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Insurgent Group Claims Responsibility for U.S. Helicopter Crash in Iraq; Congressman Bob Ney Stepping Aside; Embedded in Iraq; HHS Secretary Discusses Confusion Surrounding New Prescription Drug Program

Aired January 16, 2006 - 14:00   ET

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

KYRA PHILLIPS, CNN ANCHOR: Iran's newly resumed nuclear activities have sparked a tense global standoff, and it seems to be mushrooming day by day. The issue tops the agenda today in London, where diplomats from the U.S. and other global powers are meeting. The session drew some anti-nuclear protesters. It also drew an urgent call from the U.S., who wants the U.N. nuclear watchdog agency to meet as soon as possible on Iran.
But other nations are more cautious. Britain and Russia are warning against a rush to sanctions.

The U.S. fears that Iran is on the path to building a nuclear weapon. Iran says it's simply trying to develop nuclear energy.

One of the concerns about U.N. sanctions against Iran is, how could it affect the price of oil?

Here's a quick check of the facts on Iran's oil industry.

(BEGIN VIDEOTAPE)

PHILLIPS (voice over): Iran is the world's fourth largest producer of oil, producing more than twice as much as Iraq in 2004. Not surprisingly, Iran is also fourth in world oil exports. Its biggest customers are Japan, China, South Korea, Taiwan and Europe.

Sanctions have kept Iranian oil from being exported to the United States for more than a decade. There's still a great deal of oil under the ground in Iran. It currently has the world's third largest oil reserves. The only nations with larger reserves are Saudi Arabia and Canada.

Although Iran still has to import about a third of its gasoline, the price of a gallon is less than 40 cents because of government price controls.

(END VIDEOTAPE)

PHILLIPS: Well, for the third time in 10 days, a U.S. military helicopter has crashed today in Iraq, and an insurgent group is claiming responsibility.

Let's go straight back to the Pentagon with CNN Senior Pentagon Correspondent Jamie McIntyre. And Jamie, I've actually been typing you messages via computer, and then I forgot where you are. So you are going to get all these messages from me saying, "Explain to me how the AP got this videotape and how is the U.S. military trying to confirm that if indeed it is real."

JAMIE MCINTYRE, CNN SR. PENTAGON CORRESPONDENT: Well, there's two pieces of videotape here, and I'm not sure which one we have racked up first. But one is a piece of tape that simply shows smoke coming out from the distance, and that appears to be the aftermath of the crash today of a U.S. Army Apache helicopter which went down in a swampy area near Taji about 8:20 this morning.

The U.S. military is confirming that. They are confirming that the pilots are dead. But they are not confirming that it was a result of hostile fire. That's still under investigation.

Now a second tape posted on an Islamic -- Islamist Web site is part of a claim of responsibility by insurgents in Iraq. That purportedly shows a shoulder-fired missile being fired at the helicopter and bringing it down, but the U.S. military is disputing the authenticity of this.

They say after looking at it, they think it was either shot either at dawn or dusk, which is inconsistent with the time that the helicopter went down. They also believe from looking at when it was posted originally on a Web site, that it might have been posted even before the incident took place.

So they think that it's a case of insurgents trying to use some old video from a previous incident to increase their publicity about this downing of a helicopter today, which remains under investigation.

It does appear that another incident on Friday in which a Kiowa scout helicopter went down was a result of hostile fire. Two pilots died in that incident as well.

And then there was another incident, as you said -- in the last 10 days there have been three -- a Black Hawk, last Sunday, a week ago Sunday -- actually Saturday night just before midnight -- went down killing 12 people on board, eight soldiers, four civilians. That's under investigation, bull it may be that bad weather was a factor in that crash.

PHILLIPS: So Jamie, just as we were talking, and I was asking these questions, Major General Don Shepperd e-mailed me. I just want to read you this line.

You know, he's always talking with his contacts there at the Pentagon, as are you. It said that it looks like to him -- he saw this video and it looks bogus to him because the missile fired did not display the characteristic corkscrew pattern of shoulder-fired IR missiles, especially when fired at a low angle close to the ground such as was the one that we saw on the videotape.

So I'm assuming, Jamie, that your same contacts, they are studying the flight patterns of this missile.

MCINTYRE: Well, they are looking at all the characteristics of the tape. They don't think it is genuine.

However, I have to say, from covering this for a long time, you know, when you are using sort of gerry-rigged weapons in sort of this kind of environment, you know, everything doesn't always go according to the textbook. It sometimes turns out that even though it looks fake, it turns out to be real.

In this case, though, the military, after taking a look at this, they are voicing a lot of skepticism. They think it's basically a propaganda ploy.

PHILLIPS: All right. Jamie McIntyre live from the Pentagon.

Thanks, Jamie, for straightening that out.

Well, today Iraq's Electoral Commission invalidated entire ballot boxes from the December 15 national election, but officials say that the boxes thrown out for fraud held less than one percent of the vote and the final result will be largely unaffected. They say the boxes in question were stuffed with fake ballots from regions across the country.

Fraud claims by Iraq's minority Sunnis have delayed the vote counting, and uncertified results could be released this week. But final certification isn't expected until early next month.

Vice President Dick Cheney is back in the Middle East. He arrived in Egypt today for a brief tour of the region. Cheney will meet with Egyptian President Hosni Mubarak tomorrow. He will then travel to Saudi Arabia for talks with King Abdullah.

And form there it's on to Kuwait. The vice president added that leg of the trip at the last minute. He is going to offer condolences after the death of the country's emir.

A congressman implicated in the Jack Abramoff investigation is stepping down from his leadership post, but he says it's only temporary. Court papers allege that a House member identified only as representative -- "Representative One" rather, took gifts in return for helping Abramoff's clients.

Sources say "Representative One" is Ohio Republican Bob Ney. Well, he's chairman of the House Administration Committee, which would be in charge of implementing any reforms growing out of the Abramoff probe.

Yesterday, Ney announced that he will leave his chairmanship until he can clear his name of what he called false allegations.

CNN Congressional Correspondent Ed Henry is on Capitol Hill.

Ed, did Congressman Ney jump, or was he pushed?

ED HENRY, CNN CONGRESSIONAL CORRESPONDENT: I think he was pushed, frankly.

Speaker Dennis Hastert has been under great pressure from conservatives to get Ney out of the way. They feel that he's been an embarrassment because, as you mentioned, he has been identified as "Representative Number One" in the Abramoff plea deal, basically a congressman who took a series of gifts from Abramoff and his business partner, Michael Scanlon, including a lavish golf trip to Scotland, in exchange for all kinds of officials acts here on Capitol Hill.

And just think about what the late-night comics might have done, what kind of field day they may have had if it was Bob Ney, who was in charge of the congressional hearings to clean up the lobbying business, when he himself is under investigation -- Kyra.

PHILLIPS: As this has continued to develop, you know, we have talked about so many other names that could be mentioned and would come out during this probe. Is this just the beginning? Do you think we are going to hear of more names?

HENRY: I think it is just the beginning. Nobody knows for sure how many more shoes will drop, but frankly, that's why, in fact, Bob Ney was pushed.

I mean, he would say that he was the one who stepped aside himself, and that's true, but he was under great pressure from Republican leaders, and that's because these leaders are extremely nervous. They are running scared that there will be more Republican lawmakers and staffers implicated.

In fact, CNN has already reported there are two dozen lawmakers and staffers on the Hill who are under scrutiny. It doesn't mean that many will be charged -- probably fewer will be charged -- but they're under scrutiny. People are running scared up here, and Republicans in particular are nervous that this will be the dominant issue in the midterm elections -- Kyra.

PHILLIPS: So you think it will play an effect on the elections coming up?

HENRY: There is no question it will be a factor. Just the only question now, I think, is how big of a factor.

Republicans certainly trying to make this a bipartisan scandal because Abramoff did have some contacts on the Democratic side of the aisle. Democrats pushing back pretty hard and saying, look, this was a Republican lobbyist, the great majority of his contact, all of his personal money out of his own pocket went to Republicans.

So that's the only question, just how deep will it go? And that in part will depend on just where the Justice Department takes this investigation.

Leaders up here scurrying to try to pass reform legislation. But that will only be a Band-Aid, perhaps, if people are sent to jail -- Kyra.

PHILLIPS: All right. Ed Henry live from the Hill.

Thanks, Ed.

HENRY: Thank you.

PHILLIPS: The family of Israeli Prime Minister Ariel Sharon is reporting new developments in his condition today. Hospital officials say that relatives at his bedside noticed that Sharon moved his eyelids. Some Israeli Web sites even quote Sharon aides as saying he opened his eyes. But the hospital denies that.

It also says the medical significance of the eyelid movement isn't clear. Doctors describe Sharon's condition as critical and stable 12 days after he suffered a massive stroke. He remains in a coma.

Covering the war in Iraq, what's it like to be a female journalist covering the war, often embedded with U.S. troops? Arwa Damon shares her personal experiences.

The news keeps coming. We are going to keep bringing it to you.

More LIVE FROM after this.

(COMMERCIAL BREAK)

PHILLIPS: The fourth bird flu fatality in Turkey today. Tests on a 12-year-old girl who died yesterday have proved positive for the deadly H5N1 strain of bird flu.

The girl lived in the town of Van, which became ground zero for the outbreak of the disease in Turkey. The victim's younger brother has also tested positive for bird flu. Both siblings have reported contacted with sick birds.

Meanwhile, a World Health Organization lab will test sample from an Indonesian girl who died of suspected bird flu.

The Reuters News Service is reporting a Palestinian chicken farmer has tested negative for bird flu. The man went to Jerusalem's Hadassah hospital after falling ill and told reporters -- or told doctors, rather, that several of his birds had died. Hospital officials put him into isolation until tests came back negative.

Let's talk about covering Iraq. It's a dangerous job, for sure, and one that any reporter worth his or her salt would jump at the chance to have.

CNN's Arwa Damon was working the Baghdad beat before the war even began, and since then she's been embedded with U.S. military forces in nearly all the major actions against insurgents, including the epic offensive in Falluja.

She's checking in here in Atlanta, and she's here to tell us how I guess we could say dangerous, exciting, nerve-racking, all of the above, right? All the above? ARWA DAMON, CNN CORRESPONDENT: Exactly. It's this crazy roller- coaster of emotions that you go through. And it's pretty much anything that you could possibly fathom feeling.

It's fear, it's adrenaline, it's apprehension, it's happiness, it's sorrow. It's absolutely everything. When you go through even just on a daily basis, when it is not a major operation, no matter what you are doing, you are always going through this crazy roller- coaster of emotions.

PHILLIPS: You know, Becky Diamond was saying she always calls her fiance and her mom and just says the "I love you" before she goes out to do anything dangerous.

Do you make those calls?

DAMON: I call my parents every night. I have to, otherwise my mother absolutely, totally is beside herself. And I call and I usually try to keep out the details of, you know, what I'm doing. And once in a while they figure out.

And she's very worried. But yes -- no, I definitely make those calls.

PHILLIPS: Well, until now -- because we're going to use your personal photos to kind of show what it's like. So your mom is probably going to be really upset with you because she is going to really see how you live and work. But I thought we would start off with the pictures of just sort of day to day what it's like to eat, sleep, and even bond with the military and the locals.

Here, one thing about Iraq -- I remember this, too, being there -- all the stray animals.

DAMON: Yes.

PHILLIPS: And this was a little dog that you all tried to save and adopt. Little Recon (ph)?

DAMON: Yes, that's right. The U.S. soldiers had found him. Actually, they had gone through all these homes and they had shot his mother. And he was the one puppy who had survived, and they were trying to save him.

He kind of became their mascot throughout the actual fight for Falluja. And as they're going through searching house to house, they'd kind of pass him off to whoever it was who wasn't busy at that time. And I got my hands on him a couple of times. It was very touching.

PHILLIPS: One of those moments.

Let's talk about how you slept, how you passed the time. Some of these, I think, are the best shots that you took, basically inside the armored personnel carrier passing the time, obviously playing cards. A very popular way, but that's interesting because it seems like such a relaxed moment. But at any moment there could be an explosion or there could be an attack, right?

DAMON: That's very true. And, you know, the military describes combat as 98 percent sheer boredom, two percent pure adrenaline. And in those moments where it's "sheer boredom," you are trying to find ways to entertain yourselves, and whether that's playing cards or cracking jokes or just having sometimes the kind of conversation you could imagine having with your friends at a coffee shop or at a bar, except you're having it in the middle of combat zone, sometimes sitting on top of piles of rubble.

And it's very surreal. It really is very surreal.

PHILLIPS: And something else that is so precious, and that is getting any moment to sleep, whether it's inside the vehicle or on the outside of the vehicle. And I know that you took some shots of -- I mean, tell me that is uncomfortable.

DAMON: You know, Kyra, under any other circumstance, I would say it was very uncomfortable. But when you're there, and as you are going through this, you would be surprised at what you find comfortable.

Sleep on top of your flak jacket as you are seeing there on hard, cold cement is very comfortable, actually. Your helmet makes an excellent pillow when you are in combat.

PHILLIPS: You're actually so tired, it doesn't matter how you are sleeping.

DAMON: Exactly.

PHILLIPS: And this here was after an overnight operation. Is that right?

DAMON: That was the fight for Falluja. It was the first morning as sun came up after the Marines had bombed Falluja for the night. And we were on the highway overlooking the city waiting to move in. And I was just trying to catch whatever I could at that point in time.

PHILLIPS: You got creative, too. You started taking pictures of everybody else that was with you. The reporter Ann Bernard (ph) from the "Boston Globe," she got very creative with her little setup here.

DAMON: Yes. She did. We'd found -- actually, the soldiers had found those mattresses in one of the homes and borrowed them and brought them out for us, the blanket as well. And as you can see, yet another stray dog. We ended up with quite a pack around us at that point in time.

And I can tell you, I spent a couple of nights on a mattress like that. And it is quite comfortable compared to the alternative.

PHILLIPS: Well, that's a homerun, you know, compared to the cement; right?

DAMON: Absolutely. PHILLIPS: You were talking about Falluja. Boy, one of the operations that we will never forget, the fierce firefights that took place.

You really got an inside look of how the planning went down for Falluja. Let's talk about the mapping briefs that you got to be a part of. And we have a couple of photos of this as well.

Tell me about how they prepared.

DAMON: What you're looking at right there is what they call a rock drill. And essentially, they build a map of the entire city with bricks, and then each company, each unit that's involved literally moves forward on top of these bricks, through it, and explains what their plan is, which target houses they have, which ones they are deeming more important than others, and how they are going to actually, as they say, attack each one, take control over each one.

And as reporters who are there, we are allowed to view this because we also need to know what we're getting -- what we're getting into. And it's also for our own background purposes when we eventually are going to report on the offensive and we are going through with the soldiers and the Marines.

PHILLIPS: As we look at these pictures -- and I know there's another briefing that we have a picture of, too -- you really are up close and personal, seeing how they are planning and organizing and strategizing. It seemed that they embraced you and they trusted you. And they -- I mean, your access was extremely strong.

DAMON: They do. And it's not just us. It's most of the reporters, especially when you go through something like Falluja and you were there with them, there is a certain level of trust there. They allow you to see the maps, to see the briefings, to be really a part of everything, trusting that you will not violate what they call operational security, you will not disclose information that will either jeopardize the mission or jeopardize the safety of the troops.

PHILLIPS: Reality check pictures. This one meant a lot to you with the tricycle. Tell me why.

DAMON: Especially in Falluja. You're going through, and the area that we were in, that CNN was in, was completely deserted of civilians. And Falluja was such a mystery. No one really knew what was happening there.

And as you're going through all of these bombed-out buildings, you see these traces of the civilian life that must have been there at one point in time. You see, for example, like the photograph a child's tricycle. You see a teacup.

And it's really unnerving. And you are trying to imagine, who was this? Who was this family? Where did they go? Were they frightened? Why did they leave?

And you are really trying to figure it out. But you have no way of actually knowing.

PHILLIPS: Probably one of the other most powerful moments, just watching this commander address all the men and women, knowing that as they send them out, it's probably the last time you are going to see some of these guys and these women, as well as the commander. And I know you asked him about that.

DAMON: Yes, I did. It was Lieutenant Colonel Pete Newel (ph) addressing his soldiers right before -- right before the battle.

And I remember looking at him and looking at them, and I asked him, you know, "What do you say to these guys?" You know, "You go out there and you know for a fact that they are not all going to come back." And he just looked at me and he said, "They're my family."

And I remember at that point being kind of overwhelmed and wondering where he gets the strength or whatever it is he's drawing from within himself to address these people that he considers family knowing that they are not all going to all come back, actually.

PHILLIPS: And you are going back, right?

DAMON: Yes, at the end of the month. Yes.

PHILLIPS: Arwa Damon. All right.

We will check in with your mom, let her know that it's all safe, it's OK.

DAMON: Please do.

PHILLIPS: Incredible stuff, truly. You really are one of the bravest individuals that we know. We so appreciate your time. Thank you.

DAMON: Thank you.

PHILLIPS: All right.

Well, frustrated by glitches, angry seniors and too many questions...

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: And I've blown up at people that I had no right blowing up at.

(END VIDEO CLIP)

PHILLIPS: Pharmacists reacting to the new Medicare prescription drug benefit plan. If you are on the plan or you have questions about it, help is on the way. You can even e-mail us. Give us your questions about what you want to know.

The news keeps coming. We are going to keep bringing it to you.

Mike Leavitt, secretary of Health and Human Services, joining us live to answer your questions. E-mail us: livefrom@cnn.com.

(COMMERCIAL BREAK)

PHILLIPS: Frustrated seniors, frustrated pharmacists. The new Medicare prescription drug benefit plan was touted as a boon for seniors, but many people now are finding that they are not covered even though they signed up. And catching a lot of flak, pharmacists across the country included.

Ralph Bertolino is one of them. He runs a family-owned pharmacy in South Philly.

Ralph, tough time right now for you.

RALPH BERTOLINO, PHARMACIST: It's tough for me and it's tough for the patients.

PHILLIPS: Tell me what it's like on a daily basis. Just, you know, you get up at what time, get into work, and what's just the most frustrating part of the day right now?

BERTOLINO: The most frustrating part of the day is when you have a customer, and she asks for help, and she gives you a phone number to call, which might be, you know, insurance company x, and you are on the phone for a good 45 minutes. And at the end of that phone call, you have accomplished nothing. And it's crazy.

PHILLIPS: All right. Tell me why you are not accomplishing -- is it because the seniors are not on your -- on the government list that you are supposed to have your hands on? Is it because they don't have the proper paperwork? What is it that they are coming in and you can't figure out quickly like you used to?

BERTOLINO: They have no paperwork. They don't have any idea what plan they're on. Some people are unaware their changed to a plan.

I have had people call me, you know, like a customer call and say, I was told I was on plan x. I will call plan x. "Could you help me with Mrs. Smith? I need to get her ID number, her information." And when the phone call is done, we have no record of this person. So...

PHILLIPS: Are you -- are you -- is this costing you anything financially?

BERTOLINO: Financially?

PHILLIPS: Yes.

BERTOLINO: In a sense. I mean, our customers -- I mean, we have been in business since 1925. And it was my grandfather's pharmacy. And we have been giving out like a week's supply of medication at our expense to patients that are not in the system who we know can't afford it, who need help, and we're going to, you know, hopefully recoup our money when the system rights itself. PHILLIPS: Do you feel that any patients are at risk health-wise, or are you doing everything you can just to provide them with what they need?

BERTOLINO: I feel that our pharmacy is doing everything possible to help them and prevent any health dangers, but you might get a pharmacy who is not as, say, cooperative or sensitive, or who is too overwhelmed with all the glitches and can't, say, be bothered to give out a seven-day supply at the cost of the pharmacy.

PHILLIPS: Interesting. So some pharmacists could say, look, I'm not shelling out of my own pocket.

BERTOLINO: Exactly.

PHILLIPS: Too bad. And that -- you feel that could be -- I mean, just knowing what you know about being a pharmacist, I mean, these are patients that depend on these medications for life support on a daily basis?

BERTOLINO: Yes. I mean, we've had a woman since the first of the year, she's an amputee, diabetic, a very sick woman. She's been a customer from when my grandfather was alive, and she has -- we have -- I mean, we are as close to finding out where her insurance coverage is today as we were the first day of January.

PHILLIPS: Wow.

BERTOLINO: I mean, she's had -- there's an organization here in the city called the Philadelphia Corporation of the Aging, and she had -- she has a counselor there or a caseworker, or whatever, and this person has called me and asked me to help her and told me that she -- theoretically, I found out she is in plan x.

I called plan x, spent 40 minutes, 45 minutes trying to figure it out. Plan x says they have no record of her.

I called back this caseworker at the Philadelphia Corporation of Aging, and she says, oh, no, I think it's plan y. I called plan y, do the same whole thing over again, plan y has no record of this person.

And it's -- you know, it's frustrating. It is frustrating for the amount of time that I will spend on the phone and get nowhere. And it is frustrating for the patient. Right now, this woman, this older woman, I know she's scared and afraid.

PHILLIPS: Well, I will tell you what, we are going to take these fears, and we are going to take your frustrations and put them right to the secretary of Health and Human Services. So stay with us, Ralph. I will have you listen into this interview.

BERTOLINO: OK.

PHILLIPS: And maybe Michael Leavitt will be able to answer some of these questions and concerns that you have. We have been talking a lot about critics saying that seniors are just facing choice overload and they are responding to the new Medicare prescription drug plan in one of three ways: freezing up and not making a choice, making the wrong choice, or making the right choice and second-guessing it.

Let's try and get some answers now. Health and Human Services Secretary Michael Leavitt joins us now live from Washington.

Mr. Secretary, glad to have you with us.

I'm assuming you heard the pharmacists story there about the frustration and confusion. What do you say to pharmacists like Ralph Berlino right now that are just frustrated as heck trying to take care of their customers?

MICHAEL LEAVITT, HHS SECRETARY: First of all, to Ralph and to his colleagues, particularly in the independent pharmacies that he represents, we just want to say thank you for working so hard on behalf of your customers.

The good news is it is not going nearly as badly as Ralph suggests in most of the pharmacies across the country. We are filling about a million prescriptions a day already. People continue to sign up for the plan. In fact tomorrow I will be announcing nearly -- more than two million people have signed up during January, far more than we expected.

We are having to work through, having to iron out a lot of wrinkles in the system with particular people. The thing I'm saying to seniors is if you go to a pharmacy, don't leave without your drugs. There are ways in which the pharmacies have to work it out.

I don't know much about Ralph's situation, but if they will use the system that's been provided and if they can't find it, then they can go to -- they can call the 1-800 line. We've multiplied by 400 percent the number of operators devoted to pharmacists.

We know that each time a person goes the first time, there's a chance we'll have to work through some wrinkles, but the vast majority of those who go are getting their drugs. We don't want anyone, I want to repeat this, we don't want anyone not to have their drugs. When they go, we will find a way for it to happen and for them to leave the first time with those prescription drugs.

PHILLIPS: Secretary Leavitt, I mean, it sounds to me that you think it's not as bad as how Ralph is portraying it. I got to tell you, we've been reading various articles from all over the country, and we're hearing the same complaints. Even here in our newsroom, there's a lot of people with elderly parents.

I can name at least three in our group just alone in our show team just talking about how their pharmacist was in tears the other day because she couldn't help everybody, and she was totally overwhelmed to trying to call that 800 number and not being able to get the information that they needed. Also, pharmacists calling insurance companies. Insurance companies being confused. Then names not even being on the government list. Here were patients waiting hours and hours at various pharmacies just not knowing what to do. I guess, what's happening right now at this moment that's going to help alleviate the stress and the frustration, especially for these seniors who, like Ralph said, need their medications right now?

LEAVITT: Well, first, I do want to say again thank you to Ralph and to other pharmacists. As I indicated we have had over a million prescriptions a day that are being filled, and so many people are having a better experience than what Ralph described.

We don't want to minimize the fact that it's clear that some people are having to work out some problems the first time they take their card to the pharmacy. At this point we have multiplied the number of people who are working with pharmacists by 400 percent, and so we're encouraging pharmacists.

First of all, we want them to be clear that if they help their customers, we are going to make sure they get paid, and second of all, we provided a system so that they can check on a plan, and if they are not able to, they can make the call. We know that this is requiring some additional effort on their part and we want to express our appreciation.

I do want to emphasize that not everyone's having the experience that has been described. Until everyone is not having that experience, we won't be satisfied. We clearly need to work through this. This is the biggest change in health care in forty years, and it's happening all at the same time, so we're all going to have to work through it together, and we want to make certain that no one is without their prescription drugs. That's the most important thing.

PHILLIPS: But what about those that are not able to get it at this point? You are saying that pharmacists will be reimbursed; is that true? If there is a pharmacist who is struggling today, they are watching this interview. They are trying to help the customers, you are saying that pharmacists that are paying out of their pockets will be reimbursed?

LEAVITT: I want to make clear to any customer who goes to a drugstore, they should not leave without their drugs. I'd like to say clearly to those pharmacists, that we'll make sure that the plan pays what the plan is intended to pay under their contract.

We want them to work, as Ralph is, as others are, to make certain that we're dealing with the most difficult cases. Most of them tend to be people who are in a group called 'dual eligibles.' They are people who may not have been directly or personally involved in choosing their plan. It may have been chosen by the state.

I'm going to be going next week -- or this week rather, with a lot of my colleagues out to all of the states who are having trouble. We are going to get through this. It may take a little bit of time for people the first time they come to the pharmacy, but we'll get there.

People, literally millions of people now, are enjoying the benefit of having prescription drugs who didn't before. We are having to work through some problems as we initiate this, but the pharmacists have been working hard like Ralph, and we deeply appreciate what they are doing. The plans have multiplied the number of people that they have retained to help work through problems.

Gratefully not everyone is having a problem. Again, about a million prescriptions a day being filled. Nearly two million people that have signed up in January, so there's a lot of good things that are happening. We are hearing about these problems, and we're doing everything we can to respond to it.

PHILLIPS: Secretary Michael Leavitt, we look forward to hearing about the changes that will be made and make sure all those individuals do get the drugs they need. Thank you, sir, for your time.

LEAVITT: Thank you.

PHILLIPS: He told Senators what they could do with their questions in the oil-for-food scandal. Now this politician is making it like a kitty on TV. The outrageous news keeps coming. We'll keep bringing it to you. More LIVE FROM right after this.

(COMMERCIAL BREAK)

(SINGING)

PHILLIPS: Praise and thanksgiving on the 20th anniversary of the national holiday honoring Martin Luther King, Jr. Activists call it a day on, not a day off, a day of service to God and neighbor and community, but this year it's also a day of reckoning for the brick and mortar memorial to Dr. King's legacy and the family that oversees it. CNN's Rusty Dornin brings us up-to-date now on the ceremonies and controversies from downtown Atlanta. Rusty?

RUSTY DORNIN, CNN CORRESPONDENT: Well Kyra, very patient crowd here. Thousands of people who have been waiting. The march taking place this afternoon. A couple of thousand people. I understand it is one of the smaller marches that have taken place in the last few years. It appears most of the people came for the rally.

Literally there are thousands of people waiting here for them at the Old Ebenezer Baptist Church where earlier there was a service commemorating Martin Luther King, Jr. This is the church where he was a pastor for eight years during the 60s during the civil rights movement.

One thing that's been marring these festivities has been a controversy involving the King children and the King Center. There's a division among the children about a possible sale of the center to the federal government.

(BEGIN VIDEO CLIP) REV. BERNICE KING, MARTIN LUTHER KING'S DAUGHTER: I think it's very important for people to begin to realize the importance of keeping the King Center as an independent vehicle of sorts.

And what I mean by that is my father always had an independent voice in the sense of being able to constructively critique this government. And a lot of times if you're housed in a building that's owned by the federal government, you're a little more uncomfortable doing something like that, and so you lose that essence.

(END VIDEO CLIP)

DORNIN: Now, Martin Luther King, Jr.'s oldest son Dexter was the only one to attend the ceremony today. He's in favor of the sale. He feels it is very important to go ahead and turn it over to the federal government now because there is a need of very serious repairs, $11 million worth of repairs. And he feels the federal government will be able to take care of that.

There is no formal proposal on the table right now, so we'll have to see what happens. But there is a lot of controversy splitting the King family. There will be after this parade is over a rally this afternoon. Again, all in commemoration of the 20th anniversary of the naming of the national holiday for Martin Luther King, Jr. -- Kyra.

PHILLIPS: Well, within the controversy, Rusty Dornin right there in the middle of the parade route. Rusty Dornin, thank you so much.

Well, few would say the dream that Dr. King articulated has more than partially realized, even in 2006. But by one measurable standard, progress is undeniable. The Associated Press compared median incomes of African-Americans and whites beginning in 1955, the year Rosa Parks gave rise to the civil rights movement by the simple act of sitting. That year, the median annual income African-Americans -- median being the midpoint of the range -- was 43 percent the median income of whites.

In 1968, the year of King's assassination, blacks' income had risen to 63 percent of whites. By 1986, the first national observance of Martin Luther King Day, income mounted to 68 percent of whites. And in 2003, the most recent available data, the figure was 81 percent.

(MARKET REPORT)

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MELISSA LONG, CNN.COM CORRESPONDENT: If you've resolved to land a new job in the new year, start your search by checking out some of the top places to work at CNNmoney.com. "Fortune" magazine has compiled its annual list of 100 best companies to work for. Included in the list for 2006, a store dedicated to organization, a consulting group in New England and a privately owned grocery chain in upstate New York. Also check out this state-by-state breakdown of top companies. California ranks number one, with the most businesses on the best places to work list. And if the extras are a big factor, check this section on unique and often unusual perks. Timberland offers employees a $3,000 subsidy to buy a hybrid vehicle. And Smuckers, the century-old jam company, says it will cover 100 percent reimbursement for tuition. You can find it all at CNNmoney.com/bestcompanies.

For the dot-com desk, I'm Melissa Long.

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PHILLIPS: If you are old enough to remember those classic Alberto Vio 5 commercials featuring international actress Rula Lenska, you might be surprised what she's up these days. But I digress. LIVE FROM's Rula-mania aside, our next story is really about an outspoken British politician news junkies here might be recognize and his bizarre antics on the U.K. version of "Big Brother."

CNN's Jim Boulden keeps an eye on the mayhem.

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JIM BOULDEN, CNN CORRESPONDENT (voice-over): People in the United States may remember British member of parliament George Galloway as the fiery Scotsman who took on members of the U.S. Congress over his alleged role in the Iraq oil-for-food scandal.

GEORGE GALLOWAY, BRITISH MP: If you had anybody who ever paid me a penny, you would have produced them here today.

BOULDEN: But his latest act is a far cry from the roar that was heard round the world. He was seen by millions of Britons pretending to be a cat on the show "Celebrity Big Brother" on Britain's Channel 4. Galloway was one the more surprising B and C-list celebrities to enter the "Big Brother" house in London just over a week ago.

His fellow housemates include actress Rula Lenska, basketball star Dennis Rodman and the model, who was the first to be voted out over the weekend.

So how is his latest role being received by the people he represents in the East End of London?

UNIDENTIFIED MALE: I think it's very inconsiderate of him, of the people of (INAUDIBLE) to be involved and just abandon them and just go for some -- from celebrity to real life show, something like that.

UNIDENTIFIED MALE: Yes, he's a bit of an idiot, really, isn't he? Should be back there doing his duty.

BOULDEN: When Galloway isn't pretending to lap up liquid from a bowl, his political views still can't be heard. The producers replaced some of his talking with chirping birds, for fear of giving him free airtime to plug his new political party, known as "Respect." His office said he probably wouldn't have bothered going into the house if he knew his voice would be censored. To be sure, Galloway will have plenty to say when he is voted out or wins "Celebrity Big Brother."

Jim Boulden, CNN, London.

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PHILLIPS: Countdown to the Golden Globe awards show. Our Sibila Vargas has secured our spot on the red carpet and is ready for the action -- Sibila.

SIBILA VARGAS, CNN ENTERTAINMENT CORRESPONDENT: That's right, the gold rush is on and I'll talk to one actor who is hoping to put a little hustle and flow into his game today when CNN LIVE FROM continues.

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PHILLIPS: Promises to be a dramatic award season in Hollywood and it officially starts tonight with the Golden Globes. Some of the stars nominated this year are enjoying some breakout roles. CNN entertainment correspondent Sibila Vargas is going to break out the dress as she joins us live from the red carpet. Hey, Sibila.

VARGAS: Hey, Kyra. That's right, I will be breaking out my dress but not just yet. But the stars should be making their way down from the red carpet all the way down and that's just some moments from now. But one actor in particular who is hoping to put a little hustle and flow into his game today is Terrence Howard. I sat down with him in Palm Springs to talk about his best actor nomination.

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TERRENCE HOWARD, ACTOR: It means we in charge. It means we got our hands on the wheel, we in charge. Not them tricks out there, we in charge.

VARGAS (voice-over): It's hard to find an actor more in charge and in demand than Terrence Howard right now. The 36-year-old has gone from playing background characters to a bonafide movie star.

(on camera): It's been quite a year for you, this last year.

HOWARD: Yes, but I think it's been quite a year for a whole lot of people. Look at Heath Ledger and Jake Gyllenhaal and, I mean, these cats, everybody seems to have turned up the gear.

VARGAS (voice-over): This Chicago born actor is in a class by himself. He broke out of the mold in 2005 and raised his Hollywood stop with films like "Hustle and Flow," "Crash," and "Four Brothers." Not to mention T.V. movie "Lackawanna Blues." And with those credits to his name came lots of recognition, nominations and some awards, including a Palm Springs International Film Festival award.

HOWARD: Look at what's happened to me. Look at what's happened to me.

VARGAS: In "Crash," Howard is a Los Angeles television director struggling with racism.

HOWARD: I mean, they were cops for God's sakes. They had guns. You know, maybe I should have let them arrest. I mean sooner or later you've got to find out what it is really like to be black.

VARGAS: And in "Four Brothers" he was a lieutenant inching closer to the truth.

HOWARD: And in 30 years, she only came across four lost causes, four delinquents so far gone she couldn't find anyone to take them in, so she did. Trust me, Father, these kids are congressmen compared to what they would have been.

VARGAS: And then came "Hustle and Flow."

(SINGING)

VARGAS (on camera): Did you think that that it could change everything, like that this was the role that is going to put Terrence on the map?

HOWARD: Yes, no Craig Brewer, I told him I didn't want to do the film for about seven, eight months, I just wouldn't even read it because of the subject matter. And he pushed and pushed and prodded. And I said, "All right, you know what? I'll do your movie."

VARGAS: I hear that for "Hustle and Flow," you made very little money.

HOWARD: Yes about $9,000 -- $9,000-to-$12,000 all together.

VARGAS: The monetary gain was scarce, but a bigger payday may lay ahead on Monday if he walks away with a Golden Globe statue for best performance by an actor in a motion picture drama.

(on camera): Where do you want to be in five years?

HOWARD: In five years I would have like to have laid a couple stones in that pathway towards success and wisdom. You know, for future generations.

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VARGAS: And it certainly has been a good year for Terrence Howard. We'll see if he walks away with the gold at the 63rd annual Golden Globe Awards. And of course, I will be here bringing for all the highlights. Kyra, back to you.

PHILLIPS: Is it true you sang for Terrence Howard?

VARGAS: I sure did.

PHILLIPS: And how exactly -- now, did you rap with him or did you whip out one of your Broadway specials?

VARGAS: Oh yes -- no, not the Broadway specials. But this was in the movie "Hustle and Flow." And it says, "You know it's hard out there for a pimp when you try to make money for the rent." A little X-rated.

PHILLIPS: Oh my god. You know, what ever happened to your future in show business? I mean, yes, you're working at CNN.

VARGAS: I don't know. I mean, even Simon Cowell said he would vote for me on "American Idol." But we'll see what happens.

PHILLIPS: Sibila, I wouldn't give up the dream -- Sibila Vargas, all right, we'll be following you. Thanks so much. Well more from the red carpet in the next hour of LIVE FROM, which begins right after a quick break.

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