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CNN Live Saturday

Major Earthquake South Asia; Potential Terrorist Threat New York Subway System; New Orleans Mayor Ray Nagin Hopes Gambling can Jumpstart the Economy; New Orleans; New Orleans Levees being Rebuilt without Improvements; Right Criticizing Supreme Court Nominee Harriet Miers; Another Controversial New Energy Bill; U.S. May Not Be Ready For Bird Flu; Health Insurance May Be Cheaper Not Through Company; Kids Of Katrina

Aired October 08, 2005 - 12:00   ET

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

GERRI WILLIS, CNN ANCHOR: And in Washington, President Bush defends his Supreme Court nominee Harriet Miers. In his weekly radio address Mr. Bush called her a "trailblazer with a record of accomplishments." While some conservatives support a nomination others have offered scathing criticism. They say Mr. Bush is missing an opportunity to add an experienced judge which would shift the high court to the right on social issues. A live report front CNN's Bob Franken, that's straight ahead.
And in Iraq, American troops and Iraqi forces in their anti- insurgency campaign known as operation Iron Fist. The campaign along the Syrian border lasted nearly a week. Officials say that more than 50 al Qaeda terrorists were killed in the operation.

We begin this hour in south Asia where a major earthquake has reduced whole villages to rubble killing hundred, perhaps thousands of people. The quake with a magnitude of 7.6 struck parts of Pakistan, India, Afghanistan and the disputed territory of Kashmir. Its epicenter was in the Pakistani-controlled side of Kashmir. And all across the region there are scenes of devastation. In Islamabad, Pakistan, the quake brought down a 10-story apartment building. Danny Kemp is Islamabad's deputy bureau chief for the French Press Agency is with us now on the phone.

Danny, what are you seeing?

DANNY KEMP, DEPUTY BUREAU CHIEF, FPA ISLAMABAD: Well, I mean, now night has fallen here so rescue operations are -- they're trying to continue rescue operations into the night, but things are slowing down and we are waiting to see how the death toll will come out across the region.

WILLIS: Any more aftershocks to report?

KEMP: It's been calm for the last few hours. About six or seven hours after the main quake we had a very big aftershock, but since then it has come down and we've really been -- just been seeing the rescue work continuing.

WILLIS: And how are people coping at this hour with, obviously, it's nighttime, there are probably no lights at all. What's going on? KEMP: Most of the main devastation was in the mountain villages in northern Pakistan, very remote areas that have been completely cut off from the world by the earthquake. So we've just -- we've had very sketchy reports and then what we hear is whole towns and villages disappearing in those situation. It looks very grim. It sounds very grim. We hear of hospitals where the doctors are too scared to, you know, to go inside the hospital and people having to be treated outside because of fears that there may be further aftershocks and so it's a grim situation.

WILLIS: And that would make care very difficult indeed if the doctors can't get access to the kinds of drugs and medicines they need to help people.

KEMP: That's right. They've been appealing for more -- you know, for more medicines and also supplies of blood to treat the wounded. We hear that particularly from northwest Pakistan which is also badly hit by the quake.

WILLIS: How much are you seeing, or have been seeing over the last few hours in terms of how there have been pledges of international support, obviously but it takes a while for this help to get mustered and get to the area.

KEMP: It will. I mean, Pakistan has said that, you know, that it's grateful for offers of help any that come in, we see in neighboring India has offered to help Pakistan or even though it was -- India was also hit by the quake and a couple hundred people have been killed. We also -- there's a million euros have been offered by Ireland which will also be useful. But, I think, Pakistan (UNINTELLIGIBLE) you know, wants a bit more time to appraise the situation to discover whether it will need, sort of, search teams or mechanical equipment to help in the rescue efforts. So, I think they'll be more specific about that tomorrow.

WILLIS: Let's talk about the scale of this, obviously 7.6 on the Richter Scale, the magnitude of that quake amazing, but even the aftershock 6.3 on the Richter Scale. This is an astonishing tragedy for people in this area and I think hard for many of us to imagine in this country.

KEMP: It's really massive and to be frank with you, most -- you know, we are just coming to terms with it ourselves. I mean, you know, the death toll has climbed slowly from dozens earlier in the day to hundreds and then to thousands and, you know, now we're told by officials that the death toll is going to be in the thousands and, you know, the devastation is, we're hearing, is (UNINTELLIGIBLE) with whole villages kind of wiped off the map by landslides, washed into rivers. It's truly catastrophic.

WILLIS: Well Danny Kemp, thank you so much for that report today. Stay safe.

KEMP: Thank you.

WILLIS: The earth rolled and rumbled in India's capital causing widespread panic. CNN's producer is on the phone from New Delhi -- John.

JOHN RAEDLER, CNN PRODUCER: Gerri, we've had by far the easiest time of it here in the Indian capital, population some 40 million people. Some 12 hours ago when this earthquake struck, buildings here shook and shuddered. It would have been obvious to everyone in this city that an earthquake was happening, things on tables, on desks rattled, things fell off tables and desks, but surprisingly and to everyone's relief here there have been no significant reports of damage and no significant injuries, but north of here in Indian- controlled Kashmir, they have really taken a major part of the brunt of this massive earthquake. The latest death toll that CNN can gather from officials, both police and local government officials in Indian- controlled Kashmir is 250 people and that toll is expected to rise, particularly as come tomorrow, it's nighttime here now, but come tomorrow it's expected that the military will be able to get into some of the more remote areas where the situation, at this stage, is simply unknown and it's expected that they might well find there what is being found in Pakistan, namely villages, communities, very severely damaged and lots of injuries and fatalities as a result.

WILLIS: Of course John, it's worth mentioning at this point the total CNN confirmed death toll from this earthquake and the aftershock is 856 that's expected to go far higher. I wanted to ask you, I understand India is offering aid to Pakistan which is interesting because these two countries have had something of a contentious relationship and obviously the regions pulling together at this time.

RAEDLER: That's one of the very interesting dimensions of this whole story is we know that for more than 50 years now, ever since partition here, India and Pakistan have been in a state of high tension and indeed they have had outright wars all over the disputed territory of Kashmir, but now Kashmir, both Indian-controlled and Pakistani-controlled share a common crisis, share a common human tragedy of giant proportions and back in 1999 when there was a big earthquake in Turkey, Greece, at the time, sent in significant aid and help in that and historic tensions between recent Turkey seemed to ease and abate somewhat after that. So, I think there are some people here looking ahead once we get beyond the crisis that will unfold, undoubtedly, in the next few days. What might this mean for India- Pakistan relations, particularly over Kashmir and might there be a further thawing in those relations.

WILLIS: Well, John Raedler, thank you for that report. That was CNN producer John Raedler on the phone from New Delhi.

And be sure to stay with CNN for continuing coverage of this major earthquake. We'll have live reports throughout the day, of course.

In our "Security Watch," New York police are once again out in force today responding to a potential terrorist threat on the city's subway system. A Homeland Security official has downplayed the threat, but as CNN's Keith Oppenheim reports, some New Yorkers aren't take anything chances.

(BEGIN VIDEOTAPE) LARRY LOPEZ, NEW YORKER: How was school today?

LEO LOPEZ, LARRY'S SON: Good.

KEITH OPPENHEIM, CNN CORRESPONDENT (voice-over): Larry Lopez is changing his routine. Instead of letting his 11-year-old son, Leo, take the subway, he's got another plan.

LARRY LOPEZ: We're walk to Madison and then from Madison we'll catch the 32 bus right there.

OPPENHEIM: Today, Larry will escort his son home by walking half a mile to a bus. Normally, father and son commute separately, both taking two subways from Manhattan's west side to the family's apartment in queens. The train trip lasts a half hour. The walk and bus ride will take twice as long, Larry feels it's worth it.

(on camera): As a parent it's kind of a different dynamic that you feel.

LARRY LOPEZ: Yes, yes.

OPPENHEIM: You got to be with him on the train.

LARRY LOPEZ: Right. Right. Because, you know, right now with the scare, you know, you have to take it seriously because, you know, you don't want to be saying, you know, Oh, I could have done this or you could have done that.

OPPENHEIM (voice-over): The Q32 shows up on Madison Ave. just minutes after Larry and Leo reached the stop. Onboard, Leo says having his dad take him home is just easier.

LEO LOPEZ: It might be a waste of time for the cops to check my backpack because I have a really big backpack.

OPPENHEIM (on camera): But for you it's not just inconvenience, you're a little scared about it?

LEO LOPEZ: A I little bit.

Do you go to Queens?

OPPENHEIM (voice-over): For Eleni Zis, the change in routine is all about inconvenience.

ELENI ZIS, COMMUTER: No, usually I just jump on the subway and go home.

OPPENHEIM: Today she's taking a cap. Instead of spending two bucks on a sub subway fare she'll spend 17 on the taxi. Now she she'll go back to the trains Monday, but now wants to take the easy route.

ZIS: Getting my bag searched and cops and then the terror threat added to that and all that, I just decided, you know what? I just want to go home without any hassle.

OPPENHEIM: Larry Lopez has a parent's perspective. Until he feels secure, his son can get home safely, he'll stick with the long way home.

LARRY LOPEZ: Once the scare's off then we won't have to worry about it, you know and then...

OPPENHEIM (on camera): So, a day by day thing?

LARRY LOPEZ: Right, yes, you know, we'll play as long as it, you know, as long as it goes. And once everything is OK then, you know, we'll get back on the subway and get back to the faster pace of life, you know.

(END VIDEOTAPE)

WILLIS: The threat against New York prompted San Francisco to increase security on its transit system. The alert status Bart trains has been elevated, meaning more officers patrolling train stations for longer periods of time. There will also be random inspection, but as of now there are no plans to inspect bags.

The federal government's railway security plans are incomplete and may do more harm than good. That's a shocking conclusion of a new report by congressional investigators. The report criticizes several government safety measures. One of them requires railways to install bomb-resistant trash cans. Railway groups say the cans would force an explosion upward possibly causing underground stations to collapse.

Stay tuned to CNN day and night for the most reliable news about your security.

And rebuilding the levees: Construction is underway, but many think the plan is flawed. We'll tell you why, straight ahead. And if you're looking for cheaper health insurance, stay tuned, we've got answers for you even if you don't have a job.

(BEGIN VIDEO CLIP)

You know the federal government, we're not -- we're not ready for anything.

(END VIDEO CLIP)

WILLIS: Voicing concerns over a possible flu epidemic. Is the U.S. government prepared? CNN LIVE SATURDAY continues in just a moment.

(COMMERCIAL BREAK)

WILLIS: Checking now the latest in the aftermath of Hurricane Katrina, former President George Bush is headed to the Gulf Coast region today for a firsthand look at rebuilding efforts. Stops are planned in Alabama, Mississippi, and Louisiana. He is working with former President Bill Clinton to raise money for hurricane victims. More deaths are reported in Louisiana from Hurricane Katrina. State officials report the bodies of 1,003 storm victims have been recovered. The overall death toll now is, in five states, is 1,239, making Katrina the deadliest storm to hit the U.S. since 1928.

And in New Orleans Mayor Ray Nagin hopes gambling can help jumpstart the economy of his devastated city. Nagin wants to create a downtown gambling zone on Canal Street. He adds six or seven hotels to complete the idea. His proposal would need approval from the state legislature and city voters.

Many levees in New Orleans were not strong enough to withstand Hurricane Katrina and that led to massive destruction. You might think repair crews would rebuild the levees taller and stronger, but CNN's Dan Simon reports that's just not the case.

(BEGIN VIDEOTAPE)

DAN SIMON, CNN CORRESPONDENT (voice-over): Coming back from Katrina, one key, strong levees. These bulldozers in Saint Bernard Paris moving dirt to rebuild what nature destroyed. Hard to believe, but this is where levees once rose 17 feet in the air, washed flat and with it, much of this parish.

COL. LEWIS SETLIFF, ARMY CORPS OF ENGINEERS: What's exciting today we came up here this week and started our initial construction aimed at long-term recovery of the hurricane protection system.

SIMON: The plan, to rebuild the hurricane protection system like it was, just sufficient to withstand a Category 3 storm. The excitement here is hardly universal.

UNIDENTIFIED MALE: Get the job done right the way you want to worry about having a problem like this again.

SIMON: In a community where house after house was destroyed from the floodwaters from a Category 4 storm, many residents are unable to hide their frustrations.

UNIDENTIFIED MALE: They need to rebuild them high, in my opinion, to the proper levels where they can handle a Category 5 or 4 instead just of Category 3.

SIMON: But the Army Corps of Engineers says it doesn't have the funding nor the resources to rebuild bigger and better and still have the levees finished by next summer. It says it could strengthen further at a later date, still not a good plan says Louisiana republican Senator David Vitter.

SEN. DAVID VITTER (R), LOUISIANA: I'm tired of living by the old corps standards and the old corps schedule. This is an emergency situation.

SIMON (on camera): I know you don't make those decisions, but you're aware that the sentiment is out there. SETLIFF: We are intimately aware that that sentiment exists. Again, our authority to act rests solely to restore what was here before the storm.

SIMON (voice-over): Touring the parish as we did today, the magnitude of rebuilding the levees becomes clear, mile after mile will have to be rebuilt. Everywhere, there are examples of the powerful storm surge.

(on camera): And this right here is pretty striking, when you consider that before the storm you couldn't even see that pipe. That's because it went right through the levee.

(voice-over): The corps says even getting the levees back to pre-Katrina strength by next year will be difficult.

UNIDENTIFIED MALE: We're committed to getting the work done. We know a lot of people are not going rebuild until we have the levees in place because that's what provides protection for them from the hurricanes or storm surges.

SIMON: Kevin Wagner who is overseeing the levee rebuilding in Saint Bernard Parish knows what's at stake. He, too, lost his home. The planned replacement levees, he says, will be enough for him to rebuild his house.

KEVIN WAGNER, HOME DESTROYED BY HURRICANE: For 40 years the system worked very well and I think you can have complete confidence that once we finish with this people will have a level of protection that they'll feel comfortable with.

SIMON: The core concedes a stronger, bigger levee some is preferable, but there's no money, no plans, and no time to rebuild before the start of next year's hurricane season.

Dan Simon, CNN, Saint Bernard Parish, Louisiana.

(END VIDEOTAPE)

WILLIS: One family displaced by Katrina is starting over in Houston, Texas, with some help from R & B star, Usher. Usher's New Look Foundation is working with New Orleans-based Hibernia Bank and mortgage provider Freddie Mac to donate 1,000 new homes to storm victims.

Yesterday the first of those families of given the keys to their new three-bedroom home.

And after losing their jobs many Katrina victims are also without health insurance. But there's a way to get often cheaper coverage without employment. I'll speak with an author on a new health insurance solution.

And, caught on tape. You have to see this. Fleeing from a courtroom, we'll tell you how far this suspect made it. That's ahead on CNN live Saturday. (COMMERCIAL BREAK)

WILLIS: President Bush going on the defensive over Supreme Court nominee Harriet Miers. Conservatives are criticizing his choice of a White House counsel who has never been a judge. There's little in the public record to indicate Miers' leaning on issues like abortion and that's sparked concern on both sides of the political spectrum. CNN's Bob Franken has more from Washington.

Hello, Bob.

BOB FRANKEN, CNN NEWS CORRESPONDENT: Hello, Gerri and we would have expected that those on the left would be just itching to take on President Bush with this Supreme Court nominee, somebody who's going replace the nearly revered by them, swing vote on the court, Sandra Day O'Connor, but fancy this, just about the loudest criticism, -- remarkable criticism, actually, is coming from the right.

There are all these people who, for years, have been looking for a rightward tilt to the court, people may take the court to a more conservative point of view and they're very disappointed, they say, because they didn't get the out sperken (SIC) proven conservative they said that they were going get. President Bush went to the radio, used his address this week to say one more time to his soul mates that she's one of them.

(BEGIN AUDIO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: I chose Harriet Miers for the court both because of her accomplishments and because I know her character and her judicial philosophy. Harriet Miers will be the type of judge I said I would nominate, a good conservative judge.

(END AUDIO CLIP)

FRANKEN: Did you hear that, conservatives? The president said conservative. Of course he said that several times before and thus far it seems to have fall own many deaf ears.

(BEGIN VIDEO CLIP)

JESSICA ECHARD, EAGLE FORUM: This is a letdown for the conservative base. Most of the folks who voted for President Bush are not energized by this nomination.

UNIDENTIFIED MALE: We're have to try to gather little pieces and shreds of evidence and do almost a CSI-type of operation to try to conjecture out of that where a person will be.

UNIDENTIFIED MALE: It's a mistake that could be rectified by Ms. Miers' deciding that it might be for the good of her president if she stepped aside.

(END VIDEO CLIP)

FRANKEN: Meanwhile, Harriet Miers is pretty much keeping an even keel as she goes back and forth to Capitol Hill talking to members of the U.S. Senate, because, of course, Gerri, the members of the Senate with their advise and consent power are the ones who really count.

WILLIS: Bob Franken, thank you for that report.

We have this news just in our continuing coverage of the earthquake in Southeast Asia. Police chief in Pakistan and Islamabad, Pakistan, says the bodies of 250 girls have been found in a northwestern Pakistan school destroyed by the earthquake. And, of course, as we've been reporting a 7.6 earthquake on the Richter Scale hit just not long ago and still digging out, the aftershocks are also very strong. We'll be staying on top of this story. This information about the school in from the "Associated Press" and we'll be back with live updates.

After a heated debate and by the thinnest of margins the House of Representatives is sending the Senate a controversial new energy bill. The legislation encourages oil companies to open new refineries. The measure was approved by a two-vote margin yesterday, but only after GOP leaders extend the vote by 40 minutes, angering House democrats.

(BEGIN VIDEOTAPE)

REP. NANCY PELOSI (D), MINORITY LEADER: The wishes of the American people...

UNIDENTIFIED MALE: Does the gentlelady have a parliamentary...

PELOSI: I have a parliamentary inquiry. When are you going to honor those!

UNIDENTIFIED MALE: The House will be in order!

UNIDENTIFIED MALE: On this vote the ayes are 212, the nays 210 the majority voting affirmative. The bill is passed without the motion to reconsider is laid upon the table.

(CHANTING: Shame! Shame! Shame!

(END VIDEOTAPE)

WILLIS: Now, that's spirited debate. The bill would cut the number of gasoline blends refiners must produce, eliminating many blends designed to reduce pollution.

Now a look at other stories making news across America. Congressman Tom DeLay asked a Texas court to throw out an indictment against him. The Texas republican accuses Travis County district attorney Ronnie Earle of trying to browbeat grand jurors on trying to indict him on money laundering charges. Earle's office says DeLay says claims have no merit.

A short-lived dash for freedom: A courthouse surveillance video captured a defendant trying to flee a Kentucky courtroom during a sentencing hearing. He didn't get too far. He was caught in the hallway of the courthouse. And in Riverside, California, a daring attempt to make of with an automated teller machine. Now, surveillance video captured a man tying a chain around an ATM, attaching the chain to his vehicle and then driving away with it. Police found the ATM a mile away. The suspect is in custody. You got to avoid those cameras, obviously.

And a 2-year-old Arizona girl has a really special birthday president (SIC), a name. The toddler's parents couldn't decide what to call her so the little girl finally picked her own name and it's Alice. No word when she might get a middle name.

And preparing for a possible flu epidemic: Is the U.S. government up to the task? After the deaf station of Hurricane Katrina, many fear the worst. We'll explain.

And rescue efforts continue after a powerful earthquake rocks part of south Asia. A live report is just ahead.

(COMMERCIAL BREAK)

WILLIS: Emergency workers are searching for survivors of today's deadly earthquake in south Asia. At least 856 people were killed when the magnitude 7.6 quake jolted parts of Pakistan, India, Afghanistan and India-controlled Kashmir. Thousands more are feared dead.

Indonesian investigators hope photographs will help them find the suspected masterminds of last weekend's deadly bombings in Bali. A helicopter dropped thousands of leaflets containing pictures of the two suspects over the resort island today. Nearly two dozen people died in the attack including three bombers.

And U.S. and Iraqi forces have ended a nearly weeklong offensive in Iraq's Anbar Province near the Syrian border. The U.S. military says more than 50 al Qaeda terrorists were killed during Operation Iron Fist. U.S. marines and Iraqi soldiers have been trying to stop insurgents from crossing the Iraqi-Syrian border.

And amid growing concern about the world about avian flu there's word the United States is woefully unprepared for what could become the worst disaster in the nation's history. "The New York Times" has obtained a copy of a plan developed by the Bush administration to deal with the possible flu pandemic and according to that plan, if such an outbreak happens, hospitals would be overwhelmed.

Riots would break out of vaccination clinics, and even power and food would be in short supply. And under a worst-case scenario, nearly two million Americans would die from the illness. "The New York Times" report comes as President Bush is urging vaccine makers in the U.S. to boost production of flu vaccines.

CNN's senior political correspondent Candy Crowley reports on the growing concern about U.S. readiness for a potential bird flu outbreak.

(BEGIN VIDEOTAPE)

CANDY CROWLEY, CNN SR. POLITICAL CORRESPONDENT (voice-over): Think the U.S. government is ready for a deadly global flu epidemic?

UNIDENTIFIED FEMALE: Surely you jest. No.

CROWLEY: They're lined inside a Maryland grocery store for a garden-variety flu shot. Most have heard of bird flu. All have heard of Hurricane Katrina.

UNIDENTIFIED FEMALE: You know, the federal government, we're not -- we are not ready for anything.

CROWLEY: The government's initial reaction to Katrina permeates the discussion of a bird flu which may or may not happen, but most certainly would be catastrophic. A recent Pew poll found the percentage of Americans who think the government is almost always inefficient rose by 9 points post-Katrina to 56 percent.

It's why the State Department is anxious to show this, an international meeting to talk about an early warning system for a flu which has already migrated from birds in Asia to birds in Europe. And it's why the White House put this out, the president and drug company execs discussing vaccine production.

Call it the FEMA effect. Everybody feels it, the public, the experts, the government. Remember those ill and elderly patients lying on the floor of the New Orleans Airport?

KIM ELLIOTT, TRUST FOR AMERICA'S HEALTH: But imagine that times 50 simultaneously, where we have to see things like high school gymnasiums and hotel ballrooms converted to field hospitals. And I would be willing to wager that, in most communities, the local Marriott or Days Inn hasn't been notified by the local health department that they may need to take over that facility to treat sick patients.

CROWLEY: This is the man who does not want to be Michael Brown. Post-Katrina, Health and Human Services Secretary Michael Leavitt walked through medical facilities and shelters in 17 cities in seven states.

MICHAEL LEAVITT, SECRETARY OF HEALTH AND HUMAN SERVICES: I saw row after row of cots, medical cots, that had been put together in very short periods of time.

CROWLEY: Secretary Leavitt is responsible for the government's response plan for the flu.

LEAVITT: I also thought, what if I were seeing this happen all across the country? What if I were seeing it at a time when people were afraid and not anxious to help? Those are two of the things that worry me.

UNIDENTIFIED MALE: Do you think the federal government's prepared?

UNIDENTIFIED FEMALE: I hope so. No.

(LAUGHTER)

CROWLEY: But the FEMA effect blows many ways. Remember the blame game, who should have done what, when? Consider a pandemic.

LAURIE GARRETT, AUTHOR, "THE COMING PLAGUE": Public health is executed by states and cities and, in some states, by counties, and all with different laws and different sets of responsibilities. Very few states and very few large cities in the United States have developed their own flu preparedness plan.

CROWLEY: And the truth is, even as you worry about the government's preparedness, it worries about yours.

LEAVITT: That kind of natural disaster, time after time, we see that, for a certain period of time, 36, 72 hours, people are pretty much on their own. And what you do in the 100 hours before a disaster is a lot more important than what happens in the few hours after.

CROWLEY: When it gets right down to it, life can turn on whether there's an axe in the attic or hand sanitizer in the cabinet. Candy Crowley, CNN, Washington.

(END VIDEOTAPE)

WILLIS: A lot of us get our health insurance coverage through our employers, but is that the best way to do it? Some say you may be better off getting coverage on your own. Good news for roughly 47 million Americans without protection at all. Paul Zane Pilzer in is the author of "The New Health Insurance Solution: How To Get Cheaper, Better Coverage Without A Traditional Employer Plan." And he's joining us now from Salt Lake City. Welcome.

PAUL ZANE PILZER, "THE NEW HEALTH INSURANCE SOLUTION": Thank you, Gerri. It's good to be here.

WILLIS: Now, let me just say before we get started that you believe so much in this plan that you've started a company to sell insurance if I'm reading notes correctly.

PILZER: Yes, more than sell insurance. We work with large Fortune 500 companies to show them how they'd be better off giving an allowance tax-free to each employee to purchase their own individual insurance policy.

WILLIS: All right. Let's get to the details of this, because I think a lot of people out there are saying how can this be possible? How can this be possible, Paul?

PILZER: Well, basically what's happened is 46 states have now liberalized their laws on individual insurance. Individual insurance is a policy that you purchase direct for your family from the local Blue Cross or major carrier in your state. Those policies today are, on average, less than half of the price for the same coverage of an employer policy.

WILLIS: But let me interrupt you here. I mean, the reality is is that I don't pay 100 percent of my coverage, my company picks up a lot of that tab. Isn't that a good way to do it? It reduces my cost.

PILZER: Yes. The problem is that if you have a spouse or children, in the past, your company paid the complete cost of your spouse or children. Today most companies pay 50 percent or less of the cost of your spouse or children. That's why it's better for you to move your spouse or family on to their own individual policy that you keep even if you lose your job and it's half the price.

WILLIS: I think what is astonishing is that I know a lot of people out there who actually do work full-time don't have healthcare coverage. So they're actually looking for solutions here, too. Could this help them?

PILZER: Very much so. We've seen a whole revolution now that the states have liberalized their individual insurance policy laws. Today you can purchase good, high-deductible coverage, which is all most people need, for about $90 a month per person in all 46 states and soon it will be in all states.

Individual insurance is by and large the way to go for most people, but most people are clueless about how to buy individual insurance. The big changes this year, a company can give you an allowance and say go buy your own, tax free. I'll reimburse you for it.

WILLIS: But I got to ask you. It sounds to me like, at the end of the day, if this is available and a lot of employees start moving into it, it's going to be added incentive for employers to say, you know, I'm not going give my employees some kind of health insurance coverage because at the end of day I don't have to. I know a lot of insurers don't give coverage now, but now it would be even more, given your scenario.

PILZER: Yes and that's actually a good thing because right now only 61 percent of the jobs in America have health insurance down from 69 percent three years ago. That's seven million people. Companies can no longer afford to provide health benefits and today you don't keep a job for life. You're much safer having health insurance that doesn't terminate when your job terminates. Health insurance with an employer is not insurance because the moment you get sick and can't come to work you lose your health insurance.

WILLIS: Well, I think you'd probably have people debate you on that idea, but let's just talk a little bit more here about how much you might be able to save eventually and whether this is -- your idea actually just helps people who are already really healthy.

PILZER: Absolutely. This is mainly for the 90 percent of American employees who are healthy. What's changed is that insurers are now allowed to accept or reject you whether or not you're healthy and when they accept you they're stuck with you.

They can never raise your premium under federal law for the rest of your life if you get sick once they take you. So 90 percent of employees who are healthy can get health insurance with the same benefits from their employer for about half the price and then the premium can't go up if they get sick.

WILLIS: Well, we thank you for your time today and good luck with your business.

PILZER: Thank you very much.

WILLIS: Returning now to our top story, the search for survivors goes on in parts of South Asia after a devastating earthquake rattles the region. The 7.6 magnitude quake truck parts of Pakistan, India, Afghanistan and the disputed territory of Kashmir. Hundreds of deaths have been and officials fear the toll to climb into the thousands. Across the region, whole villages were reduced to rubble. Anisa Zeib Tahirkheali, the Pakistani minister of state for information and broadcasting joins us now on the phone from Islamabad. What's the latest information you have?

ANISA ZEIB TAHIRKHEALI, PAKISTANI MIN. OF STATE FOR INFORMATION: Gerri, the relief work is underway and all the -- there is a disaster relief cell established at the prime minister's secretariat with a coordinating cell at the Ministry of the Interior.

The army has been called in and the search activity is really taking a hectic speed. There are search teams arriving at any time now, hopefully very soon, also going. Experts and the equipment has been gathered. All the resources have been pooled by the government, public sector, as well as private sector. And all of the citizens even are working zealously for the search of any victims that could be there. So they're trying their best to really do whatever is possible.

Hospitals have been really made alert. All the vacations have been canceled, paralegals called back doctors. And they are all coming out with help and hospitals have declared an emergency, different district headquarter hospitals.

Medications, medicine, supplies are being ensured by the health authorities. Provinces are also taking emergency relief measures. The army is also providing all of the necessary relief required at this stage.

WILLIS: Ma'am, can you tell us about the 250 bodies, these young students who were pulled from a school. Do you have any additional information about that situation?

TAHIRKHEALI: It's really very sad because not many students were at their schools and this is something, the buildings were not -- I mean, did not have that shock absorption system and there are many -- a number of students, we are not sure about the exact figure, but these bodies are examined. The numbers could be more than that.

Many students, children and women are mostly the victims and the number could go, unfortunately, to hundreds. I can't really tell you because all of the dead bodies and also the injured ones are being taken to the hospital -- the nearest hospitals possible and the coordinating unit is getting all the statistics in that case. But the primary concern right now is to get all those who are stranded or who are really buried under the rubble and you for that, you have to really be very careful and cautious because it is life which depends on that, the way you excavate and you just dig them out.

So it is also a serious matter. The northern part is also hit by the rains which is really hampering the relief work and nightfall is already there, but extra emergency generators and light systems have been arranged to get the relief work done throughout the night.

WILLIS: Well, Anisa Zeib Tahirkheali, thank you so much for being with us and filling us in on the details of this. She is the Pakistani minister of information. Thank you for that.

We're going to go now live to Satinder Bindra who is in Islamabad and she's available by beeper, I believe, to talk with us about this. Tell us exactly where you are.

SATINDER BINDRA, CNN CORRESPONDENT: Gerri, I couldn't hear you clearly there, but I'm right outside a collapsed apartment complex in the Pakistani capital, Islamabad. Now there are a few hundred residents who are in this area. They're all watching a very intensive rescue operation that's ongoing, heavy machinery has now been brought to this apartment complex.

There are diggers, there's cranes and there's more on the way and all through this neighborhood nobody is staying indoors. Everyone is outdoors. They're still fearing aftershocks and there's a feeling of absolutely numb disbelief here in this neighborhood where I am.

The death toll from this earthquake across Pakistan, India and Afghanistan now stands at 856 dead. Most of the dead, about 60 or so are in Pakistan and the majority of those dead are in the northwest frontier province. This earthquake, of course, measuring a 7.6 in magnitude that's being described as one of the most intense in the region in about a hundred years -- Gerri.

WILLIS: Satinder, do you have any idea how many people might be trapped in the apartment building?

BINDRA: Authorities here are telling us that there could be more than a hundred people still trapped inside this apartment complex. Let me describe what I'm seeing here, Gerri. One apartment tower has just collapsed on itself. It's just pancaked right to the bottom.

There are rescue and relief officials now standing on top of this collapsed apartment tower complex. They're digging. Some of them are actually even using axes to try and break their way inside.

Now, this is reinforced concrete, so my sense is it will still take them a few hours before they can dig deep inside, but lights have been set up in this area and the activity that's going here is going ahead at a very frantic pace. Of course, everybody here standing. People are standing and watch ...

WILLIS: I think we might have -- I think we're having a little trouble hearing the end of Satinder Bindra's report, but we thank him for that. We are going to be staying on this story. Be sure to stay with CNN for continuing coverage of this major earthquake. We'll have live reports throughout the day. We are going to be right back after this short break.

(COMMERCIAL BREAK)

WILLIS: They're scattered across the United States, far from home, confused, worried and now thousands of children whose lives were forever changed by Hurricane Katrina are struggling to face their new futures. Elizabeth Cohen has some of their stories.

(BEGIN VIDEOTAPE)

ELIZABETH COHEN, CNN CORRESPONDENT: Their stories are heartbreaking as the uncertainty surrounding their future.

UNIDENTIFIED MALE: The hurricane came, her name was Katrina. She took away my house, most of my family, most of my friends, my school, everything, really.

COHEN: Stories of survival nightmarish, at best.

(on camera): How long did you spend in your attic before they came to get you with the boat?

UNIDENTIFIED MALE: A week.

COHEN: A week in your attic?

(voice-over): Young lives up ended, uprooted, overwhelmed.

UNIDENTIFIED FEMALE: So now I am just in a shelter until my mom finds us a home to go to, because I don't have a home to go back to in New Orleans.

COHEN: Innocent children reliving the trauma of Katrina.

UNIDENTIFIED MALE: OK. I want you all with your eyes closed to remember that you're in a safe space. It's a contained space. No one is going to hurt you. You are safe. You're valued.

Dr. Eric Green (ph) is a children's counselor from Johns Hopkins University.

UNIDENTIFIED MALE: At the count of three slowly open your eyes.

COHEN: For nearly two weeks in September, He worked with a grew of evacuated children at Crestwell Elementary School in St. Landry Parish Louisiana.

UNIDENTIFIED MALE: Did parrot lose his house too?

UNIDENTIFIED FEMALE: Yes.

COHEN: Caroline Green (ph) is 9 years old and what this third grader has a hard time saying, her puppet says quite easily.

UNIDENTIFIED FEMALE: The hurricane came and blew down his house.

(END VIDEOTAPE)

WILLIS: That was Elizabeth Cohen reporting. For more stories of concern struggling to rebuild their lives in the wakes of Hurricanes Katrina and Rita, tune into CNN tonight at 8:00 Eastern for an all new "CNN PRESENTS CHILDREN OF THE STORM."

Flooding across South Carolina. Is rained headed your way? We'll have a weather update straight ahead.

(COMMERCIAL BREAK)

WILLIS: Parts of upstate South Carolina are slowly drying today after torrential rains flooded the area yesterday. Emergency officials had to rescue several people stranded in the flood waters. Police say the weather was a factor in more than a hundred auto accidents. Meteorologists say the storm was caused by tropical moisture associated with remnants of Tropical Storm Tammy.

Now to our meteorologist, Rob Marciano, who takes a look at the weekend weather.

(WEATHER REPORT)

WILLIS: We have got more ahead on CNN SATURDAY. In a few moments, "IN THE MONEY" with Jack Cafferty. And at 2:00 Eastern, it could be a tough road ahead for Harriet Miers. Our legal experts will discuss (ph) the president's new Supreme Court nominee. And at 3:00 Eastern it's "CNN PRESENTS TRACKING THE MONSTER STORM." CNN goes inside the frantic effort to track a killer storm as it roars toward landfall, but first Jack Cafferty with a preview of "IN THE MONEY."

JACK CAFFERTY, CNN ANCHOR: Thanks, coming up on "IN THE MONEY," give me shelter. With new numbers coming to Wall Street, see if Hurricanes Katrina and Rita are slamming the economy. Also ahead, over a barrel. Find out what happened to all that cheap Iraqi crude that America was expecting to be pumping by now.

And party like it's 1973. We'll look at energy-saving moves from the past are suddenly popular once again. All that and more right after a quick check of the headlines.

(COMMERCIAL BREAK)

WILLIS: I'm Gerri Willis at the CNN Center in Atlanta. Here's what's happening now in the news.

The death toll is climbing in South Asia after the region's strongest earthquake in more than a century.

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