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House Passes Health Care Reform; Reforming Health Care Reform; What's in the Health Care Reform for Americans?; : "Computers on Wheels"; Student Loan Reform

Aired March 22, 2010 - 06:00   ET

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


JOHN ROBERTS, CNN ANCHOR: Good Monday morning to you. Thanks so much for joining us on the Most News in the Morning. It's March the 22nd. I'm John Roberts.

KIRAN CHETRY, CNN ANCHOR: I'm Kiran Chetry. Glad you're with us. Here are the big stories we'll be telling you about in the next 15 minutes.

First, America is now a heartbeat away from health care reform. A sweeping overhaul approved by the House last night. The president hailing it as a win for the people. Republicans though claim he's been railroaded, so who's right? And how will the new plan impact you? That's ahead.

ROBERTS: There are benefits of this bill that will kick in in this election year. Other parts you'll start paying for now but won't feel for years. We'll dig into this historic stack of health care changes to find out what's in it for you and your family.

ROBERTS: And Toyota's troubles clouded by confusion. The automaker says its recalls are about faulty gas pedals and floor mats not about electronics. But why are some experts in the field not convinced? We have new details this morning in an "A.M. Original."

Well, we begin this morning with a historic overhaul of American health care. The president's signature and one more Senate vote all that's standing in the way of sweeping reforms that will impact each and every American and the medical professionals who care for us. The House passing a bill last night that first cleared the Senate back in December.

The final vote, 219 for and 212 against. Not a single Republican voting in favor of a Democratic plan that provides health insurance coverage to two-thirds of the Americans who don't have it now.

(BEGIN VIDEO CLIP)

REP. NANCY PELOSI (D-CA), HOUSE SPEAKER: Thirty-two million more Americans having access to health care, $1.3 trillion saved for the taxpayer and accountability for the insurance companies so they cannot come between patients and their doctors.

REP. JOHN BOEHNER (R-OH), HOUSE MINORITY LEADER: Shame on us. Shame on this body. Shame on each and every one of you who substitutes your will and your desires above those of your fellow countrymen.

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: This legislation will not fix everything that ails our health care system, but it moves us decisively in the right direction. This is what change looks like.

(END VIDEO CLIP)

CHETRY: So what exactly will change look like in the weeks and days moving forward? This morning, CNN is covering the reforming of our health care system like no one else can. We have Jim Acosta and Brianna Keilar with us live this morning in Washington.

And, Brianna, let's start with you. What did it? What was it that finally locked in those last-minute votes?

BRIANNA KEILAR, CNN CONGRESSIONAL CORRESPONDENT: Kiran, it came down again to the issue of abortion because what you had was some anti-abortion Democrats led by a Michigan Congressman, Bart Stupak, who were withholding their votes. They were no votes because they had concerns that this package didn't go far enough to make sure that federal funds weren't going to be paying for abortions.

Do the math. When you have a vote this close, 219-212 and there are several members who are having this issue, that is enough to get in the way here. So what happened was really at the last moment and these pictures that you were looking at right there, this was just hours before the vote. At the very last moment they came to a compromise with Democrats with the White House, where after this health care reform package is passed, President Obama will issue an executive order restating support for current law governing this, which says no federal funds for abortions except in the case of rape, incest or if a mother's life is in danger, Kiran.

CHETRY: There's also a pretty big outburst on the House floor. What happened before the vote?

KEILAR: This was really reminiscent of that Joe Wilson moment. Remember when he yelled "you lie" at President Obama during his joint address to Congress. We don't know who did this one, but it was someone, it was a Republican lawmaker who yelled at Bart Stupak, "baby killer" on the House floor, very audible. All of the members of the press, we were up in the gallery watching and we heard this. And right now we know that some Republicans certainly know who said it but they're not really sharing that information with us.

This went down when Republicans were offering an alternative piece of legislation. As it turned out, it was strict abortion language that Bart Stupak himself had written back in the fall and was unable to secure in this bill. So it was this moment of sort of political back and forth between Republicans and Democrats.

And as Bart Stupak was there on the floor arguing for Democrats to vote against this very language that he himself had written, someone, a Republican lawmaker yelled this out. And, Kiran, we're still working to figure out, like I said, who it was.

CHETRY: A little bit later today probably. Brianna Keilar for us this morning, thank you.

ROBERTS: All right. So the politics, of course, significant, but what's more important to you is what's actually in the bill. Let's turn to Jim Acosta now. He's breaking it down for us.

What's in the measure, Jim? What's about to change?

JIM ACOSTA, CNN CORRESPONDENT: Well, it is still pretty complicated, John, but we're going to try to break it down for you. It's important to talk about the Senate version of health care reform because that's the version the House approved. The House also passed a fixed bill that tries to change parts of the Senate legislation.

But until the Senate passes that fix, its original version will be the law of the land as soon as the president signs it. And with this new law, we're talking about some major changes to the nation's health care system that will happen this year.

Now, consider this. Within the next six months, insurance companies will no longer be able to deny coverage to children with preexisting condition. Within 90 days, adults who can't get insurance because of preexisting conditions would be able to sign up for a new high risk insurance pool. And young adults will be able to stay on their parents' insurance plans until they turn 26.

John, Democrats really like those elements of the health care bill because, obviously, they talk about kids who can't get health insurance. Those are the parts of the bill they want the public to see right away.

ROBERTS: All right. So that takes -- that all goes into effect within the next six months in varying degrees. But what about some of the other changes coming down the line that will not take effect immediately, in fact, changes that may take years?

ACOSTA: Right. And these are the toughest part of the bill to implement. The biggest parts of this legislation will not take effect until 2014.

Take the mandates. President Obama campaigned against mandates when he was running for president. Now he's for it. In 2014, almost every American is going to be required by law to buy health insurance. If you don't, you'll pay a penalty somewhere in the neighborhood of $750. There are some exceptions.

Now, those penalties are also there for large businesses if they don't cover their workers. Now, another piece of this legislation that is also crucial is this idea of an exchange, a new insurance marketplace for the uninsured and small businesses. If you can't get health care because you have a preexisting condition, you'll be able to go to your state health exchange. Massachusetts has something like this set up right now. And Medicaid, this is a big part of the legislation that doesn't get a lot of air time. Medicaid will be expanded dramatically, the $16 million people, John, when the House talks about 32 million people covered, half of those people come from this big expansion of Medicaid.

ROBERTS: All right. So how was all of this going to be paid for? Will people see their taxes rise?

ACOSTA: No, not everybody is going to see their taxes go up. But, those high insurance, high cost insurance plans that some people do have, those plans will be taxed. That's that Cadillac health care plan tax that was talked about so much during all of this. That does not take effect in the Senate legislation that was passed until 2014.

There's also a hike in the Medicare payroll tax. That's the payroll tax that comes out of our paychecks every couple of weeks. That only applies to wealthier Americans. So if you make $200,000 a year or more as an individual or $250,000 a year or more as a family, that tax will go up for you but that does not take effect until 2013.

There are some things that happen sooner. There are cuts in the growth of Medicare that will occur over the next 10 years. And get this, the folks who go to tanning salons won't like this. There is a tanning salon tax that starts this year, John. If there is one tax that starts this year, it will be the one affecting folks who go to the tanning salon.

ROBERTS: Hey, Jim, just one point here and maybe just the early nature of the hour here. But I thought that the tax on the so-called Cadillac, what Nancy Pelosi called the platinum Rolls Royce plans kicked in 2018, not 2014.

ACOSTA: That's right. That's right.

ROBERTS: All right. So the graphic was incorrect there?

ACOSTA: Well, no, it was correct in this. In the original Senate legislation that was passed, and this is why it's crucial, that tax does not take effect until 2014. But the House also passed a fix bill, John, that the Senate must act on. And if the Senate acts on that fixed bill, then that Cadillac or Rolls Royce tax on high cost health care plans won't take effect until 2018.

But until the Senate passes that fix and it's not a given that they will because Republicans are promising to pull out all the stops to block this in the Senate, it's the original Senate version of this legislation that will be the law of the land as soon as the president signs it, John.

ROBERTS: All right. Jim, thanks for the clarification. I think it was the graphic that was a little confusing there. Thanks so much.

Check out CNN.com for more on how this bill will impact you. There's an interactive feature there that explains when exactly all of these changes will go into effect. CHETRY: Well, after President Obama signs this bill, senators do have some work left to do. As Jim was just alluding to, they will now go over the changes that the House made to their version of health care reform. Democrats will then use the much talked about reconciliation process. That's the process in which only 51 votes are required for passage in the Senate rather than the 60 needed to break a filibuster. So the compromise bill actually raises the total cost $65 billion, but also would lower the deficit, projected deficit by $25 billion.

Changes also include scaling back the Senate's planned tax on so- called Cadillac high end insurance plan. This is what Jim was also just talking about to $10,200 for individuals and $27,500 for families.

And the new bill lowers fines for Americans who don't have coverage by 2016, from $750 to 650. Also the so-called "Cornhusker kickback" is gone. It was one of the backdoor deals included in the original bill, $100 million dollars in Medicaid funds for Nebraska. It also closes the gap known as the "doughnut hole" for prescription drugs covered by Medicare.

ROBERTS: And how do you think that this reform is going to impact you? We want to know. Share your stories with us. Go to our live blog at CNN.com/amFIX. We're up and online right now, and tell us your story.

And coming at our next half hour, we're going to check in with John Zarrella. He's talking to regular Americans on how this health care reform will change their lives.

CHETRY: Also, stay right here for continuing coverage of health care reform, including the latest show in our prime time lineup. Catch the premiere of "JOHN KING, USA." It's tonight, 7:00 p.m., only on CNN.

ROBERTS: Well, let's get a quick check of this morning's weather headlines. Rob Marciano in the extreme weather for us this morning.

Good morning, Rob.

ROB MARCIANO, AMS METEOROLOGIST: Good morning, John. Good morning, Kiran. Hope you had a great weekend.

We have a pretty big storm that's rolling across the United States. It brought snow to places like Denver. Well, it's not such a big place. But places like Oklahoma City, northern spots of Dallas as we head into the first weekend of spring.

There it is spinning over Nashville and Memphis, wrapping in some rain and some cold air. Even a little bit of snow trying to mix in across the Deep South. But we don't expect any sort of accumulation but some flakes flying. That's a possibility just to keep the kids excited as we head towards summer break.

All right. Some showers getting into the D.C. and the New York area. If you are flying today, Boston and New York metros and Philly and D.C. will have some delays. We don't think there will be much more than 60 minutes, but nonetheless the usual spots there.

We'll talk more about the storm as it progresses to the east later on in the program. John and Kiran, back to you.

ROBERTS: Yes, I can tell you, it's a heck of a storm too. I got to live through it last night with the rest of you, Rob.

CHETRY: Ouch.

ROBERTS: Yes.

MARCIANO: Yes, it came through Atlanta pretty hard. It will be a little more tranquil here.

CHETRY: So how long was the delay?

ROBERTS: I walked in my front door at 10 minutes to 2:00 this morning.

CHETRY: Just in time to shower and come here.

ROBERTS: Just in time to shower and come to work.

CHETRY: Yikes.

ROBERTS: Still to come on the Most News in the Morning, they are so sophisticated they're called computers on wheels. Could electronics be to blame for Toyota's problems? Questions still remain.

Stay with us. Eleven and a half minutes after the hour now.

(COMMERCIAL BREAK)

ROBERTS: Wow. There is a blast from the past. "Blitzkrieg Bop" with The Ramones. It's 14 minutes after the hour. That will wake you up.

For decades, it was the automaker that stood for quality. But these days, Toyota is struggling to regain its customers' trust after problems with gas pedals and vehicles speeding out of control.

CHETRY: And now Toyota is maintaining that faulty electronics are not to blame for any problems. But, of course, not everyone is convinced of this.

Our Deb Feyerick joins us now live with an "A.M. Original", and a lot of questions remain. And this is a big deal for Toyota, because if it goes as far as -- as to be able to encompass electronics, they have a much bigger problem on their hands than just gas pedals --

DEB FEYERICK, CNN CORRESPONDENT: Yes. There's no question.

CHETRY: -- or floor mats. FEYERICK: Once you've put out that it's a possible theory, well, then, again obviously, it gained a little bit of momentum. And this morning Toyota is releasing a tape showing that it is rigorously retesting its electronic systems to ensure that its cars are safe.

So, why, then, are there so many questions and theories as to what's causing the sudden unintended acceleration? We spoke to a Toyota engineer exclusively.

(BEGIN VIDEOTAPE)

FEYERICK (voice-over): This video from Toyota is supposed to make millions of drivers feel better. It shows Toyota engineers blasting this car with electromagnetic waves to see if it will malfunction and suddenly accelerate.

KRISTEN TABAR, TOYOTA U.S. ELECTRONICS MANAGER: We have millions and millions of hours of testing.

FEYERICK: Kristen Tabar is head of Electronics at the Toyota Technical Center in Michigan. We met up with her in Washington, D.C. where she was meeting federal regulators investigating U.A., short for unintended acceleration.

TABAR: I have no doubt whatsoever that U.A. is not being caused by the electronics. Our testing is so extensive and so deep that I am very confident that the electronics is not causing the U.A.

FEYERICK: In fact, lately, when it comes to Toyota and its electronics, confident is a word you hear a lot.

UNIDENTIFIED FEMALE: I'm absolutely confident.

UNIDENTIFIED MALE: We're confident.

TABAR: We're very confident.

FEYERICK: But safety advocates like Clarence Ditlow are not.

CLARENCE DITLOW, THE CENTER FOR AUTO SAFETY: As the cars have gotten more complex electronically, we're having more and more random failures in systems, ranging from the brakes to the throttle to the steering --

FEYERICK: Fifty-three people have died. Thousands more complain their cars took off and the brakes did nothing.

Toyota has recalled 8 million vehicles, blaming floor mats and sticking gas pedals. Yet, more than half the complaints of sudden acceleration were for cars not part of those recalls.

FEYERICK (on camera): If it's not the gas pedal and it's not the floor mat, which appears to be the case in some of the vehicles.

TABAR: Yes. Certainly we've taken our -- our countermeasures for the mechanical issues, the pedals, the sticky pedals or floor mat issue. We've also done exhaustive testing on the electronics, so, certainly, we have ruled out or tried to rule out those items.

FEYERICK (voice-over): Today's cars are like computers on wheels. Yes, there are many more safety backups, but when you step on the gas pedal --

DAVID CHAMPION, DIRECTOR, CONSUMER REPORTS AUTO TEST CENTER: There's a set of wires here that go across to a electronic control unit that controls everything in the engine.

FEYERICK: It's almost like a virtual driving experience.

So far, Consumer Reports auto tester David Champion says he's seen no hard evidence of a problem with Toyota's electronic throttle.

CHAMPION: That doesn't mean to say that there isn't a problem there. It just means that we haven't found one yet.

FEYERICK: Safety advocates like Ditlow say complaints of unwanted acceleration doubled or tripled after the electronic throttles were installed in certain models, like the 2002 Camry, among others.

FEYERICK (on camera): What's not to say that -- that it isn't the electronics?

TABAR: These electronics, the information is hard coded in, and we do all kinds of software testing to understand if there's any software glitches or any issues that would affect the quality of the parts. And, again, through all of that testing, we've found no evidence of that.

(END VIDEOTAPE)

FEYERICK: Now, there are some theories that maybe it's just a perfect storm, where whatever can go wrong does and there's nothing anyone can do. That's why safety experts are pushing for a brake override system in all cars with electronic components so when the brake is applied at the same time as the gas, the brake wins.

CHETRY: All right. Deb Feyerick for us with the latest on the ongoing saga for Toyota and its customers. Thanks so much.

FEYERICK: Of course.

ROBERTS: All right. We are about 19 minutes after the hour now.

Coming up next on the Most News in the Morning, last night's vote doesn't mean only big changes for health care, we'll tell you how it could also change how students can get loans for college.

Stephanie Elam in this morning, "Minding Your Business." Stay with us.

(COMMERCIAL BREAK)

CHETRY: Well, it is 22 minutes past the hour. Time for "Minding Your Business."

We have Stephanie Elam with us this morning, in for Christine Romans. Good to see you.

STEPHANIE ELAM, CNN BUSINESS CORRESPONDENT: Good morning.

CHETRY: And you're talking about some changes for college students trying to secure some student loans.

ELAM: Right. There was a lot going on on Sunday, especially down in Washington, but there's other things going on that you may not have heard so much about, and this will affect students.

And this is a big change here, the House again voting along party lines, but what's going to happen now is that you're going to see all federally backed student loans coming from the government now. This is -- they'll be direct from the federal government, and it makes Washington a one-stop shop for cheap student loans.

They've also boosted funding for need-based scholarships, and this is another one of President Obama's action item. So it cuts out the bank middleman and therefore makes education loans guaranteed by the federal government, all of them coming direct from the government. If it's passed, it will save $61 billion over 10 years, according to the Congressional Budget Office.

It also increases Pell Grants, which were facing a huge short fall to $5,900 by 2017. So that's another change that you'll see there.

Now, the Senate is expected to take this up in the next few days. They're also expected to pass it at this point. The new system would start in July and the government would make about $500 billion in direct loans in the first 10 years. This, again, coming from the Congressional Budget Office.

Now, critics of this overhaul measure are saying that there's a few problems with this. One, you shouldn't just cut out the banks like this because if you do it could cost them jobs in the end. And, also, you have more wagering over who's giving out the best option. That's what they're saying.

They're also saying that the government right now just does not have the manpower to get all of these loans out there to the people, so that's another concern that they have.

So you have a lot of people who are pointing out some of the -- the problems with it. They're saying who's going to really be there to take care of all of this direct funding, and others saying this is just going to make it better because if they're coming from the government, then it's better for the students because there will be less middlemen to just take those subsidies and take their cut out of the deal.

CHETRY: The middlemen claim it's 35,000 jobs that would be lost under this. ELAM: Right.

CHETRY: So maybe they can apply to the federal government. I mean --

ELAM: They can (INAUDIBLE).

CHETRY: -- they're going to need to hire some people, right?

ELAM: They probably already understand it intricately on how to put these together. But, yes. And so, it would be something to watch.

But, keep in mind that some of these things could change because the Senate has to go ahead and vote on it as well. So there could be some more changes ahead.

ROBERTS: Stephanie, thanks. Stephanie Elam, "Minding Your Business" this morning.

CHETRY: Coming up on the Most News in the Morning, has the health care debate damaged politics in Washington for good? Carol Costello with an "A.M. Original" next.

(COMMERCIAL BREAK)

ROBERTS: Playing some great music this morning, you know? Really. Seriously? For a Monday morning? It's terrific.

Twenty-seven minutes after the hour. Top stories just minutes away. But first, an "A.M. Original", something that you'll see only on AMERICAN MORNING.

In the days and weeks before health care was passed, things in D.C. got nasty -- really nasty, and that all came to a head over the weekend.

CHETRY: Yes. Some of the protesters being accused of using racist and homophobic slurs against some lawmakers. One House Democrat even says that someone spit on him.

It's been a pretty rough time inside the capital as well, so has this debate changed politics in D.C. forever?

Our Carol Costello is live in Washington for us this morning. Good morning, Carol.

CAROL COSTELLO, CNN CORRESPONDENT: Good morning, John. Good morning, Kiran.

It has been so ugly and so bitter. If the health care debate was a conversation, it would -- it would look something like this. Take a look.

This is a word cloud. It's -- it's full of words that confused and sometimes really angered voters. The question this morning, has this become the norm?

(BEGIN VIDEOTAPE)

COSTELLO (voice-over): The journey to health care reform, in the president's words, has been a --

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: I know this has been a difficult journey.

COSTELLO: Really? Some might say that's the understatement of the year.

UNIDENTIFIED MALE: Whether you call it a death panel, whether you call it a commission.

UNIDENTIFIED FEMALE: We were all for a public option.

UNIDENTIFIED MALE: What you're doing on health care is the nuclear option on steroids.

OBAMA: And I believe the Congress owes the American people a final up or down vote on health care reform.

COSTELLO: The debate over health care reform has been so emotional and at times so overwrought, some suggest it's changed our political culture for good.

DREW WESTEN, CLINICAL, PERSONALITY AND POLITICAL PSYCHOLOGIST: No, I think Americans this year saw the sausage being made in a way that they really haven't seen it made in real time before, and -- and it didn't smell very good.

COSTELLO: That smell sent approval ratings south. A recent Pew Research study shows the most frequent one word descriptions of Congress include dysfunctional, corrupt, and inept. And analysts say there is a real sense lobbyists, big business and unions are buying votes.

WESTEN: The way they're running it now, this doesn't look like a democracy anymore. This looks like let's find the golden mean between the public interest and the bankers' interest, and that -- that doesn't sit well with most Americans.

COSTELLO: The country's disdain for politicians and in part health care reform erupted in passion at town hall meetings.

UNIDENTIFIED MALE: Disruption never helps your cause.

COSTELLO: That gave rise to Tea Parties and charges of socialism. It also solidified in some voters' minds Republicans belong to the party of no and Democrats to the party of dysfunction.

GOV. RICK PERRY (R), TEXAS: States' rights.

COSTELLO: Health care reform also in part prompted at least 20 state legislatures to consider resolutions reasserting states' rights. SEN. SCOTT BROWN (R), MASSACHUSETTS: I'm nobody's senator. I am nobody's senator except yours.

COSTELLO: It cost Democrats a Senate seat in Massachusetts, and certainly gave new meaning to saying what you mean.

REP. JOE WILSON (R), SOUTH CAROLINA: You lie!

(BOOING)

COSTELLO: Who can forget Congressman Joe Wilson's first time in history shout-out in a joint session in Congress? If you're nodding and wondering not if the political culture has changed, thanks to health care reform but how voters will react?

DREW WESTEN, AUTHOR & EMORY UNIVERSITY PROFESSOR: You can become cynical and not show up at the polls in November or they're going become angry and someone is going to use that anger as motivation to change the rules of the game.

(END VIDEOTAPE)

COSTELLO: John and Kiran, politics has always been a bitter game and people have not much liked politicians. It's not exactly that, you know, a politician has been a favorite among Americans. But the rhetoric during this health care debate, over the year, has become so bitter and so partisan.

We wondered this morning: has it changed our political culture for good? Has it taught you anything about politicians, about how the system works, and about what needs to be done?

We want to know what you think this morning. CNN.com/amFIX, write to me on my blog. I'd love to know what you think. Do you think politics has changed for good because of the bitter nature of this health care debate? CNN.com/amFIX -- John and Kiran.

ROBERTS: Great story this morning, Carol. And we also look forward to what you're hearing on your section of the blog because we've asked people to ring in.

And here's some of what we're hearing so far. PeggyT (ph) writes us to say, "How is this bill supposed to help those who cannot afford health care? The lawmakers need to get out of their offices and take a look at real life. How does any reasonable person expect to collect $650 in fines from someone who cannot afford health care in first place? What's wrong with you people?"

Of course, there's a provision though for people in poverty who absolutely cannot afford health care that they will not be fined.

CHETRY: Meantime, we have more. Jessica, she is also taking part in our live blog which you can hit at CNN.com/amFIX.

She writes, "I'm a 21-year-old college senior on my mother's insurance. As of now, I have yet to find post-graduation employment. And one of my biggest fears upon graduation, I would be forced into the world with no job and no health care. With this reform, I have one less thing to worry about."

ROBERTS: All right. So, keep your cards and letters coming this morning. Love to hear from you. What was the address? CNN.com/amFIX.

CHETRY: Yes, and I think there's a live blogging button that you click in.

ROBERTS: Excellent. All right, do that for us.

Crossing the half hour, that means it's time for this morning's top stories.

The president's signature and one more Senate vote, the only obstacles now remaining for health care reform. The House passed the Democratic measure last night without a single Republican voting for it; 34 Democrats voted against it, too -- we should point out. The president plans to sign it quickly then the Senate gets to vote on a 153-page package of amendments to make the deal final. The measure insures 32 million Americans who currently do not have coverage.

With Americans focused on the health care vote, Tiger Woods took the next steps toward repairing his image. In his first television interview since the sex scandal, Woods admitted that he has been, quote, "living a lie," and says he's nervous about fan reaction when he returns to the pro golf tour beginning next month at the Masters.

And a sigh of relief. So far, there's no major damage in Fargo, North Dakota, after the Red River crested about -- at 19 feet above flood stage. Officials say all sandbagging and preparations worked this time. Last year, record level flooding sent thousands of people scrambling for higher ground -- Kiran.

CHETRY: Certainly good news this year -- at least much better than things turned out last year.

Well, it's 33 minutes past the hour right now.

It's something parents and teenagers and pre-teens are probably aware of, and there's those who aren't and should be. More and more kids are "sexting" -- meaning sharing either provocative or sexually explicit pictures or messages over their cell phone. But in most states, sexting is considered child pornography and your kids who think they're just doing something harmless among their friends can actually be prosecuted as sex offenders.

So, are the current laws too harsh? Are they not changing with the times? How do you make the punishment fit the crime?

Joining us to talk about it: Attorney Paul Callan. He's a professor of media law at Seton Hall University as well.

Good to see you, Paul.

PAUL CALLAN, PROFESSOR OF MEDIA LAW, SETON HALL UNIVERISTY: Nice to be here.

CHETRY: And, also Parry Aftab. We have her with us well -- executive editor of WiredSafety.org.

Great to have you with us as well.

PARRY AFTAB, SECURITY, PRIVACY & CYBERSPACE LAWYER: Thank you.

CHETRY: So, let me throw up this graphic and to show you. The studies show right now that one in five teens have either sent or received some sort of provocative text or photo. And we're talking a look at this. When we talk about I guess being behind the times when it comes to understanding what our kids are up to, how big of a problem, Parry, do you think sexting is in general?

AFTAB: Well, sexting is a bigger problem than one in five. MTV and "Associated Press" did a poll that showed about 1/3 of kids have received or sent one. And it's not words. So, when you're sending provocative discussions -- that doesn't count. It's only images, a much bigger problem than people realize and much bigger than even the 1/3 that's reported in the polls. We're finding 10 percent come unsolicited by boys who are saying this is what you'll get if you start dating me.

CHETRY: And one of the interesting things about it is the laws have not kept up with the times. I mean, kids can engage in consensual sex, they are not being prosecuted for that. We're not saying it's right. But they're not being prosecuted for that yet, in this case, under statutory rape laws. But if you swap these -- as Parry is talking about -- these sexting messages, you can actually be tagged for life as a sex offender.

So, how do we tackle this state by state?

CALLAN: Yes, people would be stunned to know that if their child sends a text message with a graphic image of a child and it could be a fellow friend, it could be one girl sending a picture of another girl to a friend, they could be labeled for life as sex offenders under some of the laws in the United States. So, the laws haven't kept up-to-date with the technology or the change in cultural mores. And I think there's got to be some way to change this because -- on the one hand, we want to prevent child pornography but we don't want to label our children for life as sex offenders when they make a stupid adolescent mistake.

CHETRY: And as we've seen, there are some states that are actually changing their laws because of this. We have 14 more that are looking to do that quite soon. What do you think, Parry, is the solution to find a middle ground, as Paul said, to make sure that, you know, you're catching the right people?

AFTAB: Well, I think we're both lawyers, and for to us agree that means there's something here. You need to understand there are federal laws that apply across the board. And unless we tackle those, changing state laws won't make a difference on what's happening. But if you get a prosecutor who's out there deciding he's going to prosecute somebody because they've got a bra showing at a slumber party for child pornography, now we got a real serious problem.

So, we need to educate the kids and let them know consequences. And that means if you take a picture of yourself and you're underage send it or possess one, you could be held liable, and be tagged as a sex offender. You need to make sure that the technology companies know what to do so they are educating everyone about the right and wrong use of their technologies. Schools need to know when these images surface that they shouldn't be shared.

We have to treat them in the same way we would narcotics. Special rules, special handling, and prosecutors and cops need to know when it's consensual between you and your boyfriend and no place else, and when it started to spread like wildfire.

CHETRY: And you believe, Paul, that it can be tackled state by state.

CALLAN: Well, I think it can be. But I think each state has to focus on it. Everybody has to understand that, you know, we try to solve the child pornography problem in the United States by coming up with the sex registries. And now, all of a sudden, they are being used to tag 15-year-old, 14-year-old children who are playfully exchanging things on their cell phones.

Every state legislator in America has to look at the laws of their individual state to see if they apply. One of problems with federalizing this, and I think it's got some merits to say we should have a national law --

AFTAB: We need to do -- we need to do both.

CALLAN: But it would overwhelm the federal courts. I mean, think about how many cases they would be looking at if it was a federal misdemeanor to send a sexually explicit text message. So, I think federal laws, we can make some changes. But it's probably really got to be solved on a state level.

AFTAB: Well, if you send an image and you're underage, federally, it is a crime right now as child pornography. So, already the courts are involved. And the third circuit court of appeals has just ruled that under certain circumstances, you may not be able to charge a teen as a registered sex offender for having a naked picture, not having proof that you sent it, possessed it, or took it yourself voluntarily. So, it's a tricky issue --

CHETRY: Right.

AFTAB: -- we need to deal with a lot of ways.

CHETRY: You know, we can't just blame it on technology. I mean, when we were growing up, there were Polaroids. I mean, you could take photos of yourself. This -- I mean, we didn't do that.

(CROSSTALK)

CHETRY: Why is it -- why somehow --

CALLAN: Here's the difference. You know, here's the difference.

CHETRY: What do we have to do as parents, as educators in the community, to let kids know, this can haunt you for life?

CALLAN: Well, they -- you know, they call it, there's a good word for it now. They call it a digital tattoo. Once that picture gets on the Internet, you are tattooed forever more. Someone else is going to find it. And if your kid sends something out, you have to worry about that digital tattoo.

But I think the real difference is, when we were younger, when a 14-year-old was talking to a 15-year-old that was taking place in a telephone conversation, maybe explicit things were said in a conversation, nobody was listening. Now, they text. They don't talk on the phone. And they send pictures when they text. So, their method of social communication has changed completely and the law has not changed to keep up with it.

AFTAB: There's some technology. Taser, the guys who have that zapping thing that police used has a new technology that will launch this summer that will allow parents to see what images their kids are sending and receiving. A, we need to really get out there and educate them.

We have a program the teens have created called "Don't Be Stupid." And that will be launching. At the same time the kids have put it there, we've got videos and all kinds of things.

We need to recognize that its images not words. That's what qualifies it as child pornography. And these are very serious charges. And we can't have justice administered on a case by case basis with one judge or prosecutor seeing it as a serious felony, and the other one as slap on the wrist.

CHETRY: Right.

CALLAN: You know, I also think the education thing is critical as Parry said --

CHETRY: Right.

CALLAN: -- because kids don't know they are violating federal laws and they're going to be -- they're going to be labeled for life if they make these mistakes.

AFTAB: Two-thirds are coerced into taking these pictures.

CHETRY: And that's an important issue as well. So, you know, guys, have these conversations with your children for sure.

Parry Aftab and Paul Callan, thanks to both of you.

AFTAB: Thanks.

CHETRY: We're going to take a quick break. Forty minutes past the hour.

AMERICAN MORNING will be right back.

(COMMERCIAL BREAK)

CHETRY: Welcome back to the Most News in the Morning. Forty- three minutes past the hour.

Fiery response last night from House Minority Leader John Boehner. He said that the House-approved legislation failed to give Americans what they wanted and what they asked for.

ROBERTS: So, what is the reaction that's coming from average folks out there?

We're heading to Fort Lauderdale, Florida, this morning. Our John Zarrella is sitting down with the breakfast crowd at Lester's Diner. He joins us now.

Good morning, John.

JOHN ZARRELLA, CNN CORRESPONDENT: Good morning, John and Kiran.

Now, Lester's Diner over the years, all of the worlds problems have been solved here, and certainly, health care is another one that they've been talking about today. And let me just wander over here now.

Jeanine, you finished breakfast already. Let me ask you -- you're a health care professional, right?

JEANINE SULLIVAN, INDEPENDENT VOTER: Right.

ZARRELLA: In pediatric physical therapy, I think, you'd say?

SULLIVAN: Yes.

ZARRELLA: What does this mean to you, this bill?

SULLIVAN: It means to me that many of the families that I work with, hopefully, instead of having to mortgage away their house or to work three, four or five jobs in order to pay for the health care for their sick children, it won't have to be such a burden on them any more.

ZARRELLA: And so, clearly, you're in favor of it.

SULLIVAN: Absolutely.

ZARRELLA: But personally, does it affect you at all? Do you think it's going to have any impact on you?

SULLIVAN: You know what, my family, my husband and I were lucky to enough to be employed full-time and to have insurance at this time. So, a direct impact on me and my family? No.

ZARRELLA: But, it's what you see every day in your job.

SULLIVAN: But it's what I see every day in my work. And any time that anything could help a child in need and a sick child is going to make our country a better place.

ZARRELLA: Jeanine, thanks so much. I'm going to wander back one table here.

And -- hey, Jay. How are you? Jay Morgenstern (ph). And, Jay, we got about a minute left. To you, are you in favor of this as well?

JAY MORGENSTERN, FLORIDA VOTER: Yes, I am.

ZARRELLA: Why?

MORGENSTERN: Because there's a lot of people in this country that either don't have insurance, can't afford insurance or under- insured, and I think this is going to close that gap.

ZARRELLA: And it, personally for you and your wife sitting here having breakfast, does it affect you guys directly at all, do you think?

MORGANSTERN: Not so much directly, because we do have health insurance provider from our employer, but it will help us with our college age children.

ZARELLA: That way it'll extend the amount of time they can be on your policy.

MORGANSTERN: That don't have us, yes.

ZARELLA: Jay, thanks so very much. Now, you know, we also talked to a few other people who told us they were against it. They said that it was too much government interference and was pushed down the throats of the American people but those folks really did not want to go on camera with us to give their opinions -- John, Kiran.

(END VIDEOTAPE)

ROBERTS: All right. John Zarrella for us this morning at the Diner, and John, we'll check back with you a little bit later on to see how the opinion is running today after health care reform has passed in the House. Thanks so much, John.

And how is this reform going to impact you? We want to know. Share your stories with us right now. Go to our live blog at cnn.com/amfix. Join the conversation and tell us your story.

CHETRY: Forty-six minutes past the hour. Rob Marciano is going to join us with a look at this morning's travel forecast after the break.

ROBERTS: And at 10 minutes time, you've seen those YouTube sensations. Jeanne Moos shows us how people are now able to cash in on their 15 minutes of fame.

(COMMERCIAL BREAK)

CHETRY: Welcome back to the AMERICAN MORNING. Forty-nine minutes past the hour right now as we take a look at New York City.

ROBERTS: Wow. Is that a cloud right through the middle of the Empire State Building?

CHETRY: Cool, actually. It's a 51 degrees and cloudy. A little bit later, though, bring your umbrella if you're heading out. It's going to be nearly 60 for a high much of the spring today.

ROBERTS: Torrential as downpours today. We'll be so bad you invent words to describe them. Time now for your AM House Call. Lays Potato Chips are going to be getting a healthier dose of salt. The Pepsi Company is trying out a new powdery designer salt. It's a big trade secret that promises to cut sodium levels by some 25 percent. The government is pressuring manufacturers to cut sodium for process food to lower the risk of heart disease. Health experts say most Americans eat twice the daily recommended limits. It's because salt is in everything.

CHETRY: That's right. I mean --

ROBERTS: Everything.

CHETRY: They're not putting less salt in.

ROBERTS: There's even salt in sweat for Pete's sake.

CHETRY: Yes, like they're reformulating it so that your body doesn't absorb as much. We'll see how that works out because --

ROBERTS: Big trade secret.

CHETRY: Yes. When they tried to do that with the no fat-fat, remember how that turned out? Not so well for some. Let's get a check at this morning's weather headlines. Rob Marciano is in the Extreme Weather Center. You know what I'm talking about, right?

ROB MARCIANO, AMS METEOROLOGIST: Yes.

CHETRY: Sometimes, there's no replacement for the real thing.

MARCIANO: And that what your body doesn't absorb passes through.

CHETRY: That's right.

MARCIANO: We've got a low pressure system that's rolling through the Midwest today. This is the storm that brought the snows to Denver. That's not such a big deal. It was a great to deal for the skiers across Colorado, but it also brought snow to Oklahoma City and through parts of Dallas.

Check out this video from an iReporter. It's a winter scene on the first day of spring. Do you believe that? Thanks for sending this in, Patricia. Not only Oklahoma City getting a little bit of snowfall over the weekend, but they continue to get rocked by these little earthquakes rumbling around. Twos and threes kind of keeping folks on their toes. Obviously, not enough to do any damage but enough to, I don't know, maybe shake the branches on the trees there to get that snow to fall out.

This storm is kind of beginning to wind itself out a little bit, but it does have a cold core. Temperatures are into the 30s down across the south from Birmingham, back through Atlanta. So, it's chilly at the start of your day and even a little precip trying to mix in the form of snow flakes. So, folks across the mid Deep South might see some snow today or at least flakes mixing, but it's not going to be accumulating. All right. A mild rain, this rain will begin to increase across the New York area and especially tonight and tomorrow, and the winds will increase as well.

So, we'll start off with some delays across most of the northeastern major metropolitan airports, and I think, tomorrow will be a worst day for that. Forty-six in Atlanta; meanwhile, 61 degrees in New York. So, you guys are enjoying the warm air. Enjoy.

CHETRY: That's right.

ROBERTS: Warm air but rain, too.

MARCIANO: Yes.

ROBERTS: So, the Lord give it, the Lord take it away.

MARCIANO: Yes, with the good comes to bad.

ROBERTS: All right. Thanks, Rob.

CHETRY: At least, we had a sunshine for the weekends. We can't really complain.

ROBERTS: It was a good weekend.

Two minuets after the hour. We'll be right back. Stay with us.

(COMMERCIAL BREAK)

ROBERTS: It's five minutes now to the top of the hour which means as does every morning that it's time for the Moost News in the Morning. Some of YouTube's greatest hits and become genuine money makers for some people.

CHETRY: Our Jeanne Moos shows us how people are cashing in on their 15 minutes of viral fame.

(BEGIN VIDEOTAPE) JEANNE MOOS, CNN NATIONAL CORRESPONDENT (voice-over): If your kid is extra-cute telling mommy how he doesn't like you all the time --

UNKNOWN CHILD: I love you too, but I don't like you all the time.

UNKNOWN FEMALE: Okay. Thanks.

MOOS: You can make a bundle if you shot say those otters holding hands. It used to be that YouTube only shared ad money with people like this. Fred constantly pumped out popular videos. He was sort of a semiprofessional, crazy content provider. Now, it's the return of the one-hit wonder that YouTube videos that come out of nowhere and become internet sensations. Remember David after the dentist, still loopy on anesthesia.

UNKNOWN CHILD: Is this real life?

UNKNOWN MALE: Yes, that is real life.

MOOS: Money generated from ads for not surprisingly dentist, though, the ads for a dating service that finds senior men left us scratching our heads. Now, it's open to everyone. Take this famous safari video. A baby buffalo gets caught by lions, chewed on by crocodiles, and rescued when the buffalo herd returns and turns the tables on the lions.

The tourist who shot this, the one on the burgundy shirt, let a partner handle the video and didn't even know it was getting ad money until we told him about David after the dentist. The folks at YouTube decide if your one-hit wonders doing wondrously enough to merit ads, they send you this invite.

UNKNOWN MALE: We're looking for, overall, viewership. So, does the video attracted a lot of viewers.

UNKNOWN KID: Ouch! Charlie! that really hurt.

MOOS: Now, Lipitor is advertising alongside Charlie's finger bite.

UNKNOWN MALE: I think it's great. I think it's really great.

MOOS: So does your son.

Jeanne Moos, CNN, New York.

(END VIDEOTAPE)

CHETRY: Poor kid.

ROBERTS: The ultimate reality show now, isn't it?

CHETRY: No, but we --

ROBERTS: You make money on that stuff.

CHETRY: They're all going to make fun of him for that, poor thing.

ROBERTS: It's a couple minutes to the top of the hour. We'll hit the top stories of the day for you coming your way in about 120 seconds. Stay with us.

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