about what to do next.

COLLINS: Yes. And three days away on Friday from the last meeting, at least that we know of at this point, the sixth and final with the Joint Chiefs of Staff coming to Washington to talk more about Afghanistan strategy.

We'll watch that closely alongside you, our Pentagon correspondent, Barbara Starr, this morning.

On Capitol Hill now, the debate over health care reform a bit more divisive today. That's because the Senate's leading Democrat has added a so-called public option to the mix, and to some moderates even in his own party, it could be a deal breaker. CNN congressional correspondent Dana Bash explains.

(BEGIN VIDEOTAPE)

DANA BASH, CNN CONGRESSIONAL CORRESPONDENT (voice-over): For the Senate Democratic leader from Nevada, a Las Vegas-style gamble.

SEN. HARRY REID (D-NV), MAJORITY LEADER: A public option can achieve the goal of bringing meaningful reform to our broken system.

BASH: Senate Majority Leader Harry Reid announced the Senate Democrats' health care bill will include a public option that allows states to opt out by the year 2014, rolling the dice that conservative Democrats wary of a government-run health care plan can be persuaded if states can choose not to participate. Democratic sources admit Reid does not yet have 60 votes locked down to bring this to the Senate floor.

When we asked, Reid said this:

REID: I believe we clearly will have the support of my caucus to move to this bill and start legislating.

BASH: One senator Reid clearly doesn't have support from is Olympia Snowe, the only Republican to back the Democratic proposal. She quickly said she is -- quote -- "deeply disappointed with the majority leader's decision to include a public option as the focus of the legislation."

Several Democratic sources say the president and top aides are concerned about alienating Snowe and risking the chance to call health care bipartisan. And Reid?

REID: We will have to move forward on this. And there will come a time, I hope, where she sees the wisdom of supporting a health care bill.

BASH: Given the uncertainty of the votes, pushing this now is a risky strategy.

But multiple Democratic sources tell CNN part of Reid's strategy is to show an increasingly frustrated Democratic base he's trying to pass a key priority -- a public option. And for Reid, the politics are personal. He's got a tough re-election battle, and liberals he needs are already running this ad.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: I'm watching to see if Harry Reid is strong and effective enough as a Leader to pass a public health insurance option.

(END VIDEO CLIP)

BASH (on camera): Privately, one administration official told me that Reid's move is, quote, "dangerous," but publicly, the White House is backing Reid's strategy with the hopes that he knows where his caucus is, and he's right that the votes are there.

Dana Bash, CNN, Capitol Hill.

(END VIDEOTAPE)

COLLINS: A new analysis of America's health care system seems to support the idea it's time for a change. Our Stephanie Elam has been going over the numbers in New York. What numbers are we talking about here, Stephanie?

STEPHANIE ELAM, CNN BUSINESS CORRESPONDENT: We are talking about wasteful numbers when it comes to the U.S. health care system, Heidi. A new report out says that the U.S. health care system wastes somewhere between $600 and $800 -- $680 and $800 billion a year. Just on waste. This is according to a Thomson Reuters report.

And let's look at some of the largest drivers of waste, according to the study. Starting off with unnecessary care. You see, it can cost up to $325 billion a year in waste. That's 40 percent of the waste we're talking here. Fraud. Fraudulent claims, kickbacks with unnecessary care like prescribing excessive lab tests, that sort of thing. Those fraudulent claims, 19 percent of waste.

And then the administrative inefficiency. And we've seen that so many times where you get paperwork done in one place and get you've got to get it done by another doctor. Maybe you're working with two different practitioners. Well, that also adds up to about 17 percent of the waste there.

Medical mistakes, that's a huge issue that doctors are making mistakes with things. That could also lead to 12 percent of the waste.

And then preventable conditions. Let's say you have a situation like diabetes, but you neglect it the whole time, and you don't deal with it and end up hospitalized. That's also something they're talking about here. That's 6 percent of waste.

And then the lack of care of coordination -- also 6 percent of waste there. That's poor communication and duplication. If you've got two doctors who you're working with, and they don't know that one has already taken your blood to do a whole series of tests, and then another doctor will take blood and do a whole series of tests. That sort of thing. If we could actually take a look at these numbers, we might identify good places to make change. COLLINS: Yes. The rule for me is always you can stick me with that needle just one time. You all get together and talk about what tests you want to do...

ELAM: Have a meeting, come together...

COLLINS: ... and then poke me with that nasty needle once. So, listen, when we're talking about delivery of care and this waste that often takes place in health care reform, what exactly does that mean? Are we saying there's enough money right now to cover everybody if only we could make things more efficient?

ELAM: That's what Thomson Reuters is trying to point out here. They say the reason they put together this whole report is to show how much money is being wasted and how much money is there. They are saying that this amounts to one-third of the U.S. health care costs that are spent every year. So, if we could just focus on getting those costs in order, it will make this whole health care debate a lot easier to stomach. Of course, now once you identify the problems, the whole other situation to go ahead and find ways to rectify these problems.

COLLINS: Several situations. Yes.

ELAM: And there's a lot of situations here. Pointing them out and showing how much of the pie each of these things are costing us. And I think unnecessary care and fraud definitely top the list.

COLLINS: Yes. All right. Stephanie Elam, fascinating. We'll check back with you later on.

Meanwhile, we are talking about that public option on our blog this morning. We actually asked you if you think it's a good idea or not that states could have the option to "opt out" if you will of this public option that is being worked into the plan right now. And they'll decide for themselves across different states. So, depends on where you live, you could be in, you could be out.

In fact, here's what some of you said. First, from Patricia: "I thought I lived in the United States. The Civil War was fought a long time ago. The red state-blue state thing would not created a sense of everyone in the same boat. If there is to be a public option, it should be open to anyone that needs it."

Next, from Ilsa. "Letting a governor or legislature deny a choice is unconscionable. Would this not give incentive to the needy in one state to move to another for what should be a national right?"

And finally, from Bert. "There is very little confidence in any government-run program. Now, both state and federal governments will have a hand in the health of our loved ones."

Well, not everyone can -- we'll bring more of those comments to you coming up later here in the program. Once again, that question is, do you think it's a good idea for states to be able to opt out of this public option program that's being talked about right now? CNN.com/heidi. We'll look at some more of your comments a little bit later.

Not even death can keep some of your favorite stars from big paydays. So, who's the biggest earner from beyond the grave? We'll tell you in a moment.

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COLLINS: One last chance to see Michael Jackson perform on stage. Today, the new movie "This Is It" opens in select theaters. It shows rehearsals for the comeback Jackson was planning. He died in June before he could do his London concerts. Sony Entertainment is slamming a recent report on the movie. A tabloid claimed Jackson's father questioned some of the authenticity. But the producers say no body doubles were used to finish the movie.

Fans will buy Jackson's records for years to come. But he's not the only dead celebrity still bringing in the bucks. Corinne Winter looks at the stars making a good living even in death.

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STEVE MCQUEEN, DEAD ACTOR: You're in my movie and on my track.

CORINNE WINTER, CNN CORRESPONDENT (voice-over): He's been dead for decades. But late screen legend Steve McQueen still finds work beyond the grave, inserted into ad campaigns like this one.

Dead celebrities making a living on their iconic images. There's a market worth hundreds of millions a year, says David Reader of Greenlight. His company advised heirs of celebrity estates on licensing and marketing opportunities.

DAVID READER, GREENLIGHT: This is one we just finished last month, which is using Andy Warhol's personality for Citibank.

WINTER: Greenlight has brokered deals for clients like Andy Warhol, Steve McQueen and Albert Einstein. The latest edition?

READER: Bruce Lee, who we're excited to take it and market globally.

WINTER: A concept can start with something as simple as a classic photo, like this one of McQueen from a 1960s movie set.

(on camera): If I wanted to license something like this, how much would it cost?

READER: It could cost you in the six figures, certainly.

WINTER (voice-over): Greenlight isn't the only company in the business. From artwork to alcohol, even figurines. CMG Corporation has negotiated lucrative contracts for the estates of Marilyn Monroe, Betti Page...

UNIDENTIFIED FEMALE: We're talking big numbers...

WINTER: ... and legendary rebel James Dean.

UNIDENTIFIED FEMALE: He's one of our top clients.

WINTER: When it comes to the king of posthumous celebrity earners, that crown belongs to Elvis, who dominates Forbes' annual list of top earning dead celebrities.

UNIDENTIFIED MALE: Elvis will generate in 2009 between $50 million and $60 million.

WINTER: Numbers that could easily triple next year with the upcoming launch of an Elvis Cirque Du Soleil show in Vegas, says billionaire entrepreneuer Robert Sillerman (ph). His company, CKX, owns 85 percent of the rights to Elvis. But Sillerman says Elvis could be dethroned with the late Michael Jackson's huge earning potential.

ROBERT SILLERMAN, OWNER, CKX: 2010 is going to be interesting. It will be the first time that there really is a horse race with Elvis.

WINTER: But Greenlight's David Reader says an estate's true test lies in a star's staying power. How bankable their image remains over time. Like this twentieth-century pioneer, whose persona still resonates with consumers, from coffee lovers to Kobe Einstein.

Corinne Winter, CNN, Hollywood.

(END VIDEOTAPE)

COLLINS: A special "AMERICAN MORNING" series looks at the legend of Michael Jackson and how the estate is cashing in on his death. Check it out all week long on "AMERICAN MORNING."

NASA still has a window to set up -- to send up -- its newest kind of rocket. It's been delayed several times over weather and other problems this morning, but we're keeping our eyes on the launch pad for you. We're back in a moment.

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COLLINS: This morning, we have new measures of the economy. Home prices have risen for the fourth straight month, suggesting that the rebound is still underway. According to the S&P Case-Shiller Index, prices in 20 major cities climbed 1 percent from July to August. The bad news: August prices are still down nearly 11.1 percent from one year ago.

Turning now to your wallet. Consumer confidence takes a surprising hit and dips even further in October. The bleak finding, Americans are as worried about the economy's current state as they've been in nearly three decades. The reason why that's important: consumer spending is essential to economic recovery.

Head over to Susan Lisovicz now for more on those housing numbers. Susan, the month-to-month numbers are good, but then the annual number paints a completely different picture. How should people be looking at this?

SUSAN LISOVICZ, CNN CORRESPONDENT: Well, I think that the headline number, no question about it, Heidi, is encouraging. This is the worst housing crisis since the 1930s. You know, the improvement realistically is going to be slow, painfully slow.

What we saw, Heidi, in August was prices in 17 of the 20 cities measured rose. The only exceptions were Cleveland, Charlotte, North Carolina, and Las Vegas. And as your personal portfolio manager, Heidi, I just wanted to tell you that Atlanta registered a 1 percent month-to-month rise. New York, half a percent.

The annual number that you referred to shows there's a long way to go because prices are at 2003 levels. But what happens is when you have four months of increases, it pairs those declines year over year, and that's probably realistically the only way it will happen. Slow. Very slow.

But it's enough. It's enough to prop up the market today. That was something that helped stocks at the opening bell, and right now you have a mixed bag because we fell back a bit after that consumer confidence number came out. The Dow is up half a percent. The NASDAQ is down about a third of a percent, Heidi.

COLLINS: Yes, but back to the housing, if there is one area where the outlook is uncertain, it's got to be housing. A lot riding on the extension of the first-time home buyer tax credit we've been talking about.

LISOVICZ: No question about it. The housing market is fragile. It's vulnerable to setbacks. Unemployment at a 26-year high.

That's why the Fed is keeping a lid on mortgage rates and why there is such discussion about extension of this tax credit. This is -- the government is propping up the housing market. It has bipartisan support. The Senate could vote on it this week.

Heidi, it's not as generous as the House version. Quick headlines from that. The Senate version would extend the tax credit to the end of March. The house would extend it to the end of June and to all home buyers. And the reason why there's such interest in this is because, again, unemployment is expected to rise. And when unemployment rises, so do foreclosures. Heidi.

COLLINS: That's for sure. That's what we've seen. All right. Susan Lisovicz, thank you.

Turning into one heck of a long countdown for NASA's latest launch. NASA is trying to send up the new Ares 1X rocket for an unmanned test flight. It's one of four, in fact. But weather and other problems have delayed it a few times now. NASA does plan to use this rocket to replace its aging shuttle fleet. The space agency has until noon to launch the Ares or wait for another day. We'll continue to watch it.

(COMMERCIAL BREAK) COLLINS: Let's take a moment now to go over to Rob Marciano before we say good-bye today. Talking about the Southeast storms because there's potential they could be affecting this rocket launch that we've been watching all morning long. Rob, what's the scoop now?

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TONY HARRIS, CNN ANCHOR: 11:19, Rob. (OFF MIKE)

ROB MARCIANO, AMS METEOROLOGIST: What's that?

HARRIS: 11:19.

MARCIANO: 11:19 is when it's going to start. OK. 11:19. I'll believe it when I see it.

(LAUGHTER)

MARCIANO: There it is. If we don't get 'er done by noon, we'll try again tomorrow. Thank you, Tony. Hopefully, we didn't hurt your camera over there.

COLLINS: Yes. It was originally a 90-minute delay, so it would have put us at about the 11:15 mark.

MARCIANO: Just like the airlines, you know? They say 90 minutes and it goes two hours.

COLLINS: All right. Well, they have to be safe obviously. We'll watch it. Rob Marciano, thank you.

I'm Heidi Collins. Thank you for watching, everybody. CNN NEWSROOM continues with Tony Harris.