The return of ObamaCare's 'death panels'

This is a rush transcript from "Hannity," July 30, 2013. This copy may not be in its final form and may be updated.

SEAN HANNITY, HOST: There is new evidence to suggest the so-called ObamaCare death panels are in fact alive and well. But you don't have to take my word for it because now, even the former head of the Democratic Party, who also happens to be a medical doctor, he is sounding the alarm.

Now, in a Wall Street Journal op-ed, 2004 presidential contender Howard Dean is screaming to high heaven about what he calls a quote, "major problem" with the law known as the independent payment advisory board.

Now, according to Dr. Dean, quote, "The IPAB is essentially a health care rationing body. By setting doctor reimbursement rates for Medicare, and determining which procedures and drugs will be covered and at what price, the IPAB will be able to stop certain treatments its members do not favor by simply setting rates to levels where no doctor or hospital will perform them."

Now, there are few important reasons why this story is important to you and your family. Number one, a high profile Democrat, one time medical doctor is finally admitting this board is a quote, "health care rationing body."

Number two, he's also acknowledging that this body has the authority to quote, "stop certain treatments." That's scary.

And number three, and perhaps the most important reason of all, this developing story serves as yet another frightening reminder that we were all misled by ObamaCare.

Now, whether it's the president, Howard Dean or any other colleagues on the left, we were promised remember, we could keep our own doctors, we were promised our premiums would go down, and under no uncertain terms we were promised that death panels would never exist. You may remember this.

(BEGIN VIDEO CLIPS)

PRESIDENT BARACK OBAMA, AUG. 22, 2009: Every credible person who has looked into it has said there are no so called death panels. An offensive notion to me and the American people. These are phony claims meant to divide us. And we've all heard the charge that reform will somehow bring about a government takeover of health care. I know that sounds scary to many folks. It sounds scary to me too. But here's the thing, it's not true.

HOWARD DEAN, FORMER DNC CHAIR, AUG. 23, 2009: I think it's despicable. I think it's awful that the lies that have come out on this bill that are just designed to frighten the daylights out of people.

(END VIDEO CLIPS)

HANNITY: Now, given the fact that even Howard Dean the scream machine is now admitting that health care rationing bodies exist because of ObamaCare -- you know, tonight we're going to talk to, in just a couple minutes when we get her on the line here, we're going to be joined by Governor Sarah Palin.

Let me point out a of couple things. If you go back and you remember Obamacare, what did the president say? Well, every American was going to be insured. We now know because of the Congressional Budget Office that in fact 30 million Americans are not going to be insured, even paying 10 years for six years of so-called services.

The president said the average rate would go down $2500 for a family. We now know that in states like Ohio, those rates are going up 88 percent. In California, as high as 164 percent. That's not coming true.

Now, even when you have the three largest labor unions, led by Jimmy Hoffa, Jr. and he's out there saying that this is a bad deal, that this will literally ruin what we know as the 40 hour workweek in America, you know that's not working as well.

All right. Joining me now is former Alaska governor, Fox News contributor, Governor Sarah Palin. Governor, how are you? Welcome back.

SARAH PALIN, FOX NEWS CONTRIBUTOR (on the phone): I'm doing great, Sean, thank you.

HANNITY: I appreciate it. All right.

What do you make -- you took a lot of heat and a lot of fire for death panel, the comment you made. Maybe the case of Sarah Murnaghan, the 10-year-old little girl who wasn't allowed, because Kathleen Sebelius wouldn't sign off on the adult lung transplant? Does that sound like a death panel to you?

PALIN: Well, you know, it wasn't me just saying that there were death panels in ObamaCare back in 2010. Anybody who could read into that, it's a bureaucratic panel that will decide based on a human being's level of productivity, some subjective and political decisions being made as to whether they deserve a medical care or not. And yes, the little girl is a prime example of a bureaucrat being able to make that decision, which is a scary thing.

HANNITY: You know, and now even Howard Dean is acknowledging this. Howard Dean? What do you take of the op-ed that he had out there?

PALIN: Haven't read his op-ed. Haven't wasted my time on it because I think I and others waste too much time listening to the liberal pundits a few years ago, when they said that that was the biggest lie of the year was that my claim that death panels were a part of ObamaCare and the rationing of health care services.

But now, that's proven to be true. Well, I guess I could say (INAUDIBLE) that I appreciate Howard Dean acknowledging it finally.

HANNITY: Let's talk a little bit, we're going to have Senator Cruz on the program tonight, and he and Mike Lee, Rand Paul, Marco Rubio and then a number of House Republicans. There's a big battle coming up here. Because conservatives, while they appreciate the symbolic votes to repeal ObamaCare in the House, none of them had any teeth. And Mike Lee is saying fund the rest of the government, but defund ObamaCare. They're meeting a lot of resistance, what's your reaction?

PALIN: That's common sense. Remember with our separation of powers. He who holds the purse strings is he who is in the legislature. So Congress holds the purse strings, they can un-fund anything they want to. That's how you stop something that is not right. It's not good. It's not economic for we the people. So, it's a wise decision for Mr. Lee and others to decide not to budget for something that's going to be so

burdensome to the American people.

HANNITY: I think, to me, it's a no brainer. Why do you think -- and what's your reaction to those that say this is bad politically. I mean, is this the establishment versus the Tea Party once again, Governor?

PALIN: Well, yes. Doggonit, Sean. You know, those within that machine, that hierarchy and the GOP that they're trying to go along to get along with Obama, because they want to ingratiate themselves with the liberal media which is the lapdog for Obama. It's unfortunate that they can't see what the end result of Obamacare is going to be. And that is again, such a burden on all of our small businesses. It's going to be resulting in that single payer system that Barack Obama admitted he wanted before he was a candidate even, and that's going to be the end result, and that's absolutely what we do not need.

Not only does it strip away our freedoms as Americans, but ObamaCare will bankrupt so many businesses and it will continue to add to the bankruptcy of our nation, already $17 trillion in debt.

So if those within that hierarchy and machine, if they could just acknowledge that ObamaCare is the end result, is so bad for the people, that they would go along with the un-funding, the defunding of the bureaucratic program that just isn't going to work. I think even they admit that it's not going to work.

HANNITY: You know, all right, so those -- there's a lot of people saying that Republicans either in the House or the Senate, that do not go along with defunding ObamaCare. Walk it through, their fear is, that politically there's going to be some damage and there's no way the President will sign on to it, even if they fund the rest of the government.

Should that be a consideration, would that be a line drawn in the sand? You're a prominent Tea Party conservative. Is that a line in the sand for you?

PALIN: Well, it is, but so many other things are, that line in the sand that should be drawn. When it comes to, you know, following the Constitution, and following sound economic principle and not living beyond our means as a government. Just the common sense measures to make sure that we're abiding by those three things that I just mentioned, that means that we don't do things like Obamacare, and when we have the tool to undo Obama care, in this case, Sean, the tool is not funding Obamacare, then it's very important for conservatives, fiscal conservatives and independents to stand up.

And if you're going to go down, at least go down swinging. Don't vacillate and capitulate, give in to Obama and the media, thinking that they're going to come around and like you after all for being on their side on this issue. They're not, they go home at the end of the day, and their home is more leftist -- big government that will burden us.

HANNITY: All right. Governor, we appreciate it.

By the way, the Governor was supposed to join us actually on satellite, but it went down. So much for great technology. But it happens once in a while.

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