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President Bush Nominates Michael Leavitt as Secretary of Health and Human Services

Aired December 13, 2004 - 10:30   ET

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

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


RICK SANCHEZ, CNN ANCHOR: Thirty-two minutes into the hour, and certainly we're all into this newscast. I'm Rick Sanchez.
DARYN KAGAN, CNN ANCHOR: And I'm Daryn Kagan. Let's take a look at what's happening now in the news.

Restocking the cabinet, CNN confirms President Bush will name Mike Leavitt as his nominee for secretary of health and human services. We're expecting a live announcement any moment. Of course we'll bring that to you live when it happens. CNN has also learned of another potential job opening in a top government post. We're told that NASA administrator Sean O'Keefe is expected to announce his resignation today. Sources at NASA say O'Keefe will accept an offer from Louisiana State University as that school's chancellor.

In California, a life-or-death decision is being made. The jury in the Scott Peterson case will continue their deliberations over whether Peterson should be sentenced to death or get life in prison. Jurors had the weekend off. It took the same jury just over seven hours last month to convict Peterson for killing his pregnant wife Laci and their unborn son.

And attention shoppers, 'tis the season to be spending. The Commerce Department reports shoppers have boosted sales of the nation's retailers last month. Personal spending on items like electronics and appliances up one tenth of one percent. That is higher than some experts predicted.

It was a year ago today American troops pulled Saddam Hussein from that small bunker that he was hiding in. American leaders and Iraqi citizens had hoped the capture would help calm the violence all across Iraq.

But as CNN's Chris Lawrence explains, there's been no letup by very determined militants.

(BEGIN VIDEOTAPE)

CHRIS LAWRENCE, CNN CORRESPONDENT (voice-over): When Saddam was dragged out of a hole in the ground, many expected the insurgency would soon be buried. The skies over Baghdad Monday proved it's anything but. A suicide bomber attacked a checkpoint near Baghdad's green zone, detonating a car bomb as people were going to work. And in two separate incidents Sunday, seven United States Marines were killed in action west of the capital while working to secure that area. It's all a far cry from where U.S. officials expected to be this time last year.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: A dark and painful era is over. A hopeful day has arrived.

LAWRENCE: President Bush hailed Saddam's capture as a breakthrough. Military officials said it dealt a huge blow to insurgents, depriving them of a figurehead and a financial backer.

BUSH: All Iraqis can now come together and reject violence and build a new Iraq.

LAWRENCE: But one year on, Iraqis are more divided than ever. Insurgents have become stronger and smarter, and a rebuilt Iraq is still years away. It's left many people here discouraged.

UNIDENTIFIED MALE (through translator): We expected a lot of changes, especially when they captured Saddam, but nothing has happened.

LAWRENCE: A year has made all the difference, but not in the ways Iraqis and Americans would have liked.

(on camera): Saddam Hussein remains in a Baghdad prison, isolated from other inmates. Nothing is expected to happen with his trial until at least after next month's elections, and even then, it may not happen until this time next year.

Chris Lawrence, CNN, Baghdad.

(END VIDEOTAPE)

SANCHEZ: We have certainly heard a lot interest troops in Iraq who say they're not getting adequate equipment to fight insurgents. Well, six Ohio based Reservists who took matters into their own hands are being court-martialed now for theft. Charges stem from the Reservists taking vehicles and supplies that have been abandoned in Kuwait. Members say they needed the equipment to deliver fuel to some of the forces in Iraq.

KAGAN: Let's take a look at other news making news overseas in this morning's world rap: 70,000 fans at a soccer stadium in Madrid, Spain were safely evacuated after a bomb threat last night. The threat was phoned to a Basque newspaper. The Basque separatist group ETA has issued similar warnings in recent days before a series of explosions in Spanish cities. In this case, though, no bomb was found.

To the Middle East, Israeli helicopters fired missiles at two suspected terrorist workshops in Gaza early today. Palestinian sources also say missiles hit the home of a Hamas activist in southern Gaza. This after Palestinian in the city blasted open a tunnel under an Israeli defense post Sunday, killing five Israeli soldiers.

SANCHEZ: Let's bring Suzanne Malveaux back in. We understand that the president could be coming out at any moment now to name the man who he hopes will be confirmed to replace Tommy Thompson at the Department of health and human services -- Suzanne.

SUZANNE MALVEAUX, CNN CORRESPONDENT: Well, Rick, that's right. It's just moments away from that announcement. We know who he is going to announce. It is Michael Leavitt. He is the commissioner of EPA. He's also the former governor of Utah. It's somewhat of a surprise to the press corps. We were told by a number of sources in the last couple of weeks the leading -- the front-runner of this position would be Mark McClellan (ph). He is the former commissioner of FDA, and also really the chief Medicare person for the administration.

One thing to note, however, is that he is very much aligned with the Medicare and prescription drug policy. That, of course, being a very controversial policy. Some of his critics believing that perhaps he was a bit too cozy with the drug industry. That is what his critics are saying. He has always argued, however, that he wanted to make sure that drugs were safe. He was against importing those drugs from Canada. We are now seeing the president in the Roosevelt Room.

Let's hear what he says.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: Thank you. Good morning.

I am pleased to announce the nomination of Michael O. Leavitt as the secretary of health and human services.

Last year, I welcomed Mike to my Cabinet as administrator of the Environmental Protection Agency. In that office, he has enforced high standards and a spirit of cooperation, and with good common sense. He has upheld this administration's commitment to sustained improvements in the quality of the natural environment. He's managed the EPA with skill and with a focus on results.

I've come to know Mike as a fine executive, as a man of great compassion. He's an ideal choice to lead one of the largest departments of the United States government.

The Department of Health and Human Services touches the life of every person in this country. From the safety of our food and medicine, to the Medicare program, to preparing for any kind of health emergency, HHS has comprehensive responsibilities for the health of Americans.

BUSH: To meet those responsibilities, the department needs many thousands of skilled professionals, and a leader who is able to act on many fronts all at once.

For the last four years, HHS has served the American people extremely well under the energetic leadership of Tommy Thompson.

Early in his tenure, our nation went on a wartime footing and had to prepare for emergencies of a kind never seen before. Secretary Thompson led the effort to prepare the medical infrastructure for any terrorist challenge. At the same time, he has presided over dramatic increases in medical research, adding to the promise of hopeful new cures. He's helped set in motion major improvements in Medicare, which will benefit seniors all across America.

BUSH: He's worked closely with state and local officials to ensure that public health programs function as effectively as possible.

And throughout his career, as governor and as secretary of health and human services, Tommy Thompson has led efforts to reform welfare laws and to help more people transition from welfare to work.

Tommy Thompson is a good friend who has given every day of the last 38 years to public service. As he and Sue Ann move on to new challenges, Tommy has my deep gratitude for a job well done.

My new nominee for HHS secretary, like Tommy Thompson, served many years as a governor. The people of Utah elected Mike Leavitt to three terms, and during his administration Utah was named one of the best-managed state governments in the country.

Governor Leavitt was a leader in welfare reform, resource management and environmental stewardship. He improved child welfare services in the state and made strides toward expanding access to health care for children. He made government services more accessible through the Internet. And he always insisted that the government remain accountable to the people it serves.

When confirmed by the Senate, Mike Leavitt will be charged with a broad agenda for the health and safety of the American people.

BUSH: In this new term, we will implement the first-ever prescription drug benefit for seniors under Medicare. We will expand federal cooperation with faith-based groups that provide essential services, such as counseling and treatment for addictions. We will continue pursuing the great promise of medical research, always ensuring that the work is carried out with vigor and moral integrity.

We will not relent in our efforts to protect the American people from disease, and the use of disease as a weapon against us.

Mike Leavitt is the right leader to lead HHS in meeting all these vital commitments.

I thank him for accepting this new responsibility.

I also thank his wife Jackie and their son Westin for being with us today.

I urge the Senate to confirm Governor Leavitt's nomination as soon as possible.

Congratulations.

MICHAEL O. LEAVITT, NOMINEE, SECRETARY OF HEALTH AND HUMAN SERVICES: Mr. President, thank you very much.

I want to express my appreciation for the confidence that you've shown me.

I had a chance a couple of days ago to begin sorting through some of the papers that I have accumulated over 11 years as governor and some time as administrator of the Environmental Protection Agency. I found one letter that expresses what I'm feeling.

LEAVITT: It actually was a letter from a young father, a man I had met several years before. The letter was actually a report on his son. He had recently pass the critical five-year point on a lifesaving procedure that he had that was made possible by Medicaid. It was a letter of gratitude.

As I read it, I felt a sense of gratitude. I felt a sense of gratitude for living in a country where the cares and the values of people matter, and where we care for their health.

And it's gratitude, Mr. President, that I'm feeling today for the privilege of being able to serve in your Cabinet and, should I be confirmed in the Senate, to have this new opportunity to contribute.

I feel a real sense of understandable regret, after having to leave the Environmental Protection Agency. It's an agency that's filled with dedicated people whom I've come to have great affection for and have a sense of shared importance and mission in protecting public health.

The quality of health and the health condition of people in this nation is a commitment that is shared among both agencies, as is the connection between science and health.

As the president suggested, the Department of Health and Human Services plays a vital part of the lives of every American.

I also want to express my admiration for Tommy Thompson. His mark will be indelibly impressed on the history of human services programs in this nation.

As governors, we worked together in helping Congress rewrite welfare reform some years ago, Medicaid improvements and child health insurance programs.

I was delighted when he was appointed as secretary. And, in fact, Tommy Thompson's work has benefited my own state. Thousands of people in my home states have been the beneficiary of his willingness to innovate. Working families, thousands of them, now have health insurance today because of a first-of-its-kind waiver that he provided.

I admire Tommy Thompson greatly, and the prospect of following in his service is an enormous challenge.

But I look forward, as the president said, to the implementation of the Medicare prescription drug program in 2006, medical liability reform and finding ways to reduce the cost of health care.

I am persuaded that we can use technology and innovation to meet our most noble aspirations and not compromise our other values that we hold so dear.

So, Mr. President, I'm looking forward to implementing your vision, and I want to again thank you and the American people and to give you my commitment that I will serve and give this assignment all I have.

Thank you.

BUSH: Good job.

KAGAN: Listening in at the White House, as President Bush nominates Mike Leavitt, the current administrator of the EPA, to take on the Department of health and human services, replacing Tommy Thompson. He's getting ready there to pose with his wife and his son.

Our Suzanne Malveaux standing by at the White House.

Suzanne, as someone who's a -- been leading up the EPA, you know someone -- somebody who's been vetted, and chances are the administration won't walk into the embarrassing mess as they did with Bernie Kerik, to nominate him as head of Homeland Defense.

MALVEAUX: It's not likely they're going to repeat that same mistake, of course. They've gotten a lot of criticism over that, and the debate continues over just whether or not it was Kerik's fault for not giving more detailed information, or whether or not the White House did not vet that nominee well enough to do so. The White House insisting that they looked at all of those details that were necessary, and looked at Kerik and said that perhaps he should have given those details a lot sooner. One thing that Mike Leavitt, of course, is going to have to be dealing with. There's going to be huge challenges in dealing with this particular department. One of the warnings that Secretary Thompson said his parting words were that America's food supply was vulnerable to terrorists, but he was surprised that they hadn't attacked the food supply before. That is the first and foremost something that Leavitt's going to have to deal with.

Secondly, of course, this is a department that is going to face huge budget cuts. And also, of course, it has been bruised by this political battle over prescription drugs through Medicare. This is a program that critics say is largely ineffective, that it's unpopular with seniors. This is something that he is also going to have to deal with in trying to convince seniors that this is something that is workable and affordable -- Daryn.

KAGAN: Suzanne Malveaux at the White House.

Suzanne, thank you.

SANCHEZ: Sure they're going to have a whole lot more news in just a little bit. KAGAN: That we are. Right now, a quick break. We're back after this.

(COMMERCIAL BREAK)

(STOCK MARKET REPORT)

(COMMERCIAL BREAK)

KAGAN: The story and the song have fascinated millions of listeners ever since. Now it is the 25th anniversary. "Grandma's" songwriter is set to release a new album. Watch out. Dr. Elmo joins me live from San Francisco to talk about the popularity of that enduring song, "Grandma Got Run Over by a Reindeer."

Well, good morning.

DR. ELMO, "GRANDMA GOT RUN OVER": Good morning, Daryn.

KAGAN: I believe doctor. Well Dr. Elmo, you're a vet, right?

ELMO: Yes, I am.

KAGAN: Well, congratulations. Happy anniversary.

ELMO: Thank you very much.

KAGAN: You have such a big smile on your face for someone who is real really so politically incorrect. What is the original motivation for the song?

ELMO: It written by a friend of mine named Randy Brooks about his grandmother.

KAGAN: Oh, nice.

ELMO: She used to party a lot at Christmas. And when she was hungover after Christmas, he thought it would be nicer to say she got run over by a reindeer than just simply she was hungover.

KAGAN: Than grandma's drunk or hung over. Some people have been, we have to say, have been offended by the song, calling it ageist, sexist and a violent statement against sold older people of America. What do you say about that, Dr. Elmo?

ELMO: Well, I don't think so. I think it just proves there's a Santa Claus.

KAGAN: OK, we'll leave it at that. As I mentioned, you're a veterinarian by training. Do you think are you inspired by the reindeer, as well?

ELMO: I'm very inspired by reindeer, especially now.

KAGAN: And you're working on a new CD. What could be the politically incorrect topic of this one? ELMO: Well I have a new song about one of my favorite people, and I could just give you a couple of lines from it.

KAGAN: Well, please do.

ELMO: It goes like this: My piggy pudding souffle is solid as a rock, my carrot custard clarboyle (ph) lies curdled in his crock, my house of gingerbread is falling like your stock, Christmas isn't Christmas without Martha.

KAGAN: Oh. Because we all know where Martha Stewart will be spending this Christmas.

ELMO: Yes. And I hope that she's out soon because I don't know what we're going to do without here at Christmas.

KAGAN: I think early spring is when she's getting out. And she's got a new TV deal. She's going to get the best present. She's coming back bigger than ever. You could write a new song perhaps for her now television show that she's going to do.

ELMO: I hope she'll use this one.

KAGAN: Absolutely. You will sign away the exclusive rights no doubt.

ELMO: Yes.

KAGAN: Any other politically incorrect plans for this holiday season, Dr. Elmo?

ELMO: Well, I'm getting ready to -- let's see, I do have one called "Grandma's Killer Fruitcake." I don't like to make fun of fruit cake but it has a line to go -- It was harder than the head of Uncle Bucky, heavy as a sermon of preacher Lucky. One's enough to give the whole state of Kentucky a great big bellyache. It was denser than a drove of barnyard turkeys, tougher than a truckload of all beef jerky, drier than a drought in Albuquerque, grandma's killer fruitcake.

KAGAN: Excellent. You have put us in the holiday spirit. Dr. Elmo, thank you for that. And you have great, great holidays, and happy anniversary for the "Grandma Getting Run Over by a Reindeer Song."

ELMO: One of my anniversary presents is the grandma song after all these years is the No. 1 download on cell phone ringers.

KAGAN: Well, congratulations on that. We'll have to have you stop by at Easter and see what you come up for that.

Dr. Elmo, thanks for stopping by.

KAGAN: Thanks, Daryn. Nice to be on.

Now that is a happy man. SANCHEZ: He certainly is. Maybe he can come by and talk to all the grandmas protesting out there across the street.

"Aviator" is golden. It's a new film that stars Leo, and it gets several nods from the Golden Globes. We'll be back with that and more.

(COMMERCIAL BREAK)

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Aired December 13, 2004 - 10:30   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
RICK SANCHEZ, CNN ANCHOR: Thirty-two minutes into the hour, and certainly we're all into this newscast. I'm Rick Sanchez.
DARYN KAGAN, CNN ANCHOR: And I'm Daryn Kagan. Let's take a look at what's happening now in the news.

Restocking the cabinet, CNN confirms President Bush will name Mike Leavitt as his nominee for secretary of health and human services. We're expecting a live announcement any moment. Of course we'll bring that to you live when it happens. CNN has also learned of another potential job opening in a top government post. We're told that NASA administrator Sean O'Keefe is expected to announce his resignation today. Sources at NASA say O'Keefe will accept an offer from Louisiana State University as that school's chancellor.

In California, a life-or-death decision is being made. The jury in the Scott Peterson case will continue their deliberations over whether Peterson should be sentenced to death or get life in prison. Jurors had the weekend off. It took the same jury just over seven hours last month to convict Peterson for killing his pregnant wife Laci and their unborn son.

And attention shoppers, 'tis the season to be spending. The Commerce Department reports shoppers have boosted sales of the nation's retailers last month. Personal spending on items like electronics and appliances up one tenth of one percent. That is higher than some experts predicted.

It was a year ago today American troops pulled Saddam Hussein from that small bunker that he was hiding in. American leaders and Iraqi citizens had hoped the capture would help calm the violence all across Iraq.

But as CNN's Chris Lawrence explains, there's been no letup by very determined militants.

(BEGIN VIDEOTAPE)

CHRIS LAWRENCE, CNN CORRESPONDENT (voice-over): When Saddam was dragged out of a hole in the ground, many expected the insurgency would soon be buried. The skies over Baghdad Monday proved it's anything but. A suicide bomber attacked a checkpoint near Baghdad's green zone, detonating a car bomb as people were going to work. And in two separate incidents Sunday, seven United States Marines were killed in action west of the capital while working to secure that area. It's all a far cry from where U.S. officials expected to be this time last year.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: A dark and painful era is over. A hopeful day has arrived.

LAWRENCE: President Bush hailed Saddam's capture as a breakthrough. Military officials said it dealt a huge blow to insurgents, depriving them of a figurehead and a financial backer.

BUSH: All Iraqis can now come together and reject violence and build a new Iraq.

LAWRENCE: But one year on, Iraqis are more divided than ever. Insurgents have become stronger and smarter, and a rebuilt Iraq is still years away. It's left many people here discouraged.

UNIDENTIFIED MALE (through translator): We expected a lot of changes, especially when they captured Saddam, but nothing has happened.

LAWRENCE: A year has made all the difference, but not in the ways Iraqis and Americans would have liked.

(on camera): Saddam Hussein remains in a Baghdad prison, isolated from other inmates. Nothing is expected to happen with his trial until at least after next month's elections, and even then, it may not happen until this time next year.

Chris Lawrence, CNN, Baghdad.

(END VIDEOTAPE)

SANCHEZ: We have certainly heard a lot interest troops in Iraq who say they're not getting adequate equipment to fight insurgents. Well, six Ohio based Reservists who took matters into their own hands are being court-martialed now for theft. Charges stem from the Reservists taking vehicles and supplies that have been abandoned in Kuwait. Members say they needed the equipment to deliver fuel to some of the forces in Iraq.

KAGAN: Let's take a look at other news making news overseas in this morning's world rap: 70,000 fans at a soccer stadium in Madrid, Spain were safely evacuated after a bomb threat last night. The threat was phoned to a Basque newspaper. The Basque separatist group ETA has issued similar warnings in recent days before a series of explosions in Spanish cities. In this case, though, no bomb was found.

To the Middle East, Israeli helicopters fired missiles at two suspected terrorist workshops in Gaza early today. Palestinian sources also say missiles hit the home of a Hamas activist in southern Gaza. This after Palestinian in the city blasted open a tunnel under an Israeli defense post Sunday, killing five Israeli soldiers.

SANCHEZ: Let's bring Suzanne Malveaux back in. We understand that the president could be coming out at any moment now to name the man who he hopes will be confirmed to replace Tommy Thompson at the Department of health and human services -- Suzanne.

SUZANNE MALVEAUX, CNN CORRESPONDENT: Well, Rick, that's right. It's just moments away from that announcement. We know who he is going to announce. It is Michael Leavitt. He is the commissioner of EPA. He's also the former governor of Utah. It's somewhat of a surprise to the press corps. We were told by a number of sources in the last couple of weeks the leading -- the front-runner of this position would be Mark McClellan (ph). He is the former commissioner of FDA, and also really the chief Medicare person for the administration.

One thing to note, however, is that he is very much aligned with the Medicare and prescription drug policy. That, of course, being a very controversial policy. Some of his critics believing that perhaps he was a bit too cozy with the drug industry. That is what his critics are saying. He has always argued, however, that he wanted to make sure that drugs were safe. He was against importing those drugs from Canada. We are now seeing the president in the Roosevelt Room.

Let's hear what he says.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: Thank you. Good morning.

I am pleased to announce the nomination of Michael O. Leavitt as the secretary of health and human services.

Last year, I welcomed Mike to my Cabinet as administrator of the Environmental Protection Agency. In that office, he has enforced high standards and a spirit of cooperation, and with good common sense. He has upheld this administration's commitment to sustained improvements in the quality of the natural environment. He's managed the EPA with skill and with a focus on results.

I've come to know Mike as a fine executive, as a man of great compassion. He's an ideal choice to lead one of the largest departments of the United States government.

The Department of Health and Human Services touches the life of every person in this country. From the safety of our food and medicine, to the Medicare program, to preparing for any kind of health emergency, HHS has comprehensive responsibilities for the health of Americans.

BUSH: To meet those responsibilities, the department needs many thousands of skilled professionals, and a leader who is able to act on many fronts all at once.

For the last four years, HHS has served the American people extremely well under the energetic leadership of Tommy Thompson.

Early in his tenure, our nation went on a wartime footing and had to prepare for emergencies of a kind never seen before. Secretary Thompson led the effort to prepare the medical infrastructure for any terrorist challenge. At the same time, he has presided over dramatic increases in medical research, adding to the promise of hopeful new cures. He's helped set in motion major improvements in Medicare, which will benefit seniors all across America.

BUSH: He's worked closely with state and local officials to ensure that public health programs function as effectively as possible.

And throughout his career, as governor and as secretary of health and human services, Tommy Thompson has led efforts to reform welfare laws and to help more people transition from welfare to work.

Tommy Thompson is a good friend who has given every day of the last 38 years to public service. As he and Sue Ann move on to new challenges, Tommy has my deep gratitude for a job well done.

My new nominee for HHS secretary, like Tommy Thompson, served many years as a governor. The people of Utah elected Mike Leavitt to three terms, and during his administration Utah was named one of the best-managed state governments in the country.

Governor Leavitt was a leader in welfare reform, resource management and environmental stewardship. He improved child welfare services in the state and made strides toward expanding access to health care for children. He made government services more accessible through the Internet. And he always insisted that the government remain accountable to the people it serves.

When confirmed by the Senate, Mike Leavitt will be charged with a broad agenda for the health and safety of the American people.

BUSH: In this new term, we will implement the first-ever prescription drug benefit for seniors under Medicare. We will expand federal cooperation with faith-based groups that provide essential services, such as counseling and treatment for addictions. We will continue pursuing the great promise of medical research, always ensuring that the work is carried out with vigor and moral integrity.

We will not relent in our efforts to protect the American people from disease, and the use of disease as a weapon against us.

Mike Leavitt is the right leader to lead HHS in meeting all these vital commitments.

I thank him for accepting this new responsibility.

I also thank his wife Jackie and their son Westin for being with us today.

I urge the Senate to confirm Governor Leavitt's nomination as soon as possible.

Congratulations.

MICHAEL O. LEAVITT, NOMINEE, SECRETARY OF HEALTH AND HUMAN SERVICES: Mr. President, thank you very much.

I want to express my appreciation for the confidence that you've shown me.

I had a chance a couple of days ago to begin sorting through some of the papers that I have accumulated over 11 years as governor and some time as administrator of the Environmental Protection Agency. I found one letter that expresses what I'm feeling.

LEAVITT: It actually was a letter from a young father, a man I had met several years before. The letter was actually a report on his son. He had recently pass the critical five-year point on a lifesaving procedure that he had that was made possible by Medicaid. It was a letter of gratitude.

As I read it, I felt a sense of gratitude. I felt a sense of gratitude for living in a country where the cares and the values of people matter, and where we care for their health.

And it's gratitude, Mr. President, that I'm feeling today for the privilege of being able to serve in your Cabinet and, should I be confirmed in the Senate, to have this new opportunity to contribute.

I feel a real sense of understandable regret, after having to leave the Environmental Protection Agency. It's an agency that's filled with dedicated people whom I've come to have great affection for and have a sense of shared importance and mission in protecting public health.

The quality of health and the health condition of people in this nation is a commitment that is shared among both agencies, as is the connection between science and health.

As the president suggested, the Department of Health and Human Services plays a vital part of the lives of every American.

I also want to express my admiration for Tommy Thompson. His mark will be indelibly impressed on the history of human services programs in this nation.

As governors, we worked together in helping Congress rewrite welfare reform some years ago, Medicaid improvements and child health insurance programs.

I was delighted when he was appointed as secretary. And, in fact, Tommy Thompson's work has benefited my own state. Thousands of people in my home states have been the beneficiary of his willingness to innovate. Working families, thousands of them, now have health insurance today because of a first-of-its-kind waiver that he provided.

I admire Tommy Thompson greatly, and the prospect of following in his service is an enormous challenge.

But I look forward, as the president said, to the implementation of the Medicare prescription drug program in 2006, medical liability reform and finding ways to reduce the cost of health care.

I am persuaded that we can use technology and innovation to meet our most noble aspirations and not compromise our other values that we hold so dear.

So, Mr. President, I'm looking forward to implementing your vision, and I want to again thank you and the American people and to give you my commitment that I will serve and give this assignment all I have.

Thank you.

BUSH: Good job.

KAGAN: Listening in at the White House, as President Bush nominates Mike Leavitt, the current administrator of the EPA, to take on the Department of health and human services, replacing Tommy Thompson. He's getting ready there to pose with his wife and his son.

Our Suzanne Malveaux standing by at the White House.

Suzanne, as someone who's a -- been leading up the EPA, you know someone -- somebody who's been vetted, and chances are the administration won't walk into the embarrassing mess as they did with Bernie Kerik, to nominate him as head of Homeland Defense.

MALVEAUX: It's not likely they're going to repeat that same mistake, of course. They've gotten a lot of criticism over that, and the debate continues over just whether or not it was Kerik's fault for not giving more detailed information, or whether or not the White House did not vet that nominee well enough to do so. The White House insisting that they looked at all of those details that were necessary, and looked at Kerik and said that perhaps he should have given those details a lot sooner. One thing that Mike Leavitt, of course, is going to have to be dealing with. There's going to be huge challenges in dealing with this particular department. One of the warnings that Secretary Thompson said his parting words were that America's food supply was vulnerable to terrorists, but he was surprised that they hadn't attacked the food supply before. That is the first and foremost something that Leavitt's going to have to deal with.

Secondly, of course, this is a department that is going to face huge budget cuts. And also, of course, it has been bruised by this political battle over prescription drugs through Medicare. This is a program that critics say is largely ineffective, that it's unpopular with seniors. This is something that he is also going to have to deal with in trying to convince seniors that this is something that is workable and affordable -- Daryn.

KAGAN: Suzanne Malveaux at the White House.

Suzanne, thank you.

SANCHEZ: Sure they're going to have a whole lot more news in just a little bit. KAGAN: That we are. Right now, a quick break. We're back after this.

(COMMERCIAL BREAK)

(STOCK MARKET REPORT)

(COMMERCIAL BREAK)

KAGAN: The story and the song have fascinated millions of listeners ever since. Now it is the 25th anniversary. "Grandma's" songwriter is set to release a new album. Watch out. Dr. Elmo joins me live from San Francisco to talk about the popularity of that enduring song, "Grandma Got Run Over by a Reindeer."

Well, good morning.

DR. ELMO, "GRANDMA GOT RUN OVER": Good morning, Daryn.

KAGAN: I believe doctor. Well Dr. Elmo, you're a vet, right?

ELMO: Yes, I am.

KAGAN: Well, congratulations. Happy anniversary.

ELMO: Thank you very much.

KAGAN: You have such a big smile on your face for someone who is real really so politically incorrect. What is the original motivation for the song?

ELMO: It written by a friend of mine named Randy Brooks about his grandmother.

KAGAN: Oh, nice.

ELMO: She used to party a lot at Christmas. And when she was hungover after Christmas, he thought it would be nicer to say she got run over by a reindeer than just simply she was hungover.

KAGAN: Than grandma's drunk or hung over. Some people have been, we have to say, have been offended by the song, calling it ageist, sexist and a violent statement against sold older people of America. What do you say about that, Dr. Elmo?

ELMO: Well, I don't think so. I think it just proves there's a Santa Claus.

KAGAN: OK, we'll leave it at that. As I mentioned, you're a veterinarian by training. Do you think are you inspired by the reindeer, as well?

ELMO: I'm very inspired by reindeer, especially now.

KAGAN: And you're working on a new CD. What could be the politically incorrect topic of this one? ELMO: Well I have a new song about one of my favorite people, and I could just give you a couple of lines from it.

KAGAN: Well, please do.

ELMO: It goes like this: My piggy pudding souffle is solid as a rock, my carrot custard clarboyle (ph) lies curdled in his crock, my house of gingerbread is falling like your stock, Christmas isn't Christmas without Martha.

KAGAN: Oh. Because we all know where Martha Stewart will be spending this Christmas.

ELMO: Yes. And I hope that she's out soon because I don't know what we're going to do without here at Christmas.

KAGAN: I think early spring is when she's getting out. And she's got a new TV deal. She's going to get the best present. She's coming back bigger than ever. You could write a new song perhaps for her now television show that she's going to do.

ELMO: I hope she'll use this one.

KAGAN: Absolutely. You will sign away the exclusive rights no doubt.

ELMO: Yes.

KAGAN: Any other politically incorrect plans for this holiday season, Dr. Elmo?

ELMO: Well, I'm getting ready to -- let's see, I do have one called "Grandma's Killer Fruitcake." I don't like to make fun of fruit cake but it has a line to go -- It was harder than the head of Uncle Bucky, heavy as a sermon of preacher Lucky. One's enough to give the whole state of Kentucky a great big bellyache. It was denser than a drove of barnyard turkeys, tougher than a truckload of all beef jerky, drier than a drought in Albuquerque, grandma's killer fruitcake.

KAGAN: Excellent. You have put us in the holiday spirit. Dr. Elmo, thank you for that. And you have great, great holidays, and happy anniversary for the "Grandma Getting Run Over by a Reindeer Song."

ELMO: One of my anniversary presents is the grandma song after all these years is the No. 1 download on cell phone ringers.

KAGAN: Well, congratulations on that. We'll have to have you stop by at Easter and see what you come up for that.

Dr. Elmo, thanks for stopping by.

KAGAN: Thanks, Daryn. Nice to be on.

Now that is a happy man. SANCHEZ: He certainly is. Maybe he can come by and talk to all the grandmas protesting out there across the street.

"Aviator" is golden. It's a new film that stars Leo, and it gets several nods from the Golden Globes. We'll be back with that and more.

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