Return to Transcripts main page
CNN Newsroom
Joran van der Sloot to Reconstruct Crime; Battling a Black Tide of Oil; Peruvian Victim's Family Speaks Out; Obama Holds Town Hall Meeting at Senior Center in Maryland, Discussing Medicare
Aired June 08, 2010 - 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: Live from Studio 7 at CNN world headquarters, the big stories for Tuesday, June 8th.
Stunning confession. Police say the suspect in Natalee Holloway's disappearance admits murdering a Peruvian woman. Joran van der Sloot could face charges today. Not a minute too soon for the victim's relatives.
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE: We need justice for our family, for Natalee's family, too. I think he's a psycho, a murderer, and he has to pay.
(END VIDEO CLIP)
HARRIS: Oil flows and emotions overflow for Gulf Coast residents worried about the future.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: It's like a family member dying. It's like my grandkids, they won't -- they probably won't know what a snapper is. And it's sickening.
(END VIDEO CLIP)
HARRIS: A beach protest against BP as the Gulf disaster reaches day 50.
Good morning, everyone. I'm Tony Harris.
Those stories and your comments right here, right now, in the CNN NEWSROOM.
Tough talk from President Obama as the Gulf oil disaster reaches day 50. In an NBC interview, the president says he is meeting with experts so he knows "whose ass to kick."
The president is also backing plans to lift the cap on damages oil companies must pay following a spill. The cap is currently set at $75 million.
Other headlines we're following. The Senate Judiciary Committee is holding a hearing right now on the risky business of big oil. The panel is examining whether liability caps encourage irresponsible corporate behavior.
And Britain is stepping up its inspections of North Sea drilling rigs. The government says the move is in response to the Gulf oil disaster.
BP's new point man on the Gulf oil disaster admits the company has made mistakes in its response. Managing director Bob Dudley got a firsthand look at the oil-stained shores of Grand Isle, Louisiana. He toured the area with Governor Bobby Jindal yesterday. Dudley says BP will try harder to get things right.
(BEGIN VIDEO CLIP)
ROBERT DUDLEY, MANAGING DIRECTOR, BP: It has been a massive effort, and taking on something this large is unprecedented. And there will be things that don't go just right.
We laid miles of boom around Louisiana on the off shore, and yet the oil still got through. We've set up claim systems designed to help people quickly and efficiently, yet some have not seen the checks that they expect.
We will keep at this every day, working with the unified command center to make this effort work better. I know there is frustration, and I do share it. I know people are heartbroken. I am, too, as are thousands of people from the BP family around the world.
(END VIDEO CLIP)
HARRIS: And as we mentioned at the top of the broadcast, a stunning confession. Police say the suspect in Natalee Holloway's disappearance has confessed to murdering a Peruvian woman, and he is being taken back to the scene of the crime today. In fact, I believe it's already happened. We're talking about the hotel where he stayed and where the 21-year-old Peruvian woman was found dead last week, Stephany Flores Ramirez.
We first heard about Joran van der Sloot five years ago. We have this update on the story from a piece filed in 2007 by our Susan Candiotti.
(BEGIN VIDEOTAPE)
SUSAN CANDIOTTI, CNN NATIONAL CORRESPONDENT (voice-over): It took a week for police to begin searching the small Caribbean island after Natalee disappeared. Two days after that, authorities finally picked up the boys from the bar for questioning.
Van der Sloot claimed at one point he left Natalee drunk on the beach and walked home by himself. About two weeks later, his father, a judge, was arrested, then released. A landfill was searched. A pond was drained. Every inch of the island, it seemed, was covered, but still no Natalee. Law enforcement sources said the boys' stories had changed repeatedly. Things didn't seem to add up. Yet, in July 2005, the Kalpoe brothers were released, as was van der Sloot two months later. All were freed for lack of evidence.
(END VIDEOTAPE)
HARRIS: All right. Joran van der Sloot was taken in for questioning again in 2007, but again, he was not charged for lack of evidence.
In just a couple of minutes we will talk to legal contributor Midwin Charles of our sister station truTV's "In Session" program about why Joran van der Sloot allegedly confessed to the killing in Peru and what sentence he could face.
A sentimental journey. Many people on the Gulf Coast fearing the sandy white beaches won't be the same next year.
And Jacqui Jeras is tracking which beaches are getting oil.
We're back in a moment.
(COMMERCIAL BREAK)
HARRIS: Police in Peru say Joran van der Sloot has confessed to murder, and they are taking him back to the scene of the crime, the hotel where he stayed and where a 21-year-old woman was found dead last week.
CNN's Rafael Romo is outside the hotel right now.
And Rafael, a lot has happened quickly. If you would, fill us in.
RAFAEL ROMO, CNN INTERNATIONAL CORRESPONDENT: That's right, Tony.
And police here in Peru tell us that it was a very dramatic confession, with Joran van der Sloot breaking down in tears and telling them that he was, indeed, guilty in the murder of 21-year-old Stephany Flores, who died on May 30th. Now, they are quoting him as saying that he said, "I didn't want to do it. The girl intruded into my private life."
What does he mean by that? Well, apparently, he went out that morning when they were staying at this hotel behind me, went out to get a cup of coffee. When he returned, she was looking online and found apparently some story regarding his alleged connection to the Natalee Holloway case. When he realized that she had learned that, that's when he attacked her, police say, and started beating her up, and eventually ended up breaking her neck.
Now, he is scheduled to come back here today to the hotel. Police are going to bring him because they're going to do a reenactment. He is going to tell investigators, step by step, what happened here, and this is all going to be part of the process that ultimately will end with his sentencing here.
And Tony, I have learned that he may face anywhere from 15 to 35 years behind bars here in Lima, Peru.
HARRIS: Rafael, a couple of questions here. You mentioned that he told police that Stephany had gone online and found some information about him. I'm curious to know, is this information that was just strictly online and available to anyone, you, me or anyone? Or is this information that she found in his personal computer?
ROMO: At this point it appears that it was just information readily available online regarding the case in Aruba in 2005 when he was a suspect for a time in the disappearance of Natalee Holloway. Remember that he was arrested and released twice, once in 2005 and once again in 2007. And apparently, that's what she learned.
Now, that was not big news here in Peru back in 2005 or 2007. And so, here, people didn't know who he was. And when she found out, that apparently was the reason why he got angry and attacked her -- Tony.
HARRIS: And Rafael, do we have a better understanding as to why from the Peruvian police or from reporting that you've been able to do, as to why he confessed to killing Stephany Flores? And maybe in this answer you can sort of detail some of the evidence that's mounting against him.
ROMO: Exactly. Well, the evidence is very strong. The evidence against him is very strong.
They had already two videos, one video from this hotel, the Tac (ph) hotel, where you can see him entering at 5:16 in the morning, the morning of May 30th, with the victim, Stephany Flores, following close behind. The video from security cameras here at the hotel also show the couple as they're entering a hotel room here registered in his name.
They also have video from the Atlantic City Casino, also here in Lima, where they are together. Apparently, that's where they met and that's where they started a conversation. Also, police telling us that they have forensic evidence that they're going through right now that may implicate Joran van der Sloot further in this case -- Tony.
HARRIS: Rafael, was a defense attorney for Joran van der Sloot present as he was offering this confession?
ROMO: He had a defense attorney assigned to him by the Peruvian government, but what's happening now is that he was not apparently pleased with the arrangement, and he has gotten his own attorney. We're still in the process of trying to find out who that person is. But, yes, what we know is that not only yesterday, when he was questioned, interrogated by prosecutors for 10 hours, but also Saturday, his first contact with police here in Lima, he had an attorney present at all times.
HARRIS: Has he recanted that confession? ROMO: You mean the confession last night?
HARRIS: Yes. Has he -- you mentioned that he had an attorney present, but now he is not pleased with that arrangement. So, the next question is, has he or anyone in his party recanted that confession?
ROMO: Right. Originally, he denied all the charges. He said -- back on Saturday, he said, OK, I knew the girl, we spent some time together, but she left and I don't know what happened to her. I have no idea what happened to her. I was doing by own business, and I am, in no way, shape or form, guilty for this.
That's what he said on Saturday. Last night, after 10 hours of interrogation, police are telling us that he broke down in tears, it was a very dramatic moment, and he said, finally, yes, I did it, and I didn't want to do it, but the girl intruded into my private life, based on what I was telling you before about Natalee Flores -- I'm sorry, Stephany Flores learning those details about his previous case in Aruba -- Tony.
HARRIS: So what time -- and I've just got a couple of more. And if the control room would just bear with me.
What time is the walkthrough, in essence, this reenactment of what happened? What time is that scheduled for? And could that be delayed until his mother, Joran van der Sloot's mother, ,arrives and/or an attorney?
ROMO: Well, originally, it was scheduled for 5:00 this morning. For different legal reasons, they had to push it back to noon, Lima time, which would be 1:00 Eastern. And so that's where we are at right now, for 1:00 Eastern. But then again, many things happening at this time.
HARRIS: Got you.
ROMO: His confession obviously was unexpected, and there are many legal matters that have to be looked at before that happens -- Tony.
HARRIS: A couple of more things. I would love for you to let us know, if it comes to pass, where Joran van der Sloot, through someone representing him, suggests in any way that the confession was coerced, because that would be big news.
The other thing is, in that confession, did he say anything about the Natalee Holloway case?
ROMO: As far as we understand, there's no mention. As far as police are telling us right now, there's absolutely no mention of Natalee Holloway, but that's only what we're getting from police.
There's been no mention of him being coerced, but then again, we have yet to hear from his attorney. We understand he has a private attorney, but it has not been disclosed who that person is. And until we can hear from him or her, we will learn whether he was coerced or not.
HARRIS: OK. Appreciate it. Good stuff.
Rafael Romo for us.
Rafael, thank you.
In just a couple of minutes we will take up a lot of these same issues with legal contributor Midwin Charles of our sister station truTV's "In Session" program about why Joran van der Sloot allegedly confessed to the killing in Peru and what sentence he could face.
Day 50 in the fight against the Gulf oil disaster. The White House is stepping up its war of words, and crews are struggling to contain the oil.
Samantha Hayes joining us live now from Destin, Florida, a very popular vacation destination, and she has the latest.
If you would, Samantha, what's the scene there at Destin?
SAMANTHA HAYES, CNN CORRESPONDENT: Tony, the scene that I can show you here in Destin is as big a contrast to the other scenes we've described, as you can imagine.
We've seen pictures of wildlife suffering from the oil. We've seen pictures of tar balls and of oil seeping into marshes and delicate wetlands.
This is totally different here. The beach is clean. The water is clear. And people are enjoying the beach. And that's been the situation since we've been here covering the news.
Certainly folks who are tourists who are here, and people who live here, are very grateful for that. Even still, though, the threat of the oil remains, and we're hearing the president using strong words to describe the response.
(BEGIN VIDEOTAPE)
HAYES (voice-over): It's the 50th day since the beginning of the oil disaster in the Gulf, and President Barack Obama is using some strong language to defend his response to the biggest oil spill in U.S. history.
BARACK OBAMA, PRESIDENT OF THE UNITED STATES: A month ago I was meeting with fishermen down there, standing in the rain, talking about what a potential crisis this could be. And I don't sit around just talking to experts because this is a college seminar. We talked to these folks because they potentially have the best answers so I know whose ass to kick.
HAYES: In Grand Isle, Louisiana, Monday, BP admitted that early containment efforts were not as successful as they had hoped, and offered to fund the construction of berms to protect marshlands in Louisiana which had been a repeated request from Governor Bobby Jindal.
DUDLEY: BP will fund the full $360 million to construct the six berms.
(APPLAUSE)
HAYES: Meantime, Florida is relying on hundreds of thousands of feet of boom spread around the panhandle to protect its famed emerald coast.
ROBERT SWANK, ANNUAL TOURIST: I think it's the prettiest beach in the world.
HAYES: Among the thousands of people who vacation in Destin, Florida, every year are Bob Swank and his wife Sandy. They were concerned that this beach, where they came 53 years ago on a date, might be ruined by oil.
SWANK: We came down here to say, hey, if it's going to get any stuff on it, we want to see it one more time before it does, if it does. This is a sentimental journey for us today.
(END VIDEOTAPE)
HAYES: Tony, and another good sign for the panhandle, the federal government reopened hundreds of square miles of water in the Gulf to fishing east of Destin.
Back to you.
HARRIS: Samantha, boy, it looks good behind you. I know we don't have time, but maybe when we talk to you next hour -- yes, that's exactly what I was going to ask you to do, is just give us a little look at that beautiful beach.
Destin, Florida, it looks terrific. We really need it to stay just that way.
But we will talk to you again.
Are the chairs empty? I've got a small monitor. A couple of them are empty.
Samantha, when we talk to you next hour, give us a little bit of a tour of that beach. It is absolutely beautiful.
We'll talk to you next hour.
We are getting more of your iReport images of oil on Gulf Coast beaches.
(BEGIN VIDEO CLIP)
MIKE MCHUGH, IREPORTER: Covered with oil. The difference is it's black oil. It is not like the tar balls, and you see the difference, brown and the black oil. You can see it covered all over here. It's all over driftwood.
(END VIDEO CLIP)
HARRIS: Man. This video is from Perdido Key, Florida.
Tests will have to confirm whether the oil is from the Gulf leak, but oil from the BP disaster has been found on that beach.
So, the fix at this point is collecting a lot of the oil. But what's next? And what happens if there is a hurricane? Our Josh Levs is going to show us.
(COMMERCIAL BREAK)
HARRIS: So, it is day 50 of the oil disaster in the Gulf. BP says it has collected close to two million gallons of oil from its ruptured undersea well in the last few days. The company is still working to completely cap the well. Cleanup could take years.
And other top stories for you.
Iran's president slams Israel for last week's raid on aid ships headed for Gaza. He says the confrontation revealed Israel's "devilish" nature.
And analysts say changes taking place in North Korea's leadership seem to indicate a transfer of power may be in the works from leader Kim Jong-Il to his youngest son. Among the changes, his brother-in- law and longtime right-hand man promoted to vice chairman.
We're back in a moment.
(COMMERCIAL BREAK)
HARRIS: Recapping one of our big stories this morning, authorities in Peru say Joran van der Sloot has confessed to killing 21-year-old Stephany Flores Ramirez, found dead in his hotel room last week. They have taken him back to the hotel this morning to reenact the crime. In fact, that has not happened yet. It could happen within the next 90 minutes or so.
Van der Sloot was the prime suspect in the disappearance of American teen Natalee Holloway in Aruba five years ago. He was arrested twice, but never charged in that case.
We have a lot of questions for "In Session" legal contributor Midwin Charles from our sister network, truTV.
Midwin, good to see you. It's been a while.
MIDWIN CHARLES, LEGAL CONTRIBUTOR, "IN SESSION": Good morning, Tony.
HARRIS: So, Joran van der Sloot has confessed after 10 hours in the hot seat with Peruvian authorities.
Do you think that this confession will stand up?
CHARLES: It might. I do understand that he had an attorney that was appointed for him, that was present during the confessions, and I understand that his family is also looking for a private attorney as well. So the confession most likely will stand. There will, obviously, be no trial should the confession stand, and he'll probably receive a lighter sentence as a result.
HARRIS: We are getting indications, though, that he was not happy with the arrangement during the questioning last night. Does that indicate to you that he, at some point here, is going to have a change of heart, will suggest that the confession was coerced, this was not my attorney, not my handpicked attorney, and that there may be some problems with this confession?
CHARLES: Well, he might try to say that, and say that this wasn't his handpicked attorney. But nonetheless, it was an attorney, someone who was licensed to practice law in Peru and understands the rules of evidence and the rules of interrogation. So I just don't know whether or not, if he were to put forth that argument, whether it would be persuasive in terms of holding up the confession.
HARRIS: OK. You know, we get challenges of attorneys here in the states all the time. I'm not going to belabor that point.
But then you turn to -- even if he does to challenge the confession, run us through the evidence in this case and what you think of at this point, because I have got to tell you, from everything I've seen and everyone across the country has seen, this looks really strong, this case against him.
CHARLES: Oh, it looks really strong, Tony. As I'm sure you're aware, there is video surveillance of Joran van der Sloot with this young woman coming in and out of hotels, where they met at the casino, the timing of it, and the fact that he fled, which is really one of the most damaging pieces of evidence against him.
HARRIS: That's an idea of consciousness of guilt?
CHARLES: It is. It's consciousness of guilt, and it's one of the things that they could have used against him had he gone to trial.
Now, Peru, being incredibly different from the United States with their legal procedures, the trial could have lasted for years, because their processes are entirely different. But it certainly shows consciousness of guilt.
HARRIS: OK. I said I wasn't going to belabor the confession point, but I am. Today there is supposed to be a visit to the crime scene, the hotel where the crime took place. It was scheduled for earlier in the day and it has been delayed.
I'm wondering what prosecutors are hoping to gain from a visit of the site. And it seems to me one of the things you would want to do is to have the suspect describe, as he's walking through the hotel, the confession that he gave last night. And I would assume that it would be recorded.
Does that make sense?
CHARLES: Oh, absolutely. Absolutely, it makes sense. And prosecutors are probably looking to gain -- to make sure that they can corroborate what he said with some of the physical evidence that's probably present in the hotel room, trace evidence, DNA evidence, and also to get information for the family. I'm sure the family would like closure and would potentially like to know, what were her last moments like, despite how horrific and tragic they were.
HARRIS: Yes. Last question. Do the developments in this case open Van der Sloot up for prosecution on the Natalee Holloway case? What do you think here?
CHARLES: Well, I'm almost certain that the Aruban police will probably reopen the missing persons file and take another look at it. I'm sure that they may try to even try to question Joran and find out if he could shed some light on her disappearance.
As you do know, he's been indicted in some extortion charges here, where he's been trying to extort money from some family members of Natalee Holloway in Alabama. He's received about $15,000 thus far. So, the U.S. Marshals and the plane ticket for the United States will be waiting for him after he serves his sentence in Peru.
HARRIS: That's interesting.
All right. Midwin Charles, good to see you. Thanks, lady.
CHARLES: Sure.
HARRIS: We are learning a lot more about Joran van der Sloot and the murder investigation. Our Ines Ferre just talked to the brother of the victim. We will fill you in on what he had to say in just a moment.
(COMMERCIAL BREAK)
HARRIS: It is the confession in Peru really that is echoing in the United States, Aruba, and pretty much around the world at this point. Peruvian police say Joran van der Sloot has confessed to the murder of a 21-year-old woman.
Ines Ferre joining me now.
And a lot of people are talking about this one. And what are you learning? You talked and had a conversation with Stephany Flores' brother?
INES FERRE, CNN CORRESPONDENT: Exactly, Enrique Flores, just a little while ago. I spoke to him over the phone, and he said as far as the confession is concerned, he said the family feels it's part of Van der Sloot's strategy to make it look like it wasn't premeditated and perhaps receive less jail time.
He also said that the family doesn't really feel relief now that he confessed. They felt relief when he was captured.
And here's what he said shortly after he was captured last week. Listen to this.
(BEGIN VIDEO CLIP)
ENRIQUE FLORES, VICTIM'S BROTHER: One of the things that we agree as a family was that we want this person to not hurt another family. We don't want this action to happen again.
RICARDO FLORES, VICTIM'S FATHER (through translator): My daughter is not a prostitute. My daughter was born in a decent home and lived a good life. Perhaps my mistake was that I only taught her about goodness in the world. But I never taught her about the other side -- evil.
(END VIDEO CLIP)
FERRE: And Stephany's father, Ricardo Flores, a businessman and former racecar driver in Peru, said that Stephany was a trusting young woman, a business student in the University of Lima, and an avid poker player. And she was described by her four brother as the queen of the house. And for days the family has been asking for justice.
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE: We need justice for our family, for Natalee's family, too. I think he's psycho, a murderer, and he has to pay for his actions.
(END VIDEO CLIP)
FERRE: And I also spoke with Carolina Flores. She said a little while ago that they want van der Sloot to spend as much time in jail as possible for the cruel way that Stephany was killed, Tony. And she also said that the family would at some point like to meet with Natalee Holloway's family. The brother said that they have been corresponding through e-mail. But they'd like to at some point meet.
HARRIS: That's real compassionate. That is terrific stuff. And great hustle by you to get on the phone with the family members.
Ines, thank you.
HARRIS: This hour in Washington, a center in memory of Natalee Holloway is officially opening. It is designed to help families of missing people and give advice students about traveling safely. In attendance, Natalee's mother, Beth Holloway who has you know has been a driving force behind the Natalee Holloway Resource Center.
We're back in a moment. You're in the CNN NEWSROOM.
(COMMERCIAL BREAK)
HARRIS: I'm not sure what we will get at this moment, but this is happening right now in Washington, D.C., and it is the opening of a center in memory of Natalee Holloway. That's Beth Holloway.
Let's listen in.
(JOINED IN PROGRESS)
BETH HOLLOWAY, NATALEE HOLLOWAY'S MOTHER: When Natalee went missing in May of 2005, my family desperately needed contact information, law enforcement information, government resources, missing person poster development, how to organize foot soldiers and command centers, media engagement and management, a plan of action.
I partnered -- The National Museum of Crime and Punishment and myself, partnered to form the Natalee Holloway Resource Center. The Natalee Holloway Resource Center's main focus is education and crime prevention. In the event a loved one goes missing, the Natalee Holloway Resource Center can be the family's first stop for contact information, missing person poster development, and media engagement.
Under Janine's (ph) guidance, the staff here at the National Museum of Crime and Punishment, worked tirelessly in the creation of the Natalee Holloway Resource Center. I feel confident that it will serve as a point of light for all missing.
(END OF COVERAGE)
HARRIS: That is Beth Holloway, as she is talking about the center -- the grand opening of the center named in honor of, in the memory of her daughter Natalee Holloway.
And we wanted to bring you that for a couple of reasons. We thought there was a moment there where she might speak about the recent developments in this case. The young man who was a suspect in her daughter's disappearance has now, according to Peruvian authorities, confessed to killing a Peruvian girl.
But she chose at the very top to make a statement that she was not going to speak about Joran van der Sloot. Now, there is a Q&A session to come after the prepared remarks and we will monitor the Q&A session. And if she decides to change her mind and offer some statement about the current events we will, of course, turn that around for you.
But, quickly now, we want to get to Jacqui Jeras.
Jacqui, we saw a great picture with Samantha Hayes (ph), Destin, Florida. It looked great. It just looked great.
JACQUI JERAS, AMS METEOROLOGIST: Beautiful.
HARRIS: We're trying to get another picture. But I think you have one to show us.
JERAS: I have one from Navarre Beach, which is just a little further to the west of the Destin area.
So let's go ahead and we'll start there and show you these beautiful pictures. Look at that. This is from the fine folks at nevarrebeachrental.com. They've given us access to their web cam so we can look live, on a regular basis to see what the beaches look like. And they are white and sugary in this area. Isn't that gorgeous? We can even zoom in and look at all the little people -- well, they're not little --
HARRIS: From our vantage point, yes.
JERAS: Exactly. And they're in the water. Look at them all.
So people are out there in the Florida Panhandle. We've been very concerned about the impact on the tourism industry and we're getting word that up to 40 percent of people have been canceling their beach vacations because of this.
Now I have some great news and this is the best thing that I have seen in quite some time, Mr. Tony Harris. Take a look that the. This is the new trajectory forecast for the oil spill and where it's expected to go. This is the forecast for Thursday. And take a look at where it is compared to where it was for Wednesday. This thing actually shrinks back up and it takes a light and heavier oil offshore.
So this is some improvement. This is directly due to the wind direction. We're going to see more easterly to southeasterly wind. So we think that hopefully that spill will back up on itself a little bit and maybe even potentially move a little further away from the coastline. So this is really incredible to see these changes in these forecasts as it's been heading east, east, east, east, east. So now there's a more steady easterly wind will bring it back toward the west. So let's hope this holds true.
And something to think about. We've had a lot of questions of people who want to go to the beach, who had plans. Should I stay? Should I go? What am I going to do? The beaches are open. They're open. Every single beach in all three states: Louisiana, Mississippi, Alabama, Florida -- four states, sorry -- are open. However, there are some swim advisories in a few of these areas. And basically what they're telling people is that maybe because of these dispersants and because of this oil, your health could be as risk if you go in the water.
These are the beaches open here in Florida. Everything's ready to go. As we take a look at though some of Alabama beaches, hopefully this is going to advance to the next graphic for you. For example, Orange Beach, they've got the swim advisory in effect there. So that's just something to think about. If you want to get in the water, then, well maybe that's your call. But if you don't want to get in the water, the beaches are open. It looks good.
HARRIS: You can still have a great time. Yes, it does. Oh, boy, that was terrific.
Let's see a live picture in Maryland. President Obama is holding an event right now and he's talking to seniors about checks that are going out, I believe later this weak, to help seniors with their prescription drug costs in closing the so-called doughnut hole. Let's see if we can sneak in a quick break before the President begins his remarks.
You're in the CNN NEWSROOM.
(COMMERCIAL BREAK)
HARRIS: OK. President Obama focusing right now on health care. He is at a senior center in Wheaton, Maryland. Of course, we'll get to him in just a second. I just want to set it up just a bit here. The President is holding a town hall meeting to discuss avoiding scams and fraud. Seniors around the country can listen by phone and ask questions.
Let's get you to the President now.
(JOINED IN PROGRESS)
BARACK OBAMA, PRESIDENT OF THE UNITED STATES: Ben Cardin couldn't be here, but he's wonderful, too, so give him a round of applause.
(LAUGHTER)
(APPLAUSE)
OBAMA: U.S. Representative Chris van Hollen here.
(APPLAUSE)
OBAMA: And U.S. Representative Donna Edwards.
(APPLAUSE)
OBAMA: And I wanted to just let you know they fought hard on behalf of seniors and on behalf of this health care bill. And I could not be prouder to be joined by them.
I really want to thank Fran (ph) for sharing her story with us. I want to thank everybody who has joined us here at the Holiday Park Senior Center. And there are a lot of people listening and watching all across America, so I appreciate all of you as well.
I'm looking forward to taking some of your questions, but first what I want to do is say a few brief words about the Affordable Care Act that we passed a couple of months back, and what it means for America's seniors. It's hard to imagine today, but just two generations ago, millions of our seniors went without basic health care coverage. Millions. It wasn't right. It wasn't reflective of our values and who we are. So rather than allow that reality to continue, we made a promise to America's seniors that you can live out your golden years with some basic peace of mind and health coverage that you can count on. That was the promise of Medicare.
The Affordable Care Act renews and strengthens that promise. This new law recognizes that Medicare isn't just something that you're entitled to when you reach 65, it's something that you've earned. It's something that you've worked a lifetime for. Having the security of knowing that Medicare will be there when you need it. It's a sacred and invaluable trust between you and your country. And those of us in elected office have a commitment to uphold that trust. And as long as I'm president, I will.
That's why this new law gives seniors and their families greater savings, better benefits and higher quality health care. That's why it ensures accountability throughout the system so that seniors have greater control over the care that they receive. And that's why it keeps Medicare strong and solvent today and tomorrow.
Now you've just heard Fran's story. When Fran was diagnosed with breast cancer the cost of her meditation surpassed the Medicare Part D coverage limit. But it didn't reach the Catastrophic Coverage threshold, so she found herself in this coverage gap called the donut hole, where she was forced to pay the entire costs of the medicines she needed out of pocket. That came to thousands of dollars, forcing her and her husband to cut back everywhere else. And I think everybody here understands Fran's story is not uncommon. I've heard others like it all across this country, and I about it when I read letters from so many of you at night. Those stories, your stories, are why we passed this law in the first place; to ensure that we don't have to keep on telling this same story.
Now this debate got pretty contentious us at times last year. I think you remember. And just when you were looking for accurate information about what this reform would mean for you, there were a lot of opponents of health care reform generally that sought to deny you that information. And they ran some pretty nasty rumors in hopes that it would scare folks. I know that's hard to imagine in politics, but that's what happened. And we've seen it before.
In the 1930s, when more than half of our seniors couldn't support themselves and millions saw their savings vanish, there were a number of opponents who argued that Social Security was going to be socialism. In 1965, plenty of folks warned that Medicare would lead to a government takeover of the health care system -- same argument that was made earlier this year and last year. We found out that those warnings had no anchor in reality and neither do the hysterical claims about this law.
So here's the truth: First and foremost, what you need to know is that the guaranteed Medicare benefits that you've earned will not change regardless of whether you receive them through Medicare or Medicare Advantage. Your guaranteed benefits will not change. Eligibility won't change. Medicare will continue to cover your costs the way it always has. If you like your doctor, you can keep your doctor. In fact, we're taking steps to increase the number of primary care physicians so that seniors get the care that they need. And I'm committed to reforming the way in which we compensate doctors under Medicare because right now it doesn't make any sense.
I don't think some of you may be aware of the fact that we've got this patchwork system where Medicare doctors each year have to see if they're going to get reimbursed properly or not. And we've got to change that. And that's something that I'm committed to doing and I'm going to keep fighting for doctor pay that is more cost effective and efficient and I urge Congress to pass a short-term fix today, and then we need to take this thing over the long-term, tomorrow.
So those are the facts. What you'll see through this new law are new benefits, new cost savings, and an increased focus on quality to ensure that you get the care that you need. And we're moving quickly and carefully to implement this law so that you begin to see some of these savings immediately. Case in point, beginning this week tens of thousands of seniors who fall into the donut hole like Fran, will receive a $250 rebate check to help you cover the costs of your prescriptions. That will happen immediately. That's starting now.
(APPLAUSE)
OBAMA: Each month.
And what's going to happen is each month as more seniors hit the donut hole, more and more checks will hit the mail, helping more than 4 million seniors by the end of this year.
Beginning next year, if you fall into the coverage gap you will get a 50 percent discount on the brand name medicine that you need. 50 percent.
(APPLAUSE)
OBAMA: And by 2020, it's being phased in, but by 2020, this law will close the donut hole completely. The donut hole will be gone. It will be gone.
(APPLAUSE)
OBAMA: Now that's not all. Beginning next year, preventive care, including annual wellness visits for Medicare beneficiaries, certain screening services, like mammograms, will be free because the best way to prevent a serious illness is to diagnose it early.
This law also gives us the power to see to it that insurance companies don't raise your rates just to pad their profits.
(APPLAUSE)
OBAMA: Last week Secretary Sebelius reminded insurance companies that we've got the authority to review and reject on reasonable rate increases for Medicare Advantage plans, and she put them on notice that we will exercise that authority.
Finally, because seniors are more frequently targeted by scam artists, we made sure the new law gives us stronger tools to target criminals. And I want to send a notice to all who would swindle and steal from seniors and the Medicare system: We are going to find you, we will prosecute you, and we will ultimately prevent those crimes from happening ever again.
(APPLAUSE)
OBAMA: Part of the reason this is so important is because we've been receiving some outrageous reports from around the country of people trying to scam seniors out of Medicare. They'll call asking for a Medicare number, or Social Security number, or a bank account information, claiming it's necessary to reenroll in Medicare, or to sign up for new Medicare cards. Some even go door to door claiming they are selling new government policies. It's appalling and it's infuriating and we're going to put a stop to it. And that's why today I want to announce a couple tough new efforts to protect seniors.
At my direction Secretary Sebelius and Attorney General Holder have expanded efforts across the country to vigorously crack down on criminals who seek to take advantage of seniors and of taxpayer dollars. We've established a joint Health Care Fraud Prevention and Enforcement Action team, also known as HEAT.
(LAUGHTER)
OBAMA: Yes. You like that?
(APPLAUSE)
OBAMA: HEAT. This task force is already focusing on certain cities with high rates of questionable Medicare expenses and charged several individuals with fraudulent billing.
In addition they'll continue a series of summits in cities across America with high rates of Medicare fraud, beginning next month in Miami. At these summits they'll work with state and local officials, health care providers and others that seniors rely on most, to increase awareness of fraud and share information and expertise in identifying fraud.
And finally, we're going to reduce by half the amount of waste, fraud, and abuse in the Medicare system, protecting your Medicare and the American taxpayers' money. In fact, we're looking to eliminate wastes everywhere we can.
Earlier this morning my Budget Director Peter Orszag laid out our new effort to cut wasteful spending across government, including asking all agencies to identify their worst performing programs as we put together the next federal budget. So that's what this law does.
Now, having said that, some of the folks who were against health reform in Congress, they still think that none of this should have happened. They don't think you should begin these rebates. Don't think we should close this donut hole. In fact, you have an entire party out there that's running on a platform of repeal. They want to roll back all these reform efforts. They say they have their own plan but over the last 14 months of debate, they never seriously advanced it. And when you look at it you can see why.
They'd roll back the rebate to help you pay for your medicine. If you fall in the donut hole, they'd roll back the free preventive care for Medicare recipients. And then away from seniors they'd roll back all the insurance provisions that makes sure that insurance companies aren't cheating folks who are paying their premiums. Their plan would let insurance companies continue to deny folks coverage when they get sick. They do little to make insurance more affordable. They gut the existing consumer protections. They put insurance companies back in charge. And some have even filed legislation that would end Medicare as we know it, giving every senior a voucher for health care instead.
Now, I refuse to let that happen. We're not going back. We are going to move forward. That's why I was elected.
(APPLAUSE)
OBAMA: So all told, the Affordable Care Act is a law that keeps America's promise --
(END OF COVERAGE)
HARRIS: OK. The President's remarks on health care, as you know, timed to coincide with the release later this week of the first batch of $250 checks to seniors who fall into Medicare's prescription drug coverage gap. That's known as the donut hole.
So, what is the donut hole? OK. It is the gap between when seniors can continue to receive a discounted rate on Medicare drug costs. A person pays a monthly deductible and pays 25 percent of their drug costs, up to $2,830 out of pocket. Then no more discount until they have spent $4,550. Now, that is a coverage gap of $1,720. Now, next year seniors in this gap will get an even bigger discount. One half off, 50 percent. And the White House aims to close the gap entirely by 2020.
Pushing to the top of the hour we're back in a moment. You're in the CNN NEWSROOM.
(COMMERCIAL BREAK)
HARRIS: Boy, I got to tell you. Emotional testimony just a short time ago at a hearing on the Gulf oil disaster. The Senate Judiciary Committee is holding a hearing on the risky business of big oil, right? Well, the brother of one of the workers killed in the BP oil rig explosion blasted the company's CEO.
(BEGIN VIDEO CLIP)
CHRISTOPHER JONES, BROTHER KILLED IN RIG EXPLOSION: I want to take this opportunity to address a recent remarks made by Tony Hayward, CEO of BP. In particular, he publicly stated he wants his life back. Mr. Hayward, I want my brother's life back. And I know the families of the other 10 men want their lives back. We will never get Gordon's life back. And his wife will live a life without a husband and her two children, a life without a father.
(END VIDEO CLIP)
HARRIS: Oh, boy. That man, Christopher Jones, will join me live, Thursday 11:00 a.m. Eastern Time, right here in the CNN NEWSROOM.
(COMMERCIAL BREAK)
