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Dubai Ports World to Transfer Operations of U.S. Ports to a U.S. Entity; Medicare Drug Prescription Program Deadline Approaches For Elderly; President Bush Signs Patriot Act Renewal

Aired March 09, 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: A bombshell from Dubai Ports World. As you saw right here on LIVE FROM at the top, a Senate Republican announced last hour that the Arab company at the center of this political firestorm has agreed to give up its port operations in the U.S.
CNN's Andrea Koppel and Ed Henry are all over this story in Washington.

Ed, we'll start with you.

So as you were telling me, this deal, as originally constructed, it's dead?

ED HENRY, CNN CONGRESSIONAL CORRESPONDENT: Yes, I think we now have two pieces of evidence.

First of all, this morning, the fact that Republican sources tell us that top Republican leaders here on the Hill, Speaker Dennis Hastert over in the House, as well as Senate Majority Leader Bill Frist and other Republican leaders went to the White House this morning and bluntly told the president the political reality is such that they are going to kill the port deal as currently constructed, the one that we've been talking about for weeks now.

And while the president has said that he would veto any legislation blocking this deal, the leaders were saying they basically now have veto proof majorities, at least in the House, probably as well in the Senate because of all of the opposition that's building. So they were basically saying the deal as currently constructed is dead.

Then, as you noted, just moments ago, Senator John Warner, the Republican who has been trying to broker a compromise, he told me about an hour ago he was up through the night with officials from DP World trying to craft some kind of compromise, dramatically went to the Senate floor and basically said that DP World has now agreed to transfer fully all U.S. operations to a U.S. company.

Take a listen to what he said.

(BEGIN VIDEO CLIP)

SEN. JOHN WARNER (R), VIRGINIA: Because of the strong relationship between the United Arab Emirates and the United States, and to preserve that relationship, DP World has decided to transfer fully the U.S. operation of P&O Ports North America to a United States entity. This decision is based on an understanding that DP World will have time to effect the transfer in an orderly fashion and that DP World will not suffer economic loss.

We look forward to working with the Department of Treasury to implement this decision and statement. His highness, Sheikh Mohammed Al Maktoum, prime minister of UAE, has advised the company that in the interest of the UAE, the nation and the United States that this action is the appropriate course to take in the future.

(END VIDEO CLIP)

HENRY: So there you have it, the -- DP World basically saying that it would pull out of U.S. operations. Second piece of evidence that the deal, as it was constructed, is now dead. But the question is, does this new deal, the new setup, what's the fine print? Is it enough to quiet the Republican and Democrat critics up here?

Immediately after that statement, Democrat Chuck Schumer of New York, who as you've been noting has an amendment pending that would kill this deal altogether, no ifs, ands or buts, would just kill the deal, that is still pending. The Senate is about to vote on whether or not to consider the Schumer amendment or not. And we're waiting for that vote to get started on the Senate floor.

But I can tell you that earlier this morning, before Warner's announcement, a senior Republican aide in the House told me that it was highly unlikely that any deal that Warner could broker would fly over in the House. Because the way it was constructed yesterday, the 62-2 vote in the House Appropriations Committee to kill the deal altogether, that basically it -- the train has left the station in the eyes of House Republicans.

They don't want to fix this. They don't want to move things around. They want to kill it altogether.

But maybe John Warner, maybe the company, and the president, with the White House involved, can convince fellow Republicans on the Hill that this is a good setup. We have to read the fine print.

Chuck Schumer and others saying they still want to see exactly what this means, because nobody really knows what this divestiture will mean -- Kyra.

PHILLIPS: So if -- but we're reporting that it looks like DP World will not control or manage U.S. ports because of this announcement that Warner read by this company. So if that is truly the case, then wouldn't this amendment that Schumer has put forward, wouldn't that just be dissolved, wouldn't that go away? Isn't it a moot issue?

HENRY: Schumer said that -- in fact, just a few moments ago -- that the amendment is still valid in his eyes because, again, getting back to the fine print, just exactly what does that mean that they're divesting U.S. operations? Are they still, though, some sort of a partner in all of this?

What is -- what is DP World's -- DP World's role in all of this? I think that's what Schumer on the Democratic side, Republicans like Speaker Dennis Hastert will want to know.

Are they completely pulling out of that part of the deal? Does the other 90 percent of the deal go through and DP World walks away from the U.S. portion?

I think Andrea Koppel may better answer that. That's the question that folks up here in both parties want to know, because if DP World is still maybe not directly, but indirectly involved in the U.S. operations, it might not be enough to quiet the critics -- Kyra.

PHILLIPS: All right. We're going to bring Andrea in, in just a second, but I'm getting world we've got Wolf Blitzer joining us now.

As you know, Wolf, we watched your program live from Dubai, you had exclusive access to DP -- to the company, also to the head of the company. You gave us any side look to the operation there.

First of all, have you been able to get any reaction from those within the company structure at this point?

WOLF BLITZER, CNN CORRESPONDENT: I have not yet. I was busy taping an interview, Kyra, with the attorney general of the United States, Alberto Gonzales, which will air in "THE SITUATION ROOM." I asked him about his reaction and he said he was getting the information from the company and from others in the U.S. government, as well as what the exact nature of this deal.

And I think the critical point that you've been hammering on is a very critical point, the one that Senator Schumer is interested in, Ed Henry was talking about, does DP World totally walk away from operating these six major ports in the United States by giving control of these operations to a U.S. company? Will this company, though, still be part of the umbrella of DP World or does DP World just sell those operations now that they've purchased P&O, the British-run company that was operating these six ports in the United States?

And that's a good question, and I didn't know the answer to that question yet, what, if any, relationship DP World will retain with the operations of these six major U.S. ports?

PHILLIPS: Now, when you were there in Dubai and you interviewed the head of this company, was there any sense that this was a possibility, that this announcement would come out today? Or do you think the political pressure forced this sort of last-minute scramble?

BLITZER: I think they were aware of the enormous opposition that had been generated in the Congress, the American public to this deal, and they knew they had to come up with some sort of compromise, some sort of solution. And I interviewed the chairman just the other day, and I pressed him, "Would you be willing to come up with this so- called firewall, this idea of having a U.S. subsidiary go ahead and control the operation and DP World would have no operational control of it?" And he didn't say yes, he didn't say no. He just said they're anxious to speak to the United Arab Emirates, friends in the United States and work out something that's mutually acceptable.

So it' not a huge surprise that this divestiture or whatever it's being technically called is going forward. Officials in the United Arab Emirates and Dubai, they can see the handwriting on the wall, they saw the enormous opposition, and that 62-2 vote in the Senate -- in the House Appropriations Committee was basically the straw that broke the camel's back, I assume.

PHILLIPS: Did he -- when you had that exclusive interview with him, did he at any moment or at any time mention to you, Wolf, we could turn this into a partnership? There's A company, B company, that we have a good relationship in the United States that we would be happy to partner with to prove to the United States that we feel this is not a security threat?

BLITZER: Well, I spoke to the CEO earlier in the week in Dubai, and he said, look, this company already has American partners in Miami, in Philadelphia, in New Jersey, in New York, in New Orleans. P&O had American partners in this deal. And by taking over the P&O operation, the British-owned company, they were automatically getting a whole team of American partners.

And earlier, they didn't think they need to go beyond that, but clearly that was not good enough. They recognized that.

Look, the United States and the United Arab Emirates have a very close relationship. It's improved dramatically since 9/11. The U.S. maybe, Kyra, visits the ports in Dubai more than any other foreign port, more than any port outside the United States.

They are there on an almost daily basis. And there are air bases there as well that have become very important for the U.S. Air Force -- intelligence cooperation, economic cooperation, the strategic military cooperation. So all of that is very important.

They're aware of that. They don't just do it because they like the United States. They recognize this is in the UAE's own best national security interest.

They want to have this close relationship with the United States. But they're pretty disappointed that the administration was apparently not more successful in explaining the nature of this relationship that's emerged in recent years, and they're feeling -- I'm sure they are feeling let down.

PHILLIPS: And Wolf, we also talked about DP World when you were there and the fact that if you look at its structure, its command structure -- for example, the COO, an American, Ted Bilkey, a number of Americans within this leadership structure -- I think that a number of Americans were under the impression it was only a company owned, operated, led by the United Arab Emirates. But actually, there are a number of Americans involved with this company.

BLITZER: There are a number of Americans, there are official -- there are employees who work for DP World, I was told, from 70 countries. But make no mistake about it, Kyra, the chairman is a citizen of the United Arab Emirates, the CEO, the number two official, is a citizen of the United Arab Emirates. Ted Bilkey, who's the number three, the COO, is an American citizen. But this is a company that's owned by the government of Dubai, and I don't think anyone should be under any illusions about that.

PHILLIPS: All right.

We're continuing to follow this breaking news story here. A bombshell from Dubai Ports World.

As you saw right here on LIVE FROM, top Senate Republican John Warner announcing -- actually reading a press release from the company, DP World, out of Dubai, that this company, for the sake of relations with the United States, is going to pull out of this deal.

DP World not going to control and manage U.S. ports. However, the question is still out there, it could become a partner with another company, possibly a U.S. company, that would still be involved in operating these ports.

Now, this controversy drew sharp attention from the chairman of the Joint Chiefs of Staff, General Peter Pace. He testified before a Senate committee earlier today.

CNN's Barbara Starr was listening from the Pentagon.

We've been talking a lot about the political side of things, Barbara, but maybe we can get more into the nuts and bolds of national security and why this became an issue for your average American sitting at home wondering why this company has to be involved with U.S. ports.

BARBARA STARR, CNN PENTAGON CORRESPONDENT: Well, you know, Kyra, ever since the beginning, the Pentagon had really tried publicly to stay out of this whole port controversy, saying that it was a matter of homeland security and that the United Arab Emirates Dubai, that they were valuable partners in the global war on terrorism. But today, there was a clear shift, even before Senator Warner made this announcement, over the Senate Appropriations Committee.

There was a hearing about the supplemental bill, spending for the war in Iraq and Afghanistan. But it was very interesting.

What we noticed was, starting with Secretary Rumsfeld, he came out and talked about the port deal, and for the first time, very much said that he supported it, that he supported Dubai, that he saw no problem in the U.S. security relationship with that government.

General John Abizaid, the head of the U.S. Central Command, came out. He said he supported it. He said that the United Arab Emirates -- that the security relationship, that the United Arab Emirates was an essential partner to the U.S. military and the global war on terrorism. And then, General Peter Pace, the chairman of the Joint Chiefs of Staff, weighed in on his view of how essential the UAE is in the war on terror.

(BEGIN VIDEO CLIP)

GEN. PETER PACE, JOINT CHIEFS CHAIRMAN: In every way that we have needed them to help us militarily they have responded favorably. And as you look to potential problems in the future in that region, the United Arab Emirates' location and capacity will be critical to our ability to succeed.

(END VIDEO CLIP)

STARR: When all three of those men, Kyra, seek to make a public statement, everybody listens, because they don't do it lightly. From the U.S. military point of view, regardless of the Dubai port deal, the feeling is that the United Arab Emirates is essential.

As Wolf said, the U.S. Navy regularly calls it their ports. It is the only place outside of the -- in the Middle East that U.S. aircraft carriers can dock pier side. The UAE offers support, refueling, logistics and assistance to the United States Air Force, and there is indeed a very close relationship on intelligence reconnaissance and surveillance.

So the way those three statements were read today is, those were statements from the national security apparatus of the U.S. government, making a statement of support for the government of the UAE and for its cooperation in the war on terror.

PHILLIPS: And Barbara, just another quick note. Maybe we should make this point clear, that whether it is a company from the United Arab Emirates or a company here in the United States that's operating these ports, security is still under homeland security. And that's the Coast Guard, that's Customs.

No matter where that company is from that's operating those ports, it's U.S. security that is in charge of keeping that cargo in those ports safe.

STARR: But let me add one thing in, Kyra. A point that the United States military is making is that all those Navy Air Force assets that operate over in the Middle East, when they dock at the UAE, when they unload there, that they do believe that, although they their own security in those ports, they believe that the United Arab Emirates helps keep U.S. military assets, U.S. military personnel safe.

They make the point that they rely on the UAE on the other end, out there in the United Arab Emirates, and that they don't believe in the U.S. military, that poses any security risk to them when they rely on UAE ports in that country.

PHILLIPS: All right. Barbara Starr, live from the Pentagon.

Thanks so much.

We're hitting the political angle, the security angle. Now we want to hit the economic angle.

Susan Lisovicz joining us live from the New York Stock Exchange.

(STOCK MARKET REPORT)

PHILLIPS: Let's get back to Andrea Koppel there in our Washington bureau.

Andrea, it was your sources that told you within the past 30 minutes that this announcement was going to come from John Warner on the floor. Any other information from the company since we have last spoken?

ANDREA KOPPEL, CNN STATE DEPT. CORRESPONDENT: Well, Kyra, I now have in my hand the statement that John Warner read on the floor which was in the name of Edward Bilkey, the chief operating officer of DP World. We heard Senator Warner read it. The operative phrase in this statement has to do with DP World saying it will transfer fully the operations of P&O Ports North America to a United States entity.

The big question is, does that mean DP World is going to sell this basically $680 billion worth of six U.S. ports, their oversight of these ports, whether or not they're going to have any share whatsoever? They say they don't want to lose any money in this -- in this operation, so they want to have enough time to work everything out.

Kyra, this has been for DP World, according to the sources that I've been speaking to close to the company over the last month or so, this has really been kind of like a work speed (ph) introduction to the way American politics work. And they were completely taken by surprise by the ferocity and the passion that American senators and congressmen were opposing this deal. They were absolutely stunned.

And I can tell you that as of this morning, there was still whispers of a possible press conference to announce additional measure the Dubai Ports World would have agreed to take. And we know from Dana Bash's reporting that the Senate and House Republican leadership met with President Bush this morning and then everything unraveled and this thing went into overdrive.

So, between 9:00 this morning and about 1:15 this afternoon, we saw a 180 shift by the management of Dubai Ports World, by the owners, the United Arab Emirates, their decision to back away from what they've been saying all along, and that was there was going to be a 45-day additional investigation into the company, Kyra. An investigation that they felt they had gone above and beyond to agree to.

Just remember, as of a couple of weeks ago, really as of January, they had gotten the green light from the U.S. government to move forward with this operation. And so they were under the impression that if the Congress blocked this, they were going to end up fighting this, litigating this in U.S. courts.

Clearly now they've gotten signals from the White House, from President Bush that his threat to veto this deal, what he had been saying for the last several weeks, that he would, for the first time in his presidency, veto a measure that the Congress put before him to block a deal, that he didn't want to -- he didn't have the political capital to spend on this. He was being opposed by the senior Republicans in both the House and the Senate -- Kyra.

PHILLIPS: So Andrea, bottom line, the fact that Republicans and Democrats threatened to block this deal, does it come down to no one wants to take any type of risk since 9/11 when it comes to issues concerning national security? Because when this started to unravel and unfold, all the talk about, is cargo being checked, how could insurgents or any type of terrorists infiltrate cargo coming from overseas into the U.S., do you think bottom line that that is what got both sides somewhat together on this issue?

KOPPEL: I think absolutely. Up until the last several weeks, national security was something that President Bush was leading the charge on, and the Republican Party were riding the coattails. Democrats hadn't been the go-to party on that -- on that issue, which, as you know, was a major issue in the last election, in the presidential election.

We are now just months away from midterm elections in the Congress, and you don't have to be a political insider to see that there is a very important reason that Democrats and Republicans would want to be trumpeting this issue. And I think that it took a lot of folks by surprise that this thing had managed to make it through the CFIUS process through the U.S. Treasury and all those other, Homeland Security, DOD, State Department investigations. But the fact of matter is, this is oftentimes all about politics.

National security is something that is important to the American people. When it comes to politicians, they're thinking about reelection.

So I think that for Dubai Ports World, it was a hard lesson that you need to -- you need to keep your ear to the ground on politics and perhaps respond a little more quickly to the concerns that were being express up on Capitol Hill -- Kyra.

PHILLIPS: Andrea Koppel, live from our Washington bureau.

Thanks, Andrea.

We expect to hear from the president this hour on another hotly- debated issue, the Patriot Act. We're going to bring it to you live.

The news keeps coming. More LIVE FROM after this.

(COMMERCIAL BREAK)

PHILLIPS: President Bush has been waiting to do it for months, and in just a few minutes he'll get his wish. This week, after torturous debates, two temporary extensions, and a white-knuckle vote in the House, Congress finally renewed the Patriot Act, with a few concessions in the name of civil liberties. Today's signing comes just hours before the second extension would have run out.

CNN's Kathleen Koch is at the White House with a preview.

What are some of the changes in this new Patriot Act?

KATHLEEN KOCH, CNN CORRESPONDENT: Well, obviously, Kyra, they did have to make some changes because, you know, part of the ongoing debate over this measure, was -- was it putting Americans' privacy rights at risk in the name of fighting terrorism? So a couple of the quick changes.

Basically, they give people who are the subject of a terrorist investigation more rights. People, for instance, who are subpoenaed to provide information in a terrorist investigation now have the right to challenge a previous requirement that they not tell anyone whatsoever about the subpoena or the investigation.

Another thing that's changed, people who now receive national security letters from investigators demanding records as part of a terrorist investigation, now they no longer have to give the FBI the names of lawyers who they consult to give them advice, if, again, they're asked to turn over the information.

So those are some of the items that changed.

PHILLIPS: Kathleen Koch, live from the White House.

Thanks so much.

Severe weather alerts in Arkansas and Mississippi. We're going to check in with CNN meteorologist Reynolds Wolf -- Reynolds.

(WEATHER REPORT)

PHILLIPS: Thanks so much.

Medicare recipients facing a May deadline to sign up for a plan. If you're still trying to decide on a plan or you have questions about the plan that you're on, we're going to have some answers for you.

Dr. Mark McClellan, head of Medicare and Medicaid coverage, joins us live next.

(COMMERCIAL BREAK)

PHILLIPS: A deadline approaches for seniors. May 15th is the last day older Americans can sign up for the new Medicare Prescription Drug Program before risking steadily increasing premiums. The program will cut seniors' out of pocket expenses, but critics say it's already been a bureaucratic nightmare.

Joining me from New York is the administrator of Medicare and Medicaid, Dr. Mark McClellan. Good to see you, Dr. McClellan. DR. MARK MCCLELLAN, MEDICARE ADMINISTRATOR: Kyra, good to be with you.

PHILLIPS: As you know, we have had a number of stories and personal testimonies on this program about how confusing this system is and that it's been hard to communicate with pharmacists and get the money and get the drugs. Let me just quickly ask you, because I want to get to e-mails, do you think it's getting any better?

MCCLELLAN: Oh, yes. Absolutely. I've been out around the country talking to beneficiaries and talking to pharmacists. I spoke to a group of pharmacists this morning. They're saying it's much, much better.

The people who were having trouble in the beginning, especially some people with Medicare and Medicaid, are now finding their prescriptions going through and we are seeing millions of prescription getting filled every day. Seniors are saving money and getting security and it's about time that this coverage was present in Medicare.

PHILLIPS: All right. Let's get straight to the questions because we pretty much got flooded with e-mails.

Bettye wants to know from you, "My doctor changes my blood pressure medicine about every six months. How do I decide on a company when I'm not sure what medicine I'll be taking a year from now?"

MCCLELLAN: Betty, every Medicare drug plan has to cover all medically necessary treatments. All the drug plans cover a range of medicines for high blood pressure. And if you have any questions about medicine that may not be covered by a plan, there is a process for getting that medication covered too. You'll see your blood pressure medicine costs get cut in half with the new drug coverage.

Billy from Bakersfield says, "I suffer from Multiple Sclerosis, and I take Betaseron, which costs $1,000 a month. Every Medicare Part D plan that covers this drug wants $300 a month co-payment. My only source of income is Social Security, but I receive too much to qualify as low income. So I have no other choice but to stop taking this medication."

MCCLELLAN: Well, if he has coverage now, that's great. If he doesn't have coverage, then paying a few hundred dollars a month is a huge help compared to paying more than $1,000 a month, which is what these drugs have cost in the past.

And if he calls 1-800-MEDICARE, we can help find plans that have good coverage for this program. We can also hook him up with additional assistance programs if he's got limited means to make sure he gets the drugs that he needs.

This is a new program that is going to provide new help for people like this who have very high drug costs, but it's also going to provide help for everyone with Medicare who might not need such expensive drugs right now.

PHILLIPS: Well, since you're bringing up additional assistance programs, I want to ask you about PPA, the Partnership for Prescription Assistance. Montel Williams the spokesperson for this. Can you here me OK? Do you still hear me all right?

MCCLELLAN: Hello, are you guys still there?

PHILLIPS: OK, good, yes. Do you hear me? Do you still hear me, Mark? OK. He lost his IFB. Let's go ahead and get it -- we're going to get his IFB back into his ear. For all you viewers that don't know what that is, it's how we communicate. It's a little thing that kind of sometimes comes out of our ear. While he fixes that, we're going to take a quick break. We'll be right back.

(COMMERCIAL BREAK)

PHILLIPS: Happening live this hour, President Bush signing the U.S. Patriot Reauthorization Act. We're going to bring that to you that live.

In the meantime, we're going to continue our discussion with Medicare with Dr. Mark McClellan, as you know, the head of Medicare and Medicaid. Sorry about that. Sorry we lost contact for a minute there. I apologize, Mark.

MCCLELLAN: Well, it's good to be back.

PHILLIPS: OK. You had mentioned when we were talking about Billy from Bakersfield, concerned about not being able to afford his medication, you were talking about assistance programs to help with that. I wanted to ask you about the Partnership for Prescription Assistance, PPA. This is what Montel Williams, the talk show host, is traveling around the country talking about, advertising. I want to play a part of an interview that I had with him and get your response.

(BEGIN VIDEO CLIP)

MONTEL WILLIAMS, TALK SHOW HOST: Let me tell you what else is so good about it. If you qualify for Medicaid and Medicare, you can call 1-888-4 PPA-NOW and they'll show you ho to navigate through the Medicaid bureaucracy because they just are trying their best to get medication into the hands of people who need it.

Look, in one way, you've got to say, "OK, this is great, pharmaceutical industry stepped up to the plate and they decided to do something super-philanthropic." Yes, they have, $5 billion of medication has been given out since April. This is the...

PHILLIPS: It sounds like you should be running Health and Human Services.

WILLIAMS: Well, you know what? Give me a chance to do it and I can take care of -- what we ought to do is bring in the people who recognize how to do it right.

(END VIDEO CLIP)

PHILLIPS: Would you vote for him, Mark?

MCCLELLAN: Secretary Williams, I don't know, but right now we have exactly the same goal that he does, which is getting people the medicines that they need.

This program is already saving people billions of dollars in their drug costs. And in addition to that number that Montel gave out, people can call 1-800-Medicare any time if they have Medicare to find out about what the new drug coverage means for them and how it can work with some other programs as well.

PHILLIPS: Well let me ask you about PPA. He says these drug companies are actually helping out an providing free drugs for people that call and say, "Look, I'm having this issue or that issue or I can't afford it." Do you think that's too good to be true? Do you think this is a valiant effort on behalf of these pharmaceutical companies? What's your take?

MCCLELLAN: There are some important manufacturer programs out there that are providing drugs at low or no cost to people who need it. We're working to make sure that those programs can add to the Medicare drug benefit and we set up a way for the drug manufacturers to do just that.

So we're hoping that they will take advantage of that opportunity. Right now, though what people need to know if they've got Medicare or care about somebody with Medicare is that the drug coverage can provide real help, typically 50 percent or more on all of their drug needs and these manufacturer programs are another place to go for extra help if you've got limited means and are still struggling a bit.

But the drug coverage can be very comprehensive, especially for people who are living just on a fixed income of $1,000 a month. Medicare will pay 95 percent or more of your drug costs in that case so it's very important to call 1-800-Medicare.

PHILLIPS: All right, Jean from Erie, Pennsylvania. She says "I'm an RN, I know so many people that need help in possible fraud committed against them by insurance companies or non-profits who signed them up for Medicare Part D. Is there any chance that the privatized Medicare Part D programs will be replaced by a single Medicare drug card that seniors can take to any drug store that they want?"

MCCLELLAN: Well, there are choices now, Kyra. I get this question a lot when I go around the country. The advantage of choices is that people are getting coverage at a much lower cost and with much better benefits than if the government had designed this plan.

There was actually a standard government plan design in the Medicare benefit. And over 90 percent of people have chosen something else. They've chosen coverage with extra benefits like no deductible and filling in that so-called donut hole and they're getting that coverage for a lot less money than people had expected if the government had run the program.

So there's some real advantages of having choice and there's some real help available to assist people in making that choice if you call 1-800-Medicare.

PHILLIPS: And from Maine, "I allowed Medicare to select a prescription plan for me. Under my old plan, my co-payment was $12. Under the new plan, it is $57. How can I afford one drug with this co-pay and still buy the remaining 15 that I take?"

MCCLELLAN: Kyra, for everyone with Medicare, they make the choice about how to -- which plan to sign up for. People who have Medicare and Medicaid are automatically enrolled in a drug plan, this may be someone in that circumstance.

They can switch plans at any time to get in one with lower drug costs. So if you think you may be able to do better in getting even lower costs, call us at 1-800-Medicare, and we'll help you do that. We've already helped literally millions of people save billions of dollars on their drug costs.

PHILLIPS: I think we haven't said the number enough. You want to say it one more time?

MCCLELLAN: 1-800-Medicare, also Medicare.gov.

PHILLIPS: OK, well we'll get it at least 12 times before we wrap this up. All right, Tracy wants to know, well Tracy says, "I'm 40, disability, and," I think she meant disabled, maybe, "And have just been put on Medicare and Medicaid. I'm afraid to call a caseworker because I'm afraid they might cut my cut my benefits. I'm also frightened to consult with people about Medicare. I feel if I just leave it alone, I'll be assigned to the best plan for me."

MCCLELLAN: She will get a plan that will cover the drugs that she needs. She should absolutely not be afraid about contacting us. You can do that over the phone and I won't mention the number again. But if she does call that number, she can get help over the phone, we will only ask about her prescription drug needs and the pharmacy that she likes to use and we'll make sure she's hooked up with a plan that's a really good fit and can save her the most money.

PHILLIPS: Carole from Alexandria, "What recourse does someone have when the insurance company, without permission or input, enrolls you in Medicare Part D? Can I opt out? If not, can I subscribe to a plan that works better for me?"

MCCLELLAN: This is a voluntary benefit, you don't sign up unless you want to sign up. So the main thing that people who have not yet enrolled need to do is think about this between now and May 15th. There's still plenty of time but if you contact us now or go to a counselor, there are counselors all over the country with enrollment events taking place, literally thousands every week right now.

Lots of places to go for help and they can help you enroll. You don't get enrolled automatically in this program. It's voluntary benefit for people with Medicare.

PHILLIPS: Dr. Mark McClellan, administrator of Medicare and Medicaid. You opened it up for me to bring you back. So be expecting another phone call because we have a flurry of e-mails we still want to take to you. Thanks for your time today.

MCCLELLAN: Thank you, great talking with you.

PHILLIPS: My pleasure. Getting word now of a funnel cloud spotted in Indiana. We want to get straight to our Reynolds Wolf who is following this for us, severe weather. What's the deal, Reynolds.

(WEATHER REPORT)

PHILLIPS: You know, what Reynolds, forgive me, I'm sorry, I'm getting word that we're -- we want to get to the president now, the president is on his way out. We'll come back to you, Reynolds. As you know, the president is expected to sign the extension of the Patriot Act, 16 major provisions of the old law expire tomorrow. He's now going to get ready to sign that. If it's passed, well, we'll follow what he says now, let's listen in.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: Glad you're here in the people's house. I'm going to sign -- in a few moments I'll be signing the USA Patriot Improvement and Reauthorization Act.

This is a really important piece of legislation. It is a piece of legislation that's vital to win the war on terror and to protect the American people.

The law allows our intelligence and law enforcement officials to continue to share information. It allows them to continue to use tools against terrorists that they use against drug dealers and other criminals. It will improve our nation's security while we safeguard the civil liberties of our people.

The legislation strengthens the Justice Department so it can better detect and disrupt terrorist threats. And the bill gives law enforcement new tools to combat threats to our citizens, from international terrorists to local drug dealers.

It is an important piece of legislation and I thank those here who helped get it passed.

I particularly want to thank the attorney general, Al Gonzales. It's good to see the former attorney general is here as well.

I appreciate Secretary Mike Chertoff, Secretary John Snow, Ambassador Negroponte, Bob Mueller, thank you all for coming.

John Walters, I appreciate you being here.

I particularly want to thank the members of the Congress who are up here, starting with the speaker of the house, Denny Hastert.

Mr. Speaker, thanks for your leadership. This is an important piece of legislation.

I do want to pay special tribute to Senator Arlen Specter and Congressman Jim Sensenbrenner. These are the chairmen of the Judiciary Committees that got this legislation to this desk. Thank you all for your hard work. I appreciate your being here.

I want to thank Pat Roberts who is with us, John Boehner, the majority leader, Roy Blunt, the majority whip. And I want to thank all the other members of the Congress who joined us, particularly Peter King, who's the chairman of the House Homeland Security Committee.

I want to thank all the state and local officials who are here.

Chief Ramsey, it's good to see you. Appreciate your -- always be good to the local police chief.

(LAUGHTER)

BUSH: America remains a nation at war. The war reached our shores on September the 11th, 2001. On that morning, we saw clearly the violence and hatred of a new enemy. We saw the terrorists' destructive vision for us when they killed nearly 3,000 men, women and children.

In the face of this ruthless threat, our nation has made a clear choice. We will confront this mortal danger, we will stay on the offensive and we're not going to wait to be attacked again.

Since September the 11th, 2001, we have taken the fight to the enemy. We're hunted terrorists in the mountains of Afghanistan, the cities of Iraq, the islands of southeast Asia and everywhere else they plot, plan and train.

Our men and women in uniform have brought down two regimes that supported terrorism. They liberated 50 million people. We've gained new allies in the war on terror.

As we wage the war on terror overseas, we're also going after the terrorists here at home.

And one of the most important tools we have used to protect the American people is the Patriot Act.

The Patriot Act closed dangerous gaps in America's law enforcement and intelligence capabilities, gaps the terrorists exploited when they attacked us on September 11th.

The Patriot Act was passed with overwhelming bipartisan support. It strengthened our national security in two important ways.

First, it authorized law enforcement and intelligence officers to share vital information.

Before the Patriot Act, criminal investigators were often separated from intelligence officers by a legal and bureaucratic wall. The Patriot Act tore down the wall. And as a result, law enforcement and intelligence officers are sharing information, working together and bringing terrorists to justice.

Secondly, the Patriot Act has allowed agents to pursue terrorists with the same tools they use against other criminals.

Before the Patriot Act, it was easier to track the phone contacts of a drug dealer than the phone contacts of an enemy operative.

Before the Patriot Act, it was easier to get the credit card receipts of a tax cheater than trace the financial support of an al Qaeda fundraiser.

The Patriot Act corrected these double standards and the United States is safer as a result.

Over the past four years, America's law enforcement and intelligence personnel have proved that the Patriot Act works.

Federal, state and local law enforcement have used the Patriot Act to break up terror cells in Ohio, New York, Oregon and Virginia. We've prosecuted terrorist operatives and supporters in California and Texas, New Jersey, Illinois, Washington and North Carolina.

The Patriot Act has accomplished exactly what it was designed to do. It has helped us detect terror cells, disrupt terrorist plots and save American live. The bill I sign today extends these vital provisions.

It also gives our nation new protections and added defenses.

This legislation creates a new position of assistant attorney general for national security. This will allow the Justice Department to bring together its national security, counterterrorism, counterintelligence and foreign intelligence surveillance operations under a single authority.

This reorganization fulfills one of the critical recommendations of the WMD commission. It will help our brave men and women in law enforcement connect the dots before the terrorists strike.

This bill also will help protect Americans from the growing threat of methamphetamine.

Meth is easy to make, it is highly addictive, it is ruining too many lives across our country.

The bill introduces common-sense safeguards that would make many of the ingredients used in manufacturing meth harder to obtain in bulk and easier for law enforcement to track.

For example, the bill places limits on large-scale purchases of over-the-counter drugs that are used to manufacture meth. It requires stores to keep these ingredients behind the counter or in locked display cases. The bill also increases penalties for snuggling and selling of meth. Our nation is committed to protecting our citizens and our young people from the scourge of methamphetamine.

The Patriot Act has served America well, yet we cannot let the fact that America has not been attacked since September the 11th lull us into the illusion that the terrorist threat has disappeared. We still face dangerous enemies. The terrorists haven't lost the will or the ability to kill innocent folks.

Our military law enforcement, homeland security and intelligence professionals are working day and night to protect us from this threat. We're safer for their efforts. We will continue to give them the tools to get the job done.

And now, it's my honor to sign the USA Patriot Improvement and Reauthorization Act of 2005.

(APPLAUSE)

PHILLIPS: The president of the United States putting pen to paper, while he says staying on the defensive, bringing up the global war on terror. He is touting what he has just done and that is signing the extension of the Patriot Act.

As you know, it's been very controversial trying to balance the right to privacy with the need to bring down potential threats and bring down terrorist attacks here in the United States. The president is surrounded by all his chiefs from Homeland Security to Intelligence to all political levels.

We'll continue to follow more on the Patriot Act, of course, later in the show. We're going to take a quick break. More LIVE FROM right after this.

(COMMERCIAL BREAK)

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