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Health Reform at the Crossroads; Creating Jobs and Helping the Jobless; "It's Bernanke's Economy"; H1N1 Vaccine Recalled

Aired December 16, 2009 - 09:00   ET

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

JOHN ROBERTS, CNN ANCHOR: Meantime the news continues on CNN with Heidi Collins in the "CNN NEWSROOM."

Hi, Heidi.

HEIDI COLLINS, CNN ANCHOR: Hi, John. Hi, Kiran. That's right, good morning, everybody. A lot going on here in the CNN NEWSROOM today.

You know there is still a lot of ground to cover even though that finish line looks just a little bit closer. We're talking about health care reform, of course, and President Obama is urging Democratic senators there to reach a final deal on health care reform and reach it quick.

Personal texts on company hours. Do you ever do that? Well, are they for your eyes only or can everybody else see them? We'll talk about that and the Supreme Court will be making some decisions on that front.

Also, look at this now. An alleged cover-up in a coal town. The case of an immigrant's death is reopened. And now two teens, three police officers, face serious federal charges.

Good morning. I'm Heidi Collins. It is Wednesday, December 16th, and you are in the CNN NEWSROOM.

Health care reform at the crossroads. Even the president's fellow Democrats don't know which path to take. Some are rebelling against the Medicare buy-in, some are split over abortion funding. And all are feeling the heat as Senate leaders try to wrangle the 60 votes needed to push it through.

CNN White House correspondent Dan Lothian, first up this morning with the very latest.

Dan, good morning. What did he hope to accomplish in this meeting?

DAN LOTHIAN, CNN WHITE HOUSE CORRESPONDENT: Well, the president really is pushing pressure on congressional leaders. A lot is at stake here for this White House. The president wants and some would say that he really needs to get his top domestic agenda accomplished here and that is health care reform.

And so that's why you're seeing this big push to make sure that Democrats can get a bill hammered out. The president saying that they're on the precipice of an achievement, but both the White House and congressional leaders do admit that there's still a lot of work that needs to be done.

Having said that, the administration is very pleased that they at least have something that will help to insure some 30 million Americans, that the plan is deficit neutral, that it does have some of these provisions that will cut down on some of the abuses that this administration says has been there with health care.

The president also, in order to really put some pressure here, is laying it out in very cheer terms what will happen to the American people if they don't get health care reform.

(BEGIN VIDEO CLIP)

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: If we don't get this done, your premiums are guaranteed to go up. If this does not get done, more employers are going to drop coverage because they can't afford it. If this does not get done, it is guaranteed that Medicare and Medicaid will blow a hole through our budget.

(END VIDEO CLIP)

LOTHIAN: You know, as you pointed out, they really need the 60 Democrats on this because Republicans are threatening they'll filibuster so to overcome that, they need all Democrats to be on board with this.

The president also pointing out if you're going to sit back and wait for the perfect bill that's not going to happen here. Everyone's not going to get everything that they want in this bill, but he points out that this is the best time to get that bill done and they're hoping that it can be done soon.

COLLINS: Yes. And still so many questions out there about how many more people it will cover and how much it's all going to cost. I imagine everybody wants to know whether or not it's even possible to get this thing done this year.

LOTHIAN: That's right. And you know Robert Gibbs was asked that yesterday in terms of, you know, coming out of that meeting yesterday, how did the president feel about getting this done by the end of the year. And he pointed out that the president is cautiously optimistic that this will get done.

But, again, also saying that there's still some differences here that have to be hammered out. They're cautiously optimistic, but you know, not celebrating yet.

COLLINS: Yes. Understood. All right, Dan Lothian, from the White House this morning. It's cold, too, because we can see your breath out there, Dan. Thanks.

LOTHIAN: That's right.

(LAUGHTER)

COLLINS: The full Senate has agreed on one proposed amendment to the health care bill and consumers may not really like this decision. Yesterday the full Senate rejected the idea of allowing prescription drugs to be imported from Canada and elsewhere.

Consumer groups argued those countries sell the identical drugs at much lower prices and that millions of Americans could save precious money in their health care costs.

Now, Democrats scrambling for Senate passage have long known they had to win support from one reluctant senator, independent Joe Lieberman. He now says he's ready to get on board.

(BEGIN VIDEO CLIP)

SEN. JOE LIEBERMAN (I), CONNECTICUT: I've always wanted to be able to say yes to health care reform, but there were some parts of this bill, public option, Medicare buy-in, that I thought would essentially lead to a government takeover of health care in America which I'm against. Because I think it would reduce quality and increase prices and certainly raise the debt and taxes.

If as appears now that the public option, the Medicare buy-in are taken out, and I'm waiting to see the actual language and the budget office estimate, then I'll be in a position to do what I wanted to do, which is to say yes to health care reform.

(END VIDEO CLIP)

COLLINS: Interesting. Now, at the bottom of the hour, we want to let you know we're going to be hearing right here from two senators, one of them Republican, one of them Democrat. We're going to hear their differing views and continue this discussion and what it means to you coming up in just a few minutes from now. About 25 minutes.

Meanwhile, want to get to this story. Iran has fired a new long- range missile this morning. Video of the launch -- look at this -- was shown on state TV. Iran's defense minister says the new missile is meant as a deterrent to other countries. He says the high speed missile has a range around 1200 miles and depending on where it's fired from inside Iran, that means it is could reach Israel, Egypt, southern Europe and east to India.

Police facing off with protesters outside the Climate Change Summit in Copenhagen, Denmark this morning. Police say more than 200 demonstrators were detained when they tried to break through the security perimeter around the UN conference. President Obama is scheduled to arrive at the summit on Friday.

Well, they weren't White House party crasher, but they did get to meet the president under some pretty unusual circumstances. A Georgia couple mistakenly arrived one day early for a White House tour that was arranged by their congressman. Well, after the appropriate screenings, they were allowed to attend the Veterans Day breakfast. They also got to meet the president, the first lady and the vice president. It wasn't until the couple went back home they realized they were at the White House on the wrong day. 67-year-old Harvey Darden, a Navy vet, says, "It was dumb luck that a veteran of four years was able to meet the president of the United States who I have lots of support and respect for." A White House official is calling it a nice gesture.

The annual honoree has been chosen. "TIME" magazine unveiled its Person of the Year earlier this morning. It is Fed chairman Ben Bernanke.

And our Josh Levs has a little bit more on the choice.

Hey there, Josh.

JOSH LEVS, CNN CORRESPONDENT: Hey there, Heidi. We've got how Ben Bernanke's background helped lead to some major changes in our economy. Plus, the big declaration that "TIME" magazine is making about his influence on the entire world. All that coming up -- Heidi.

COLLINS: All right, very good. We'll talk in a minute. Thank you, Josh.

More help for the jobless and maybe more hope for their future, too. A jobs program and an unemployment benefits extension come up for a vote in the House.

ROB MARCIANO, CNN METEOROLOGIST: I'm Rob Marciano in the CNN Severe Weather Center. Breezy conditions expected across the northeast and chilly. Temperatures right now, 20 Detroit, 32 degrees not including the wind-chill in New York, and seven currently in Chicago.

If you're doing any sort of travel today, those winds will very well likely slow down some of the airports, and in New York metropolitan, including Boston, D.C. metros. San Francisco actually storm coming into the west coast seeing an hour delay at this hour.

But the good news with this front is starting to see some drier weather across parts of the southeast including Atlanta, Georgia.

We'll talk more details about the forecast over the next couple of days, that's in about 30 minutes. We'll see you then.

(COMMERCIAL BREAK)

COLLINS: Dispute over the deficit. With the White House scheduled to vote today on a higher federal debt limit, lines are being drawn over deficit spending.

Now President Obama believes it's too early to stop government spending programs designed to create jobs. He also wants to use leftover bank bailout funds for job programs.

Republicans, though, want to use those bank bailout funds to reduce the deficit. And some moderate Democrats have joined Republican lawmakers in saying spending has gotten out of hand.

Today's debt limit vote would increase the government's ability to barrow by more than $200 billion over two months.

The House also plans to vote today on a new job creation program, as well as extending jobless benefits.

And CNN's Christine Romans joining us now from New York to break down this legislation for us.

So, Christine, good morning to you. What exactly is in the bill that the House is going to vote on today?

CHRISTINE ROMANS, CNN CORRESPONDENT: Well, what's in here is safety net spending, an extension of the safety net and also new job creation initiatives. So let's start with the safety net here because according to the National Employment Law Project, there will be a million people in January who will lose their unemployment benefits and another three million by March.

We've already had an extension of jobless benefits, but a lot of people are facing their checks running out anyway, so this would extend the deadline for jobless benefits and also Cobra. You know, under the stimulus, there is a subsidy for Cobra. That's the sort of emergency health insurance once you've lost your job so that you can remain insured.

It can be kind of expensive for people, so there's some subsidies in there to help people pay for it once they're out of work. Also anyone getting a jobless check today may or may not notice that there's $25 extra in there from stimulus. This would maintain that $25 extra per jobless check and it would have more money for food stamps.

Also there's the job creation part of it. So the House Democrats want to help people who are out of work and continue that, but also try to get people back to work. And that includes $75 billion over all. This would be TARP money, the money that they can allocate for job creation, $27 billion for cash strapped states.

Heidi, that would continue to pay for teachers, firefighters, police officers, people who are going to face, at the end of next year, the end of this year, losing their jobs simply because there's no state money to pay for it. This will keep people on the job. And another $48 billion for infrastructure projects.

This is the House. As you know, the Washington process, it is a big long process. The Senate would have to take this up probably when it comes back after the break -- Heidi.

COLLINS: Yes. OK. Understood. We have something else to talk about here, too, so Christine, I want you to stick around if you would.

ROMANS: Sure. COLLINS: "TIME" magazine says Ben Bernanke is the guy, they're calling him the "TIME" Person of the Year, of course, and they're saying that it is his economy, calling it here, quoting now -- I want to be clear, quoting -- "the most powerful nerd on the planet."

Today "TIME" magazine named the Federal Reserve chairman Person of the Year for 2009.

Josh Levs has also been following this very closely. He's got some more details.

So is he self proceed fenced nerd, as well?

LEVS: You know what, they do -- it's interesting. They do this profile. They kind of give a description of the way that he lived, they say here he is, this incredibly powerful man, but the fact is his wife makes sure he always takes out the trash and has to cook the meals at home and continues to be a homebody.

So, you know, I don't think he'd really fight the description, certainly not trying to be one of these typical Washington socialites. Apparently. What is most interesting to me always when "TIME" makes this decision is the declarations that this prominent magazine is making about this individual.

So let's go straight to these graphics. I want you to see the key quotes from their announcement. First of all, they're saying it straight up. "It is Ben Bernanke's economy." That is a statement a lot of people would agree with. We're going to show you in a minute how you can agree or disagree.

Let's go to the next quote because this talks about why. Now the Fed controls the money supply and they say ever since the global credit markets began imploding, its mild mannered chairman has dramatically expanded those powers and they say reinvented Fed.

And I have one more quote for you here. I want you to check out. They say something about his background and the fact that he at Princeton was a leading scholar of the Great Depression. So he brought with him that background knowledge and then they say he was determined not to be the Fed chairman who presided over depression 2.0, and it's in keeping with that, which is understanding of history and with the decision that he made that he conjured up trillions of new dollar, blasted them into the new economy, into this economy.

He didn't just reshape U.S. monetary policy they say. He led an effort to save the world economy.

I want to mention, and we have some video from here, they also talk about the controversies surrounding him from the left and the right, that there are a lot of people who have a lot of problems with some decisions he's made, some of the places where banks have gotten a lot of money, big corporations getting some support.

Also some others feeling he hasn't done enough to infuse the economy with everything it needs to get job creation going. So they're certainly not shying away from the fact that he is a controversial figure. And of course he is in that position.

We heard this morning from the international editor of "TIME" magazine about why they made their choice.

(BEGIN VIDEO CLIP)

MICHAEL ELLIOTT, EDITOR, TIME INTERNATIONAL: I mean this was a man for the last 18 months has really tried everything, in a way -- in an exercise that has been surprisingly kind of impressive and creative. And I think it was very significantly for that reason that we chose him over other possible architects of the economic recovery.

(END VIDEO CLIP)

LEVS: And before I go away, I want to show you that "TIME" actually has a quote from him that I found interesting. And again he talks about his own background. "I come from Main Street," he says, "from a small town that's really depressed. This is all very real to me."

Heidi, I was taking a look at the story. He also says, "This isn't a video game to me." You know he's showing a direct relationship with the struggles going on on what has become maybe one of the most overused terms in America, Main Street. But...

COLLINS: Yes.

LEVS: This is really interesting. Check it out. It's right here on CNN.com. Our main story right now.

COLLINS: Yes. OK, Christine, I know you're still with us, too. Christine Romans. You actually say look, the hard work is just beginning now for Ben Bernanke.

ROMANS: That's right. He's only completed maybe the first 10 percent of what he's got to do because he's injected, and Josh is absolutely right, $6.4 trillion worth of bailouts, guarantees, and -- wow, programs, Fed programs, into the economy. That's not counting the TARP.

$6.4 trillion is what he has pushed into the economy or promised to push into the economy. And now he has got to unwind that and not cause another financial crisis as they unwind it.

COLLINS: Yes.

ROMANS: And that's what they're doing at the Fed right now, talking very, very carefully, Heidi, about how they're going to do that.

Now I want to add one quote to this discussion.

COLLINS: OK.

ROMANS: This is a quote that I found a couple of years ago. It's from Ben Bernanke, May 17th, 2007. He said, "We do not expect significant spillovers from the subprime market to the rest of the economy or the financial system."

COLLINS: I remember. I remember.

ROMANS: So you're going to hear a lot today about Ben Bernanke and how he has saved the world, but remember, Ben Bernanke, the depression scholar, in May of 2007 was saying don't worry about subprime, it's not going to take down the financial system.

And he was wrong. So that's one of the things that people who look at all of the people in charge of getting us out of this mess, and there's still a lot of work to do, they haven't always been right all along the way. So it's still an inexact science about where we go from here.

LEVS: And the world definitely has not been saved yet. We all know that.

COLLINS: Yes. Certainly.

ROMANS: That's right.

COLLINS: All right, guys, we appreciate the discussion. Christine and Josh, thank you.

Also want to let you know "TIME's" Person of the Year, Ben Bernanke, well, it's the hot topic on my blog this morning. Tell us what you think. Do you think he's a good choice? Anyone else you think it should have been instead?

Go to CNN.com/heidi. Post your comments there. I of course will read some of them coming up in the next hour.

The H1N1 vaccine missing the mark. 800,000 doses made especially for young children are recalled. The parents are being told not to worry.

(COMMERCIAL BREAK)

COLLINS: Let's get to our top stories now this morning that we are watching closely.

Emergency talks are scheduled to begin next hour as British Airways tries to head off a planned strike by cabin crews. But the airline has already asked the high court to issue an injunction against the strike. Workers unhappy with their pay and conditions are threatening to walk out for 12 days over the Christmas holiday.

Rescue workers have ended their search for two missing climbers on Oregon's Mount Hood saying it is just too dangerous to keep looking. The families have been told the chances the climbers are still alive is slim. Crews say the search may not resume until the spring.

(COMMERCIAL BREAK)

COLLINS: Hundreds of thousands of doses of the H1N1 vaccine are being recalled. But health officials say the small children who got the shots are in no danger.

CNN's senior medical correspondent, Elizabeth Cohen, joining me now to talk a little bit more about this. Yes, first off, when you hear this, you're like, what?

ELIZABETH COHEN, CNN SENIOR MEDICAL CORRESPONDENT: Oh my goodness, right, kids were given bad shots? Right. But this is not a safety issue, as you said. This is an efficacy issue. The problem is, when they did some testing on the vaccines after they were put out in the market, they weren't as strong as they should have been.

In fact, they missed their strength mark, their potency mark, by about 12 percent. So that's why they're doing this recall.

So let's look over some of the basics of the recall. It's by -- for a vaccine put out by Sanofi Pasteur, which is a French vaccine drug company. It's -- the vaccine for children ages 6 months to 3 years of age and they are recalling 800,000 doses. They're asking doctors to bring it on back.

COLLINS: Hmm. So what do you do if you're a parent of a child who has had this? Anything?

COHEN: Well, first of all, probably most parents don't even know. Right?

COLLINS: Yes.

COHEN: If you get your kid a shot, you don't know if it's (INAUDIBLE) Sanofi Pasteur or whatever.

COLLINS: Of course .

COHEN: Now thankfully it doesn't really matter if your child had this shot. If your child had this, or any other H1 shot at this young age, they need to get a second shot anyway, so just make sure that you bring your child back about a month after the initial vaccine for the second shot. It's especially important if you've got these sort of weaker shots. So there's no danger again.

COLLINS: Yes.

COHEN: And there's nothing special that parents need to do.

COLLINS: Yes. OK. But should kids still be getting the H1N1 vaccine at this point?

COHEN: Yes, they should because there's still H1N1 flu out there so kids can still get it. And when you go, you want to be an empowered patient. If you have not yet gotten your kid vaccinated but you want to against H1N1, go ahead and ask your doctor, is this a Sanofi Pasteur vaccine.

And if it is, check and see if it's one of the lot numbers that's being recalled. Now I can't read all the numbers now, but if you go to CNNhealth.com, you can see the list of all of the different lot numbers. So it is possible that your doctor still has these on his shelf. You want to make sure you don't get them.

COLLINS: All right, thank you. Elizabeth, appreciate it.

COHEN: Thanks.

COLLINS: The battle over health care reform, partisan divisions, passionate debate. We're going to hear from two senators, one Republican, one Democrat. Where do they agree and what are they still hoping for?

(COMMERCIAL BREAK)

ANNOUNCER: Live in the CNN NEWSROOM, Heidi Collins.

COLLINS: Well, stocks fell yesterday with the Dow snapping a four session winning streak. But the buying is likely to pick back up again this morning following a series of encouraging economic reports. We always like the sound of that.

Susan Lisovicz at the New York Stock Exchange now with more details.

Hi there, Susan. What's the scoop?

SUSAN LISOVICZ, CNN CORRESPONDENT: Well, we're expecting a higher open, Heidi, as applause sounds waiting for the opening bell. New home construction rebounded by nearly 9 percent last month. All areas of the country are showing strength and building permits, a sign of future building, surged by a greater-than-expected 6 percent.

Meanwhile, a separate report on consumer prices shows inflation remains in check last month. And I should give the Federal Reserve the room it needs to keep interest rates at historic lows near zero. The Central Bank will issue its final policy statement of 2009 about 2:15 Eastern time.

But Fed Chief Ben Bernanke may take the spotlight himself today because he's "Time" magazine's person of the year. And when you think about it, no surprise given some of the extraordinary measures that he has presided over in the past year. We've witnessed it together on a daily basis.

"Time" says the economy would probably be in much worse shape without him. Over the past two years Bernanke has thrown trillions of dollars at the economy to prevent it from sinking into depression, dramatically expanding the fed's power at the same time.

Another big player, the FDIC and its hiring. Published reports say the agency plans to add 1,600 staffers next year. More than 130 banks have failed so far this year, so the FDIC is boosting its budget to handle the growing workload.

Finally, McDonald's will soon offer free wireless Internet access at most of its locations. It currently offers WiFi, but you have to pay $2.95 for two hours. That fee will be lifted. McDonald's is amping up the competition with Starbucks, which we know also offers free wireless access.

And checking the early numbers, we're seeing some green arrows. The DOW, the NASDAQ, the S&P 500 each up better than a third of a percent -- Heidi.

COLLINS: OK, very good, we'll check back later on. Susan Lisovicz, thank you.

The battle over health care reform now. Could the end be near? President Obama says the Senate is put on the precipice of passing the sweeping reform bill. It won't please everyone. It looks like the final Senate version will drop a controversial public option or its alternative, a Medicare buy-in.

A moderate democrat, Ben Nelson, is still hoping for tighter restrictions on the federal funding of abortions, as well. The president says it will reduce the benefit and provide coverage to 30 million uninsured Americans.

Well, as you know, the clock is ticking. We've been talking about this for a long time. The president has been pushing for a Senate vote before Christmas, and that means our next two guests have an awful lot to consider.

Senator Debbie Stabenow is a Democrat from Michigan, and Senator Orrin Hatch is a Republican from Utah, both of them joining us now with more on this. Thanks for being here to the two of you. I know you've been working hard on both sides of the fence here, so we appreciate your time.

Senator Stabenow, I want to start with you, if I could. We know that you met with the president yesterday along with the 59 other senators. He came out of that meeting saying he was, quote, "cautiously optimistic." Is this bill going to pass?

SEN. DEBBIE STABENOW, (D) MICHIGAN: Well, I share that cautious optimism, Heidi.

And let me just say, the status quo doesn't work anymore. Too many jobs are going overseas because of health care costs for our manufacturer, small businesses can't afford health insurance, individuals losing their job and losing their health care.

So what we agreed to yesterday was two things -- one, that it is time to as a matter of American policy say every in America should be able to find affordable insurance. And, number two, we've got to bring the costs down. So those two things...

COLLINS: So, yes, it will pass, or no, it won't.

STABENOW: I believe it will. Yes, I do.

COLLINS: You believe it will.

Senator Hatch, to you. Republicans of course watching all of this unfold at this time, and also watching closely Senator Joe Lieberman and where he will fall on all of this. Have you had a chance to speak with him specifically regarding the expansion of Medicare?

SEN. ORRIN HATCH, (R) UTAH: Joe and I are very close, and I'm reading in the papers that he's pretty well agreed to what they've agreed to down at the White House yesterday. So we'll have to see what happens.

But I know one thing, he doesn't want a public plan, and what they're talking about basically having OPM, the Office of Personnel Management take over this program and have the one or two private sector companies put up programs, if you want another government sponsored enterprise like Fannie Mae or Freddie Mac, this is the way to do it.

And guess who is on the hook for what it costs? It's going to be the taxpayers.

COLLINS: Well, let's say, because what we're hearing of course, not confirming anything yet, that the senator, we're talking about Joe Lieberman again, may actually go ahead with voting for the Medicare expansion so the way that it has been written.

The next obstacle would seem to be if that happens would seem to be if Senator Ben Nelson, and Senator Hatch, I know you were the cosponsor of the bill regarding federal funding for abortion. It was defeated. What happens next on that front?

HATCH: Well, I don't know what they're going to do on that front, but Ben has told me at least five times that he will vote against cloture if they don't solve that problem the way we actually brought it.

All we're trying to do is stop them from charging the taxpayers for abortion and also allowing people with conscience to not have to participate in the acts of abortion.

And it's more than that, too. I think Ben's as concerned as I am that they'll take $500 billion out of Medicare. That's up front in the first five years, the full five years it would be over $1 trillion out of Medicare, and the full 20 years it's going to be $2.5 transparency out of Medicare.

Now, how do you do that for a program that's $38 trillion in unfunded liability as we stand here?

COLLINS: So many numbers floating out of there, and I'm sure, Senator Stabenow, you will disagree with many of those.

Regarding this possible change in federal abortion funding, the Medicare expansion, the public option, what happens when all of those things are potentially gone and we're talking about compromise here for your party? Do you go ahead with the bill?

STABENOW: Well, first of all, let me say one of the most important provisions is our efforts to save Medicare. We strengthened the trust fund for nine additional years. We're going to close the gap in prescription drug coverage completely for seniors.

AARP is on board, saying this is the right thing to do. None of their benefits that are defined under Medicare will be cut. We're simply going to cut back on excessive payments to for-profit insurance companies.

And as it relates to abortion, let me just say, and Senator Hatch is a friend of mine, but we have a profound difference on this. We all agree there should be no federal funding.

But this goes farther, to say if you get tax cuts from the federal government, you can't purchase health insurance with your own money that includes this provision.

When we looked broadly, highly at this bill, we see a very strong reform as it relates to stopping insurance company abuses. You're going to be able to find insurance if you have a preexisting condition. You'll get what you pay for. You won't get dropped when you get sick because of a technicality. Your children will be able to stay on their children until age 26.

We have numerous things in this bill worth fighting for, and we intend to get it done.

COLLINS: Senator Hatch?

HATCH: Well, if you think spending $2.5 trillion over the next ten years or so is the right thing to do, and if you think the federal government will manage this better than the private sector, I mean, just look at Fannie Mae and Freddie Mac. This is what they're setting up.

And, frankly, they're going to subsidize with federal funds, taxpayer funds, they're going to subsidize people making up to $88,000 a year. That's just crazy.

COLLINS: Is there any dispute on that, Senator Stabenow?

STABENOW: Heidi, let me just say that, with all due respect, all we hear is complaint, complaint, complaint, one thing after another. And yet the status quo is not working.

We have worked all year to come together to provide an opportunity for a bipartisan approach. The determination was made by the Republican leadership they'd rather try to stop something that's a priority for this president and this Democratic caucus rather than actually coming together and doing something that affects everyone.

Democrats, Republicans, Independents, small businesses, people who are in business for themselves -- this is, actually, the insurance exchange is something that has been proposed in the past by Republicans as well as Democrats. It's very unfortunate that politics have gotten in the way.

COLLINS: Will there ever be a bipartisan issue, Senator Hatch? HATCH: If I could just answer that. The original health committee bill, total Democrat bill. Not one Republican asked to participate. House bill, total Democrat bill, not one Republican asked to participate pit. Harry Reid, total Democrat bill. Yesterday at the White House, totally Democrat.

Then they say we're into the cooperating with them. We'd like to have a system that works and isn't going to eat the taxpayers and isn't going to eat the taxpayers alive and that will run not by the federal government but run by the competitive system in our society.

Anybody who thinks the federal government will run health care better than the private sector I think is just -- just hasn't looked at the facts.

COLLINS: Senator Stabenow, I ask again, is this going to be a bipartisan bill? Yes, go ahead.

STABENOW: This is not our choice that it's a partisan bill. We have worked and worked and worked, as Senator Hatch knows. We have worked and worked to bring people together. But in the end...

HATCH: No you haven't, senator.

STABENOW: People are not going to care. People are not going care whether it's Democrats or Republicans who voted for this. What they want to know is, are they going to get what they pay for, can they find affordable insurance? Are seniors going to get help with their prescription drug coverage? Are we going bring down costs for small businesses and big businesses?

That's what people care about. And that's what we are focused on, and this is about saving lives, saving money, and saving...

STABENOW: And the Congressional Budget Office says that the premiums will go up. CMS says it will cost more.

STABENOW: Not the numbers I've seen.

HATCH: I've seen those numbers...

COLLINS: There's the problem, if I may, with all due respect to the both of you, the problem still seems to be talking about this so far down the line, because you are more aware than any of us being in on these meetings that we've been talking about it for what seems lying an eternity.

The numbers are still very, very different from what the Republicans think and what the Democrats think in the way this will all line out for the future of America.

I don't think anyone disagrees that these are all the things that we want regarding the plan for our families and for our future of health care.

But I think it all comes down to, as we've been trying to attribute to the Congressional Budget Office and what numbers they are coming out with, who will pay for what and how much will it cost each one of us.

And with that, I am so sorry, we could talk for ten days on this, I know it. We appreciate the time from both of you. We certainly wish you luck in getting all of this taken care of before Christmas. I know that there's been some talk of maybe going through Christmas.

So keep talking. Keep working. We wish it all comes together for everybody, obviously. Senator Debbie Stabenow and Senator Orrin Hatch, thank you very much.

STABENOW: Thank you.

COLLINS: I want to get to our top stories now.

Officials at a Milan hospital say Italian Prime Minister Silvio Berlusconi is expected to be released today. The prime minister, as you know, in case you didn't see this, though, suffered a broken nose and two broken teeth on Sunday when a man hit him in the face with a statuette after a rally. Ouch.

Police are questioning another man to who tried to get into see Mr. Berlusconi early this morning.

A victory in the nation's capital for same-sex marriage. Yesterday the D.C. city council voted to legalize gay marriage. The measure must now be signed by the mayor and win approval in the United States Congress.

The District non-voting Congressional delegate says she expects no opposition among legislators.

And Hollywood looking to end the year with a record bang at the box office. One big movie the industry has its hopes on is "Avatar" which premieres in L.A. tonight and then opens nationwide on Friday. The science fiction epic is directed by James Cameron.

Overall domestic box office grosses for the year are expected to top $10 billion.

Now, this probably never happens. But say you get a Christmas gift you don't like. You want to take it back, but this year it could actually cost you money. We'll tell we'll tell you why in a moment.

(COMMERCIAL BREAK)

COLLINS: Let's get over to the Severe Weather Center now. Rob Marciano standing by with more on where should we be looking today? I see a big fat sunshine.

ROB MARCIANO, AMS METEOROLOGIST: Yes well, that's right in the big fat heart of U.S., but everywhere else or in other spots, there's some more interesting weather going on.

So the heart land seeing a little recovery from the really cold temperatures that they been seeing and places like New Orleans seeing a recovery, as well, from some of the rainfall that we've been showing you the past couple of days.

Here's the total for New Orleans yesterday, 5.71. And we mentioned they had seen over 22 inches of rainfall for the month already in December, so it's the wettest December on record at the airport and we're just barely halfway through.

West Palm Beach, three inches; Alexandria, as part of that similar system that went through the New Orleans; and the Mount Shasta and Salem, Oregon also getting in to that. Most of the rain across the south has shifted down to the Texas/Mexican border, so that gives New Orleans a break at least for now.

And then cold air now coming into the northeast and we could see anywhere from six to 12 inches of snow in the lake-effect favored spots. Not a dramatic amount compared to what they've been seeing but nonetheless temperatures certainly are on the chilly side there and blustery across parts of the northeast.

Meanwhile, another storm coming in to the Pacific Northwest and that will usher in rain in the valleys and some heavier amounts of mountain snow. Those are the daytime highs.

Temperatures right now are pretty chilly; 7 in Chicago, 19 in Kansas City. So for little furry guys like this particular one in Topeka, Kansas, you know, not a moment too soon it will warm up or did -- that's his mom, by the way just can't even watch as firefighter dove in there the Lake Sherwood to catch, I don't know the name of this lab.

But here she got out and mommy was there waiting with a towel and to warm them up. And just another fabulous canine rescue for our friends there on the fire department.

On a warmer note Heidi...

COLLINS: Ok.

MARCIANO: ... here's the shot from Miami, temperatures there in the upper 70s. They hit a record high of 85 degrees yesterday, so once again Miami seems to be the place to be if you're a dog who wants to go swimming, rather than a frozen lake.

COLLINS: Yes and no knocking on the labs because I've had three, but I have to say, if you're to throw a ball back out there...

MARCIANO: Yes.

COLLINS: ... they'd go right back out.

MARCIANO: Very loyal.

COLLINS: God bless them.

MARCIANO: Very loyal, smart. COLLINS: Yes.

MARCIANO: Not so much.

COLLINS: Hey, I will not go with that, no way.

All right, Rob, we'll check back later. Thank you.

MARCIANO: All right, I'll see you.

COLLINS: Not sure if you want to keep that holiday gift from Aunt Edna? So hold off on opening it or you could pay a hefty restocking fee now.

Our Gerri Willis is here to talk about some changes this season in returns and restocking fees.

Gerri, this is tragic. You would actually have to pay for something that you didn't want when you return it?

GERRI WILLIS, CNN PERSONAL FINANCE EDITOR: That's right. You know, Heidi, more retailers are charging what they call a restocking fee, that according to the Massachusetts Consumer Affairs office. And just to remind you these are fees that are imposed on returned goods typically electronics if they're open or if they're not in a factory seal.

But, for example if you bought a $300 buck product, you were charged a 15 percent restocking fee, you'd only get back $255. But let me tell you Heidi, these restocking fees can go to the moon. They can be anywhere from 10 percent to 25 percent, we've even seen some retailers charging up to 60 percent restocking fees.

COLLINS: What?

WILLIS: Yes. Overstock.com, for example, will keep 60 percent or more of the price of your jewelry or watch if you return it in a damaged box or any of the manuals or tags are missing and it's not just jewelries and electronics.

CO: I guess that because they're overstocked.

WILLIS: I guess they are overstocked. But you still don't want to pay 60 percent to send something back, right?

COLLINS: That's unreal, yes.

WILLIS: According to Consumer Report, you may be charged a 15 percent restocking fee for appliances, tools, garden products. Look, to avoid these fee, just don't open the package if you don't want what's inside. Sort of ruins the holiday surprise, but at the end of the day you've really got to watch out for this.

COLLINS: Yes, well, what about the trends as far as returns are concerned this year? What's typically seems to be going back? WILLIS: Well, restocking fees aside, returns are a bit easier that's according to a survey from Consumer World. This year some stores have extended return deadline which is good news. They've eased policies regarding the return of goods without receipts.

Here's some new policies this year. Target for example won't require a receipt for returns, which is good...

COLLINS: Yes.

WILLIS: ... but that's only if the amount of receipt was stuff you exchange is less than $70 bucks. Best Buy has lengthened its holiday return period to January 31st except for computers. And Wal- Mart has extended the holiday return period, no computers and cameras -- Heidi.

COLLINS: So there's got to be some stores that have better return policies. I mean, yes, I've definitely noticed sometimes you have to have the receipt, sometimes you don't, sometimes merchandise only and so forth.

WILLIS: Right, well, you know, it's different with different stores according to Consumer Reports. You'll find the best, most generous return policies at Bed, Bath and Beyond, Bloomingdale's, Costco, Ikea, and Kmart.

Retailers would return policies most likely to trip you up, include Home Depot where you can't return items you bought online at their stores. Buy.com where you have 30 days to return an item once it's shipped regardless of when you got it. And Overstock.com, who I mentioned before, you can't return TVs over a certain size.

As always, it's buyer beware here. Make sure you keep your receipts if you buy and return items online. Be aware that many merchants do not refund the cost of shipping; you'll have to pay that yourself.

Consumers who have a problem returning a gift should first contact the store manager or customer service. And if you're still having issues, you could file a complaint with the state attorney general's office or a local consumer agency -- Heidi.

COLLINS: All right, very good. Gerri, I appreciate that.

Is that text you sent on the company phone really yours? Or is it theirs? It's a privacy matter and the Supreme Court will weigh in.

(COMMERCIAL BREAK)

COLLINS: As always, a lot going on this morning and our CNN crews are in place to bring you all of the details. I want to check in with our correspondent beginning with Susan Lisovicz at the New York Stock Exchange. Hey there Susan.

LISOVICZ: Hey, Heidi. Well, the Federal Reserve is set to decide today on interest rates which affects you and your wallet, but the Fed chief himself could steal the spotlight because he's "Time's" Person of the Year. Heidi, more on the man described as the most powerful nerd on the planet in the next hour.

MARCIANO: Nerd here, yes; powerful, no. We are looking at storms across the south that are finally shifting further south, giving New Orleans a break after a record-shattering first two weeks of December, but the rains will probably come back. We'll talk more about that in the next hour.

ELIZABETH COHEN, CNN SENIOR MEDICAL CORRESPONDENT: I'm Elizabeth Cohen in Atlanta. How what you eat may influence your chances of getting Alzheimer's disease. I'll have that at the top of the hour.

COLLINS: All right, thanks so much, guys.

Also ahead, a Pennsylvania coal town divided over the fatal beating of a Mexican immigrant. Was it a hate crime and did the local police conspire to cover it up?

(COMMERCIAL BREAK)

COLLINS: It is a hot button issue in the workplace. When you send a text or e-mail using company property, do you give up your right to privacy? That question is at the center of a case now the U.S. Supreme Court will take it up next term.

CNN's Bill Tucker reports.

(BEGIN VIDEOTAPE)

BILL TUCKER, CNN CORRESPONDENT: Texting has already changed the social scene and the workplace; now it's about to change the legal landscape. The Supreme Court has agreed to hear a case involving an Ontario, California police officer who used a government-issued texting pager to send private, personal texts, some of which were explicitly sexual.

Department policy allowed for personal use, so when the police department requested records of those texts, the officer, Sergeant Kwan, sued, saying his privacy had been violated. His lawyer explains.

MICHAEL MCGILL, ATTORNEY: They never put out a policy in writing. They never explained to them unequivocally that it does apply, that there is a "no privacy policy".

TUCKER: Kwan lost his first trial but California's Ninth Circuit Court of Appeals overturned the decision agreeing with the sergeant. Now the Supreme Court is stepping in and putting the case on their calendar for next year.

ORIN KERR, GEORGE WASHINGTON UNIVERSITY LAW SCHOOL: This will be the first case that the Supreme Court has ever taken which will give the court an opportunity to apply the constitution to text messages and by extension to the Internet. So it could be an extremely important case.

TUCKER: At the core of the case is the question of an expectation to a reasonable right of privacy. Should or can an employee expect his or her private communications to stay private? Lawyers arguing for employers say the expectation doesn't exist for employees working on company-issued equipment.

CHERYL WILLERT, CIVIL DEFENSE ATTORNEY: If I have a piece of equipment, whether it's a telephone, whether it's a computer, whether it's a video monitor and it belongs to me and I allow you in the furtherance of your performing a job for me for which you were hired, I should clearly have the ability to monitor what is going on.

PHILIP GORDON, EMPLOYMENT ATTORNEY: Employers need that ability. It's important to the way employers run their business.

TUCKER: Privacy advocates argue that while the equipment belongs to the boss, the content of an employee's personal text don't.

Bill Tucker, CNN, New York.

(END VIDEOTAPE)