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Hospitals Back Health Care Overhaul; G-8 Summit in Italy; GOP Questions Effect of Stimulus; Unhappy Workers Staying Put; Entrepreneurs Credit Determination for Success
Aired July 08, 2009 - 11:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
TONY HARRIS, CNN ANCHOR: And good morning, everyone. It is Wednesday, July 8th, and here are the top stories for you in the CNN NEWSROOM.
The White House health care push -- fix-up new momentum today. Major hospital groups get on board with the government overhaul.
Battle of the Titans. Google announces a new desktop operating system to challenge Microsoft Windows.
And this...
(BEGIN VIDEO CLIP)
PARIS JACKSON, MICHAEL JACKSON'S DAUGHTER: And I just wanted to say I love him so much.
(END VIDEO CLIP)
HARRIS: The stirring farewell to a global superstar. We've got your iReports on the Michael Jackson memorial service.
Good morning, everyone. I'm Tony Harris.
And you are in the CNN NEWSROOM.
Hospitals throw a lifeline to health care reform efforts. Vice President Joe Biden just moments ago announcing a multibillion-dollar savings agreement with three major hospital associations.
(BEGIN VIDEO CLIP)
JOSEPH BIDEN, VICE PRESIDENT OF THE UNITED STATES: You know, every day you see firsthand the impact the skyrocketing health care costs have had on American families. And today they've come together to do something about those health care costs.
Folks, reform is coming. It is on track, it is coming.
We have tried for decades -- for decades to fix a broken system, and we have never in my entire tenure in public life been this close. We have never been as close as we are today, and things remain on track.
We have these hospitals working with us and we have the pharmaceutical industry working with us. We have doctors and nurses and health care providers with us. We have the American public behind us. And everyone sees that we need change. And, in my view, we're going to get that change and we're going to get it this year.
(END VIDEO CLIP)
HARRIS: All right. Let's get to the bottom line on this, how this deal could impact you.
CNN senior medical correspondent Elizabeth Cohen joining me now with what we all need to know about this.
Elizabeth, let's start with how big a deal this is, really.
ELIZABETH COHEN, CNN SENIOR MEDICAL CORRESPONDENT: OK. Well, the reason I was scratching here when you first came on, I was doing a little bit of math. OK? Because health care reform is going to cost about $1 trillion.
Now, I don't know about you, but I can't really get my head around a trillion dollars.
HARRIS: I'm with you. I'm totally with you.
COHEN: I've never had a trillion dollars in my wallet. However, I have needed to eat dinner and I have needed to spend, let's say, $10 for dinner.
HARRIS: OK.
COHEN: OK. So let's look at it in that way.
HARRIS: In smaller portions.
COHEN: In smaller portions, right. It's a lot easier.
So, let's say health care reform were a $10 dinner. What the American Hospital Association has just done is they have just said, we will contribute $1.50 to that $10 dinner. Now, that's not bad, but I still need more money, in order to get that dinner.
HARRIS: Exactly. And factor this announcement in with what big pharma announced a few weeks ago, and are we getting closer to -- well, how much close are we getting to the $10 that we need?
COHEN: We are getting closer. OK, we need $10, we got $1.50 from the hospitals, we got about 80 cents from the pharmaceutical companies. That's not bad. You're getting there, but still, that is a huge gap to close.
HARRIS: All right. So, what does this really mean? What are the hospitals actually agreeing to do here?
COHEN: OK. The hospitals are saying, look, we don't like the fact that we spend about $44 billion taking care of uninsured people. Uninsured people walk into hospitals and hospitals take care of them, and they have to eat that cost. As you can imagine, that doesn't make the hospitals very happy.
So, the hospitals are saying, look, if you promise us, or promise us as much as you can that we'll have fewer uninsured people to take care of for free, then we are willing to take less money in Medicare and Medicaid payments. So, if you think of it this way, Tony, let's say I said to you, Tony, I'm going to lower your salary, you're not going to make as much money as you make now.
HARRIS: Hang on.
COHEN: But that suit you're wearing, you can get it for $50. I bet you probably paid more than $50 for it.
HARRIS: Just a little bit more. I squeaked here, yes.
COHEN: Right, exactly.
So, I'm going to say lower your salary, you're not going to make as much money, but you're not going to have to pay as much for that suit. So that's sort of in essence what they told the hospitals.
HARRIS: OK. And here's the big piece here. We still have yet to determine how much these cost-control measures being offered up by big pharma and by the hospital groups, what it really means to the bottom line on the cost of the overhaul, right? We still need to work that out?
COHEN: Right. It definitely helps, but they're going to need a whole lot more. And what I think is going to be really interesting is, what are the insurance companies going to be willing to give up? Because so far, we haven't heard from them, really. I mean, a little bit, but not a ton.
HARRIS: Insurance companies and doctors.
COHEN: Right, and doctors.
HARRIS: And you know that negotiations are ongoing with those two big stakeholders as well.
COHEN: Right.
HARRIS: All right. You're back with me in just a couple of minutes here?
COHEN: I am.
HARRIS: Awesome.
Drilling down on health care reform right here in the NEWSROOM.
You know, legislation is being considered in Congress right now. How much would it really cost? That certainly is one of the big questions, and it's causing a lot of controversy and confusion. And then the other question is, how do you pay for it?
But Josh Levs is here to break that down for us.
Where do you want to start here, Josh?
JOSH LEVS, CNN CORRESPONDENT: Well, Tony, you're right. When it comes to the hospitalization thing we were just talking about, we really don't know. But there is a bill that's being discussed already. We've been hearing a lot of figures thrown around, right -- trillions, $1.6 trillion, how much would it cost?
Let me show you what's going on. There's a three-letter term you're going to be hearing a lot in this debate. It's not HMO, it's CBO.
HARRIS: CBO, yes.
LEVS: And this is it, the Congressional Budget Office, right there. And the reason is that they are this independent arm of the government that does this analysis, that tries to figure out how much things are ultimately going to cost. They have looked at a specific plan, and I want everyone to understand this.
It's a plan being discussed in the Senate right there, the U.S. Senate Committee on Health, Education, Labor and Pensions. There's a specific plan called the Affordable Health Choices Act. And the CBO has looked at how much it would actually cost.
Let's go to this graphic. I want you to see this number.
When they looked ahead at 10 years, right, of having this plan if place, they are saying the coverage provisions in that act over 10 years would cost $600 billion. And then they took a look at something else. And this just came out last night, it's brand new.
They said if you also look at how inside this act now, Tony, they want to expand Medicaid as well, that will be another $500 billion. Let's leave that up there for a second, because I want everyone to understand something.
There you're looking at a huge sum of money, but what the CBO emphasizes is that just because it would cost that much, doesn't mean that it's going to lose that much. There will be other things in the legislation that are there to save money, designed to save money.
HARRIS: To pay for this. To help pay for this, yes.
LEVS: Right. So, what they're doing is they're analyzing the spending provisions in this act. And as it works its way through the Senate and various committees, and maybe ultimately through Congress, these are really helpful figures for lawmakers to look at, and say, OK, if the CBO is saying it's going to cost more than a trillion bucks, how are we going to start saving money to make up that deficit?
HARRIS: And will the CBO actually score the announcement that we just ahead from the vice president moments ago about the cost control measures being put in place by the hospitals, by big pharma? Will the CBO score those numbers? And that's something we need to talk about as well.
LEVS: Right. Well, as I understand it, and from what the CBO is doing, they look at each update to that piece of legislation. So what we need to look out and see is, now that this came out, right, this big announcement, Vice President Biden, does the Senate committee then go and grab it and start crunching some figures itself, putting itself inside that legislation? And then CBO can look at an update and say, OK, this is what the impact would be.
HARRIS: All right. That's great.
LEVS: But keep in mind, other stuff keeps changing, too, so any time they took a look at it, you've got new numbers.
HARRIS: Awesome. Josh, thanks for your help on this. And we'll see you again next hour.
LEVS: You got it. Thanks, Tony.
HARRIS: We will bring you more on President Obama's plan to revamp the nation's health care system. I will speak with Linda Douglass from the White House Health Reform Office live in the NEWSROOM at the bottom of the hour.
By most accounts, it was a memorial service befitting a king.
(MUSIC PLAYING)
HARRIS: Absolutely one of my favorite moments from the memorial service. The world says goodbye to Michael Jackson.
And a quick check of the market, Wall Street, the Big Board.
And as you can see, we are in negative territory. Not as bad as we were earlier, as the day got under way. The Dow down nine points.
We're following the numbers throughout the day for you, right here in the CNN NEWSROOM.
(COMMERCIAL BREAK)
(WEATHER REPORT)
(COMMERCIAL BREAK)
HARRIS: President Obama and leaders of the world's biggest economic engines are in Italy today. It's their annual G8 Summit. The meeting is in L'Aquila, a town devastated by an earthquake in April.
International Security Correspondent Paula Newton is there.
And Paula, leaders are breaking away from talks this hour, I understand, to take a look at some of the damage?
PAULA NEWTON, CNN INTERNATIONAL SECURITY CORRESPONDENT: Absolutely. It's really hard to get away from that earthquake story while you're here. That is, of course, why the Italian prime minister, Silvio Berlusconi, decided to have it here, Tony. He wanted to draw attention to the devastation, especially when you look at some of the antiquities.
People here, Tony, more than 50,000, still intense. You can imagine how tough that it is on them. And what they're trying to do is to get them into permanent accommodation by the fall. President Obama will be serving that with the Italian prime minister.
But background noise to all of this, Tony, Italians right now have quite a scandal on their hands with Silvio Berlusconi. They are used to this. Certainly, he's been prime minister three times, each of which have been plagued by scandal.
But this one, Tony, beats all. Take a look.
(BEGIN VIDEOTAPE)
NEWTON (voice-over): With his roots in showbiz, Silvio Berlusconi has always pursued what Italians call la bella figura, or making a good show of it. The G-8 meeting, his third with hosting duties, is no different, but the scandal swirling around him this time beats all, even for Berlusconi.
In an interview with CNN, Patrizia D'Addario admitted being a high-paid prostitute and is now at the center of an investigation into whether Italy's prime minister paid for sex.
PATRIZIA D'ADDARIO (through translator): I feel that I am the only one here that is here telling the things that no other woman dare say.
NEWTON: Berlusconi has denied all charges, but as lurid pictures of parties at his lavish villa hit the papers, some are now questioning not just his judgment, but whether he's fit to lead Italy.
"The Economist" magazine has always had an opinion on that. "Mamma mia" was how it read (ph) his latest election victory. And still, its editors admit...
JOHN PEET, "THE ECONOMIST": A surprisingly large number of Italians find him rather charming and cheerful, and his brushes with the law, they kind of almost sympathize with because the Italian state is not highly respected by many Italians.
NEWTON (on camera): And what has been incredibly frustrating for both the opposition and his critics is that the more gaffe prone Berlusconi seems to be, the more popular he becomes with Italians.
UNIDENTIFIED MALE: Mr. Berlusconi is a very tough man, especially when he's in the midst of a fight. And I think that he is going to be taking this G8 with the usual energy and enthusiasm.
NEWTON (voice-over): To all this, Berlusconi recently told CNN he had never committed a gaffe. SILVIO BERLUSCONI, ITALIAN PRIME MINISTER (through translator): I have never made any gaffes, not even one. Every gaffe is invented by the newspapers.
(END VIDEOTAPE)
NEWTON: Newspapers don't have to invent this, Tony. A lot of times the cameras are rolling. But Berlusconi says this is all part of his charm. He keeps reminding us, Tony, that his approval ratings throughout all of this has only slipped really a few points -- Tony.
HARRIS: Let's pivot from the Berlusconi story. And is it true, Paula, that a basketball court has been set up there for President Obama?
NEWTON: Well, you know, authorities refused to confirm or deny it, but I have seen some pictures of it. And you know when you bring in, you wheel in those basketball nets? You know, they're kind of hydraulic and...
(CROSSTALK)
HARRIS: Right. Right.
NEWTON: Apparently, just here to my left. It's in a parking lot. I mean, you've got to think of this as a military barracks. And like you would anywhere, if there's a net, even if you're outdoors, al fresco, you're going to play a little bit. And I think they are hoping that Obama takes advantage of it when he wants to relax in the evening. He will be here for two nights, so it will be interesting.
Another things to throw in here, though, Tony, is that this region is still suffering aftershocks. They had a pretty big one on Friday. So, a lot of different factors may play into that basketball game, if he does have one tonight or tomorrow.
HARRIS: Boy. Well said.
All right. Paula Newton for us.
Paula, appreciate it. Thank you.
Chinese president Hu Jintao abruptly left the G-8 summit today to handle a crisis at home. A reported 20,000 paramilitary police rolled into the capital of Xinjiang Province today. The huge show of force is designed to crush fighting between ethnic Han Chinese and Muslim Uighurs. Street violence this week has left more than 150 people dead in China's far west. Some 1,400 people are believed to have been arrested.
So, a day after Michael Jackson is eulogized, CNN has learned some disturbing new details about what investigators found when they arrived at Jackson's home 12 days ago. Here's what we know.
A source inside the investigation tells CNN Jackson was emaciated, his arms riddled with track marks, veins in both arms were collapsed. And numerous bottles of "dangerous drugs" were found in the home. The source also says his body was paper white from head to toe and he was bald.
We won't know the cause of death until a toxicology report is completed.
Did you watch the memorial service? Millions of people tuned in yesterday to celebrate the life of Michael Jackson.
Here are some moments to remember.
(BEGIN VIDEO CLIP)
P. JACKSON: I just want to say, ever since I was born, Daddy has been the best father you could ever imagine. And I just want to say I love him so much.
BROOKE SHIELDS, ACTRESS: Both of us needed to be adults very early, but when we were together, we were two little kids having fun.
JERMAINE JACKSON, MICHAEL JACKSON'S BROTHER (singing): When there are clouds in the sky you'll get by if you smile...
MARLON JACKSON, MICHAEL JACKSON'S BROTHER: We will never understand what we endured -- not being able to walk across the street without a crowd gathered around him, being judged, ridiculed. How much pain can one take?
Maybe now, Michael, they will leave you alone.
(END VIDEO CLIP)
HARRIS: So those are some of our favorites. Now tell us which one is yours.
Go to my blog, CNN.com/Tony, and take your pick. We will check the results next hour.
As you probably expected, Michael Jackson's albums flew out of the stores in the first full week after his death. More than 650,000 were sold, another 144,000 downloaded from the Internet.
SoundScan charts this morning lists Jackson's "Number Ones" collection as the top seller, followed by "Thriller" and the newly released "NOW! 31."
So many of you have shared your stories of how Michael Jackson affected your life.
From CNN.com's iReport desk -- where is Tyson? Producer Tyson Wheatley is joining us now with some final tributes.
And Tyson, I would imagine a lot to choose from.
TYSON WHEATLEY, CNN.COM PRODUCER: Tony, the "King of Pop" will always be remembered for his white gloves, dark glasses and thrilling dance moves, but for many fans he was much more, much more than a performer. He was an icon, an inspiration, even an obsession.
And since his death, thousands of CNN viewers have been sharing their favorite memories of M.J. on our ireport.com. And we've taken many of these iReports and we've added them to this Michael Jackson memory book on CNN.com. And I'm going to share a few of the most recent entries that we've added to this memory book.
Let's start with Stephanie Mazzuca of Chicago, Illinois, who had this thrilling encounter with Jackson on a chilly December morning at Disney World. She was just 10 years old and standing in line on the Dumbo ride when a woman approached her and asked her if she wanted to cut in line. Minutes later, she was sitting next to the "King of Pop."
Mazzuca tells us that the two talked during the entire three- minute rite. It was like a conversation with your next-door neighbor, she tells CNN.
One of Jackson's assistants took this photo as they rode and later mailed it to her family with a nice thank-you card. To this day, says Mazzuca, "I still wonder why I was chosen."
Now, check this out. This is a photo taken by Broderick Morris, who spent time with Michael Jackson during Jackson's tour of Japan to promote the 25th anniversary of "Thriller."
Here, M.J. poses with a Superman statue in an electronics store. Morris tells CNN that Michael was a great father, enjoyed playing with his kids, and says, "I believe his kids really loved him."
All right. Where's this next one?
Oh, you're going to love this photo. This next one comes to us from Gail Davis. She snapped this shot of Michael Jackson and David Bowie...
HARRIS: Yes. Yes, we've seen this one. Yes.
WHEATLEY: ... backstage at the L.A. Forum in Los Angeles. And this is from 1983.
Of course, the legendary performance together there. This is during Bowie's "Serious Moonlight" tour.
Davis, who was working on the tour, says M.J. chatted it up before joining a celebrity-packed audience to watch the show. Just a fantastic shot.
HARRIS: Yes, it is.
WHEATLEY: And last, but certainly not least, a very candid moment caught on camera from Vanessa Lee-Fook, who met Jackson while living in Trinidad. Now, she was just 9 years old when the Jackson 5 toured there. She and her family met Michael on the beach, took this photo of them walking together, and in just that short encounter she tells CNN they got to know Michael Jackson as a truly wonderful, gentle and kind human being.
We, of course, want to thank all of our iReporters for sharing these precious memories with us these last two weeks.
And we encourage you to share yours on ireport.com.
HARRIS: Good stuff, Tyson. Appreciate it. Thank you, sir.
WHEATLEY: Thank you.
HARRIS: You lost your job, you have no income, but the reality is the credit card bills keep piling up. What do you do?
Well, we're going to ask Gerri Willis.
(COMMERCIAL BREAK)
HARRIS: All right. Here's the scenario for you. You're out of work, and over budget, and those credit card bills just keep piling up. Unlike the state of California, you can't pay with IOUs. So what can you do?
Our personal finance editor, Gerri Willis, has some tips.
Gerri, great to see you.
GERRI WILLIS, CNN PERSONAL FINANCE EDITOR: Yes, you can't pay with IOUs.
HARRIS: No, you can't.
WILLIS: Darn it.
HARRIS: So, how do we get started here? What's the first step?
WILLIS: Well, look, whenever you have a bill you can't pay, whether it's a medical bill or a credit card bill, whatever it is, you want to contact that creditor, tell them you're having trouble, and try to work out a plan. And the reality is when it comes to credit card companies these days, more and more of them want to work with you.
Ask them for a payment plan, and talk to somebody at customer service. If the first person who answers the phone can't help you, move up the line. Ask for their supervisor.
Remember, you can ask for a lower rate, that the fees be waived. Again, for a payment plan.
And as you do this, Tony, it's critical that you document all your conversations. What are they saying to you? What are you saying to them? When are you calling? How many times have you talked to them?
One Web site that might help out here is called helpwithmycredit.org. It's a Web site from the industry. Keep that in mind as you look at it, but it's about credit card debt, how to get rid of it, what to do about it.
HARRIS: Let me ask you a question, and this one comes from -- I've got to tell you, I've been hearing a lot of commercials on the radio about, hey, you can get your credit card debt forgiven.
Is there any way to get a portion of or all of your credit card debt forgiven, Gerri?
WILLIS: Well, let's not get greedy here, OK? Look, you know, it is your debt, after all, if you do want to pay it back. But the dirty little secret of the industry right now is that they do forgive some debt.
And as I said, don't expect a sweetheart deal. We're not talking about 100 percent. We're not even talking about 90 cents on the dollar. We're not even talking about 50 cents on the dollar.
We're probably talking maybe 20 percent, 30 percent is what you would end up paying, but there are rules of the road here. You typically have to be 90 days past due, three months without payments, before you can get some of this debt forgiven. And remember, this is going to hurt your credit score big time.
So, make sure you need to do this before you get involved.
And the other reality here is that, you know, you're going to get hit with a tax bill if you get more than $600 forgiven, because that's considered income by the IRS. So you'll have to pay taxes on that.
Now, if you're really spooked by this whole thing and you think it's a little scary, go to the National Foundation for Credit Counselors. They can have somebody help you through this, NFCC.org.
But I have to tell you, Tony, you can do this on your own. And what do you do? Pick up the telephone.
You've got to talk to them. Do not wait. As soon as you see you're in trouble, or you think you're getting behind, take initials step right away -- I need a plan. If the plan isn't working, I want some forgiveness.
Work your way through the decision tree.
HARRIS: You have always said that consistently. You've got to pick up the phone and make the call.
What if you can't make your payments, Gerri? What are your options?
WILLIS: Well, you know, here's something interesting to understand, I think. If you are really up against it, and let's say you have an incredible amount of debt, and you really can't make the credit card payment, here's what you need to understand. Credit card debt is unsecured debt. That means there's no asset behind it. There's not a car or there's not a house. The credit card company isn't going to take away your home, you're not going to take away your mode of transportation. They can't do that.
So, at the end of the day, what should you be paying for first? You should be paying for the roof over your head, your car, food on the table, utilities, the stuff that you have to have. Credit card debt is one of the last things, actually, that you want to pay.
Now, clearly, you always want to be a good citizen, you want to have the best credit core possible, you want to pay your credit card debt. But if you're one of those people who is in way, way over your head, understand that this should be closer to the bottom of the list.
And if you have questions, you know how to get a hold of me. Send me an e-mail to gerri@cnn.com.
HARRIS: Prioritize, so important.
WILLIS: Yes.
HARRIS: Good stuff, Gerri. Thank you.
WILLIS: My pleasure.
HARRIS: Wal-Mart -- have you heard this story? Wal-Mart is no longer the world's biggest company? Find out who pushed them out of the top stop.
I'm trying to look ahead here. I want to find out myself.
Just log on to CNNMoney.com.
All this money that is earmarked for the stimulus plan, is it really stimulating the economy? That is the question being asked at a House hearing at this very hour.
A GOP memo obtained by CNN accuses the administration of misreading the effectiveness of the stimulus.
CNN's Kate Bolduan is in D.C. for us right now with more.
And Kate, this has certainly become a hot topic over the last couple of weeks. Is the stimulus working?
KATE BOLDUAN, CNN CORRESPONDENT: A very good question, Tony.
Now, this is the third, this hearing, in a series of hearings held by this committee to track stimulus funding. Chairman Adolphus Towns, he said very clearly at the top of the hearing exactly what you said, Tony. What they want to learn today, is the Recovery Act working? That seems to be a tall order. Listen here to Republican Congressman Darrell Issa. He's highlighting one of the chief Republican concerns and criticisms of the administration's implementation of this act -- accurate reporting and transparency in where this money is going. (BEGIN VIDEO CLIP)
REP. DARRELL ISSA (R), CALIFORNIA: Aren't the American people in this day and age in which we can Google and find out what the neighbor's house next door is worth, when it last sold, what it's appraised at and when in fact it goes into escrow, why are we not in fact able to see when money was spent, no matter how spent, by the federal, state or local governments?
(END VIDEO CLIP)
BOLDUAN: Republicans are also hitting the Obama administration on its claim of saving or creating 150,000 jobs so far. In a Republican memo obtained by CNN, Republicans accuse the administration of, quote, "rigging the game" by using what they consider an impossible measure of tracking that effectiveness, verifying how a job is either created or saved.
Now, this hearing follows what Republicans say are some mixed messages coming from the administration. Vice President Joe Biden telling ABC there was a misread of how bad the economy truly was, and then the president -- President Obama having to clarify that to NBC while in Russia, saying they received incomplete information when it comes to the economy -- Tony.
HARRIS: Kate, one more quick one. Is anyone defending the stimulus plan?
BOLDUAN: Well, in this hearing, there are two people that they're -- two of the witnesses that they're talking to right now, one being Gene Dodaro. He's the comptroller general of the GAO, the Government Accountability Office. They're doing a bimonthly study tracking this money. Also, Rob Nabors. He's the deputy director at the Office of Management and Budget. Both...
HARRIS: Is that who's speaking right now?
BOLDUAN: That is Rob Nabors right now, exactly.
So, Gene Dodaro, he did say there is good here. Money is flowing to states, and he says it seems very clear that the stimulus money has helped to stabilize the very difficult fiscal situation with state and local government budgets. That's a good thing.
Rob Nabors, when asked about, how are you tracking this money, how are you creating and saving jobs and making sure that's happening, he says that they're -- while they're not happy with the job loss that we continue to see, he says they do believe they are on the right path, and they are making progress -- Tony.
HARRIS: Hey, this is important stuff. If you get some additional reporting coming out of this, just give us a bit of a heads-up, OK? Appreciate it.
BOLDUAN: Absolutely.
HARRIS: Kate Bolduan for us in Washington.
You know, when you want to know the real answers about health care reform, you go right to the source. The White House health reform communications director joining us next, live right here in the CNN NEWSROOM.
(COMMERCIAL BREAK)
HARRIS: Well, a step towards overhauling the nation's health care system. Just 30 minutes ago, Vice President Joe Biden announced hospitals are ready to give up about $155 billion in government payments over 10 years. Joining me live now from the White House is Linda Douglass, communications director for the White House Office of Health Reform. And our senior medical correspondent Elizabeth Cohen is with us as well.
So, Linda, let's start. I want you to talk us through this announcement from the vice president this morning, the case that this is a good deal. You know you're going to likely need the support of moderate Republicans like Senator Olympia Snowe. I'm sure you saw the piece in "The New York Times" this morning where she says, "We have yet to evaluate what are the specifics and particulars here, so it's uncertain if it could be helpful."
So, make the case. I'm Olympia Snowe. Make the case that this is an important deal that was announced by the vice president this morning.
LINDA DOUGLASS, COMMUNICATIONS DIRECTOR, WHITE HOUSE OFFICE OF HEALTH REFORM: Well, there is no question that this is an important deal. This is the second time that one of the major parts of the health care industry, the private health care industry, has come forward and offered to make real reductions in savings, measurable reductions in savings to help finance health care reform and to also reign in the rising skyrocketing costs of public health care spending.
This would be in legislation. This would conform to the kinds of policies that the president has already laid out. There's a tremendous amount of waste in our health care system, which everybody who uses the health care system knows we're talking about public health care spending, Medicare and Medicaid, where there are vast amounts of money that are not spent on good patient care but are simply wasted. What the hospital industry has done here is come forward and say we're going to bring those costs down, and we're going to put it in legislation.
HARRIS: Well, and that's important. I'm glad you went back to that point. You're saying that it is actually going to be in the legislation, which means it will be scored by the CBO.
DOUGLASS: What the hospital industry is negotiating -- has negotiated with the finance committee, which is one of the committees that is writing legislation, is, yes, we will agree to make $155 billion in reductions in spending over the next ten years to help bring down the cost of health care, to help expand coverage, which is a very, very important goal here, which would be part of the legislation.
So, if that is the legislation that is signed into law by the president of the United States, and we certainly expect legislation to be enacted this year, those will be the provisions that were agreed to, yes.
HARRIS: OK. I know Elizabeth has a couple questions for you, and then I'll jump back in.
ELIZABETH COHEN, SENIOR MEDICAL CORRESPONDENT: Linda, certainly this is big news coming from the hospital association today, but there's a lot of other constituencies here, a lot of other stakeholders, one of them being the American people. And most Americans do have insurance through their employers.
And they're actually pretty happy with their insurance, and surveys show they're a little nervous about health care reform. They're a little nervous that reform means that they might start to not like their coverage so much. And even though the president has said over and over again, don't worry, if you're happy, health care reform won't change that, are people hearing that message? And if they're not, what are you going to do to try to change that?
DOUGLASS: Oh, absolutely. I mean, first of all, Americans are already experiencing the crushing pressure of rising health care costs. Even if you have insurance, you have seen your premiums, your co-pays, your deductibles are rising, rising. If you work for a small business, your employer has cut back on your benefits, maybe has eliminated your health insurance altogether.
As you correctly said, the president has made it very clear that if you have health insurance already through your work that you like, nobody's going to make you change that. What we're talking about is making sure that all Americans have access to affordable health coverage and feel secure that there's affordable health coverage for them if anything happens to the coverage they have.
And for people who already have health insurance, they will see their costs go down. They will see they'll be able to spend more time with their doctor, because no longer will the insurance company be able to say that, you know, you've got to have exactly the right code or we're not going to reimburse you. Your doctors spend so much time on the phone now with the insurance company. He's going to be able to spend more time with you. There will be incentives to make sure there are checkups so people are presented from getting sick in the first place. There's a tremendous amount of benefit for the American people, and they know that.
COHEN: So, really, health care reform means that I'm going to get to spend more time with my doctor? A lot more time? A little more time? Can you quantify that?
DOUGLASS: Well, what we're talking about here is not only making sure that, again, if you have a health care insurance that you like, you can certainly keep it. If you are underinsured, as so many Americans are, you don't have enough to cover an operation, you'll have access to an affordable policy.
If you want to change jobs, if you have a -- if your child has asthma, you'll have access to affordable health insurance. No longer will those discriminatory policies be allowed. But we're talking about realigning incentives to reward quality rather than quantity, so that your doctor can spend the time asking you how you are, rather than spending the time on the -- with the insurance company on the phone or fighting to get you a reimbursement.
HARRIS: Hey, Linda, a couple of quick ones here. You mentioned that the cost reductions, the savings from hospitals will be in the legislation. How about those same reductions announced a couple of weeks ago by big pharma? Will those reductions be in the legislation?
DOUGLASS: Oh, absolutely. Absolutely the same thing. The pharmaceutical companies in the United States made an agreement, again with the Senate Finance Committee that the savings, $80 billion in savings that they have proposed to make that will both reduce the costs of prescription medications for seniors under Medicare, seniors who wind up with huge out-of-pocket expenses, and also financing health reform as well to help expand coverage and lower costs, that would be in the legislation...
HARRIS: OK.
DOUGLASS: ... that the Finance Committee is writing.
HARRIS: OK, one more quick one. That doesn't cover the cost of reform, and you know that. So, is taxing the portion of health care benefits paid for by employers, is that still on the table?
DOUGLASS: Well, as you know, the president has already put $950 billion on the table, $600 billion of which is savings that he's talking about, reducing waste and fraud, and all of the reasons that health care costs in the public sector are rising so much. In addition, he's proposing to return the rate of itemized deductions for the very wealthiest moderns back to where they were when Ronald Reagan was president. That's an idea he likes.
And by the way, Congress is talking seriously about this idea now. This is what the president has proposed. That is the way that he's proposing to generate revenues, as well as, by the way, primarily reducing the rising costs with savings.
HARRIS: Will the president sign a bill that taxes the health care benefits paid for by employers?
DOUGLASS: Well, you know we're not going to get into what the president is going to do or not do at the end of the process. What the president has said very clearly is this bill must lower costs for all Americans, and it must be deficit-neutral. It cannot add to the deficit. He's been very clear about that, and Congress is proceeding along those lines.
HARRIS: Linda, thanks for your time.
DOUGLASS: Thank you.
HARRIS: Linda Douglass for us. We appreciate it.
All right, we're going to take a break and come back. More in the CNN NEWSROOM in just a moment.
(COMMERCIAL BREAK)
HARRIS: You know, it's only July, but the Salvation Army bell ringers are already out. The Salvation Army in Long Island says the community is in such dire need, they've had to push up their usual Christmas drive by five months.
(BEGIN VIDEO CLIP)
CHARLES ROBERTS, SALVATION ARMY: Our requests for service have gone up 200 percent when compared to this same period last year. If you see the kettle, there's one thing to do, reach into your pocket, into your purse, make the best donation you have and put it right there.
(END VIDEO CLIP)
HARRIS: So, one coordinator says she's received 400 phone calls a day at just one of their key locations.
You know, some creative Californians are getting into the IOU- buying business on eBay and Craigslist. The state started issuing the IOUs last week to the vendors it owes money to. In return, those vendors earn 3.75 percent interest until the government can shore up its budget and pay back the money.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: Landlords are not going to accept IOUs, you know. They want money.
TOM DRESSLER, OFFICE OF THE STATE TREASURER (via telephone): The vultures are going to, you know, come out of their nests and descend and try and take advantage of the situation.
(END VIDEO CLIP)
HARRIS: So, meanwhile, the state's treasurer said California won't redeem the IOUs sold by one person to another unless they were accompanied by a notarized bill of sale signed by the original recipient. You follow all of that?
OK, so you hate your job, but with the tough economy you're too worried to quit. Guess what? You are not alone.
(COMMERCIAL BREAK)
HARRIS: The recession has dealt a big blow to many workers' paychecks and to their spirits. And now more than ever, people are staying put at their jobs even if the daily grind has them feeling just miserable.
Susan Lisovicz is at the New York Stock Exchange with more. Good to see you, Susan.
SUSAN LISOVICZ, CNN CORRESPONDENT: Good to see you, Tony. Yes, when you think about it, you know, an estimated 6.5 million jobs have been lost since the start of the recession, so you'd think that millions of us would feel lucky that we're holding on to our jobs. But it seems that, well, a lot of us -- of course, present company excluded...
HARRIS: There you go.
LISOVICZ: ... are pretty miserable, too. According to a new survey, 54 percent of workers plan to look for a new job once the economy rebounds. Why do they want out? Well, increased workloads, because there are fewer workers there, right? Fewer benefits and lower pay. And workers who are 18 to 29 are even more antsy to leave, with nearly two-thirds of those folks waiting for a rebound before giving their notice -- Tony.
HARRIS: Well, so, a lot of people unhappy at work. But most aren't even considering quitting, at least not in the near term, correct?
LISOVICZ: No question about it, Tony.
HARRIS: Yes.
LISOVICZ: And it's pretty easy to figure out why. I mean, there are roughly six applicants for every job postings. With those kind of odds, no wonder, you know, so many of us are staying put. The folks competing for the jobs that do open up are often laid off. They have skills, experience and, most importantly, hunger to work. So, they might be willing to take a pay cut or a demotion to land that steady paycheck -- Tony.
HARRIS: So, a good strategy to hunker down and just stay where you are?
LISOVICZ: That's right. You know, a new Labor Department report, Tony, shows employers were less willing to hire in May. And, you know, there are signs that, you know, that this is, you know, not going to change anytime soon.
HARRIS: Right, right.
LISOVICZ: The hiring rate, by the way, 3 percent in May. It's been the same level every month since February. We do have more upbeat news from the International Monetary Fund. The IMF boosted its outlook for next year, saying gradual recovery in the U.S. is on track, but that recovery will be weak.
Weak is the word for stocks right now. We're seeing a little bit of a selloff after we started higher. Family Dollar shares, Tony, up 10 percent, recording its best quarterly profits ever, more than 35 percent higher. Most of its products sell for less than ten bucks.
HARRIS: Yes.
LISOVICZ: It's a different lifestyle for a lot of us, whether we're working or not, Tony.
HARRIS: Yes. You know, but it seems to me that unhappy workers are less productive workers. We've got to find a way not only to hang on to that job but to find some...
LISOVICZ: To make it work for you.
HARRIS: To make it work for you.
All right, Susan. See you next hour. Thank you.
LISOVICZ: You're welcome.
HARRIS: Big battles over health care. Next hour, we will look closer at the Obama administration's efforts to overhaul the system and the Senate's fight over footing the bill. A live discussion with our money and health experts coming your way.
Plus, Wal-Mart moves into India. The U.S. retail giant hoping to cash in on new territory.
And deadly days for U.S. and other foreign troops in Afghanistan. We will take you live to the Pentagon for answers.
(COMMERCIAL BREAK)
HARRIS: You know, success in business can happen to anyone with a dream. In today's "Black in America" segment, Ed Lavandera uncovers at least one secret to success.
(BEGIN VIDEOTAPE)
ED LAVANDERA, CNN CORRESPONDENT (voice-over): You know you've arrived in the business world when your office can look like this.
UNIDENTIFIED MALE: Yes, this is all my stuff.
LAVANDERA: Michael and Steven Roberts launched their business empire from a historically black neighborhood in North St. Louis. They estimate their company, which holds everything from hotels to TV stations, to be worth almost a billion dollars.
(on camera): So, someone watching this who says, you know, that's really easy for these guys, because they've got millions and millions of dollars. They can go out and buy whatever they want. You know, I have two quarters to rub together. What do you tell that person?
MIKE ROBERTS, ENTREPRENEUR: That we also had two quarters to rub together. We weren't rich. We weren't poor. But we just never had any money either. STEVEN ROBERTS, ENTREPRENEUR: We tell folks, learn it. Get your hands dirty, you know, a little sweat equity, and then you will know it. It becomes yours.
LAVANDERA (voice-over): The Roberts brothers say the key to success is putting ideas into action. They are relentless workers always looking to make a deal.
M. ROBERTS: We're creatures. We're animals of the earth. What other animal retires? I mean, if a lion retired, you know, today, tomorrow morning he becomes breakfast, right?
S. ROBERTS: Mike was elected first.
LAVANDERA: They were both elected to the St. Louis Board of Alderman. Out of a one-room office, they created an empire made up of 76 companies with 1,100 employees. They run TV stations, hotels, they own commercial real estate and telecommunications companies. Their name adorns every property: the Roberts Village, the Roberts Loft, the Roberts Mayfair Hotel. But don't try comparing them to Donald Trump.
M. ROBERTS: What may appear to you today as ego, 40 years from now will be legacy. And black folks need legacy. We have to have examples of successes in order for us to be able to let the generations to come know that many of the successes that occurred by African-Americans in this country can be seen and pointed out and can be emulated.
LAVANDERA: The Orpheum Theater in downtown St. Louis symbolizes the Roberts's quest for legacy. Decades ago, their mother and other black people were only allowed to sit in the highest balcony. Now the Roberts brothers own the theaters.
(on camera): And Mom has (INAUDIBLE) balcony? I assume she gets a front-row seat?
UNIDENTIFIED MALE: Oh, yes. Absolutely, right.
UNIDENTIFIED MALE: Oh, yes, oh, yes, yes, yes.
UNIDENTIFIED MALE: You know, reserve tables, that's right.
UNIDENTIFIED MALE: Mom can sit wherever she likes.
UNIDENTIFIED MALE: ... she wants to.
LAVANDERA (voice-over): That is priceless.
M. ROBERTS: Hey, Mom, how you doing?
LAVANDERA: Ed Lavandera, CNN, St. Louis, Missouri.
(END VIDEOTAPE)
HARRIS: And get more stories of people creating solutions on "BLACK IN AMERICA 2" July 22nd and 23rd.
