This is a RUSH transcript from "The O'Reilly Factor," September 22, 2009. This copy may not be in its final form and may be updated.

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BILL O'REILLY, FOX NEWS HOST: "Impact" segment tonight, President Obama has been quite clear saying rudeness in the political discourse is hurting the nation. And last night, President Clinton picked up on that.


BILL CLINTON, FORMER PRESIDENT: Since the hard core right wing of the Republican party took over their party in the late 1970s, we've become more partisan and polarized. I remember I was kidding. Newt Gingrich the other day, you know, we're out of politics, we can be nice to each other now, that he once -- we were at Senator Lott's portrait inviting. And I said now you know, the worst thing Trent Lott ever said was that I was a spoiled brat. But Newt once said that I was the enemy of normal Americans.


O'REILLY: With us now, FOX News analyst and former Speaker of the House, the aforementioned Newt Gingrich, who hosts a new DVD with his wife called "Rediscovering God in America II: Our Heritage."

So this is now becoming a big deal this rudeness factor. But you know, I've been doing this 13 years. And I guess I'm the poster boy for rudeness. I guess I'm the problem here, ladies and gentlemen.


O'REILLY: But, what we try to do here is vigorous debate. Once in a while we get a little rude when we feel that something is very, very wrong. But I never heard all of this stuff from the media or from anybody else when they were kicking the living daylights out of Bush and Cheney. You know, how rude were those people getting them?

GINGRICH: When several dozen Democrats were booing President George W. Bush in the 2005 state of the union, that was somehow not inappropriate. Because, after all, he deserved to be booed because he wasn't a liberal. When Tipp O'Neal said of Ronald Reagan he has ice water in his heart, that was somehow not inappropriate because after all Tipp O'Neal was a lovely Irish liberal Democrat and therefore, what he said must have just been okay. There's this weird double standard. You know, ACORN, which has now become fairly famous, is an organization dedicated to disruption, which the president worked with very, very closely. His Justice Department just dropped a case which they were winning against a group of left wing activists who were filmed browbeating and intimidating voters last year. So.

O'REILLY: The Black Panther case in Philadelphia.

GINGRICH: Exactly, so.

O'REILLY: Right, is what you are talking about.

GINGRICH: So as long as you're a left winger, violating the rules, disrupting meetings, imposing your will, yelling at people, saying bad things, that's not bad behavior.

O'REILLY: Okay, but we never justify bad behavior by pointing to bad behavior.

GINGRICH: No, but I'm just.

O'REILLY: We don't do that. And I think Joe Wilson made a mistake.

GINGRICH: I do, too.

O'REILLY: You know, because look, you win the debate in the long run. And that's why we've been number one for almost nine years with the facts.


O'REILLY: You win it with the facts. You don't win it by calling people names. You don't win it by disrupting and being disrespectful to the president of the United States even if you disagree with them. You don't do that.

So Wilson hurt his own cause. But I have to submit to you that there's a lot of meanness going on. I think it's worse than it's ever been in the media. There is just nasty, nasty stuff coming down on both sides.

GINGRICH: Well, I think first of all the breakdown of the media, the rise of blogs, the rise of anybody who wants to write anything they want to. ...

O'REILLY: Right.

GINGRICH: ... has led a lot of people anonymously to write a lot of hateful things because they can do it. And they can post it.

O'REILLY: And get away with it.

GINGRICH: And get away with it.

O'REILLY: Right.

GINGRICH: But let's be clear. What Joe Wilson did was wrong. And he has apologized. To the best of my knowledge, not a single one of the Democrats who booed President George W. Bush, not a single one, ever apologized. I'm just making the case there's a double standard.

O'REILLY: Absolutely. Everybody knows that.


O'REILLY: Everybody knows that.

GINGRICH: I wish we could get back to a clear pattern of debate. Every time I go out on the road and I'm in a situation I was recently with Robert Rush, for example. I've done some things with Howard Dean. Every time we're civil and we have a rational -- the kind of conversation you and I are having, audiences are delighted. I mean, they're eager to have people who can disagree without being disagreeable.

O'REILLY: They are. But sometimes you have to -- and I do this probably too much, confront. You know, look, Barney Frank, in the most famous recently on "The Factor", came on here and lied.


O'REILLY: He lied about his outlook of Fannie Mae and Freddie Mac when we just played the clip. And he was trying to tell the audience I didn't say what you just heard me say. Howard Dean did the exact same thing the other day. There you have to go after them. There you have to say.

GINGRICH: Well, you don't have to be mean. All you have to do is replay the clip.

O'REILLY: Right. But then when he's standing there and going no, I didn't do it, you got to say yeah, you did it. And then people go you're rude. There is a place for rudeness. But it has to be the last.

GINGRICH: Okay, I don't want to be rude.

O'REILLY: No, you can be rude.

GINGRICH: I'd rather think there's a place for directness.

O'REILLY: All right. Well, I like that. I'm direct and not rude.

All right, now we're going to hold the Speaker over because I want to find out three things that Speaker Gingrich think would make health care reform acceptable to all of us. Three things.

And later, California now says doctors who gave Anna Nicole Smith massive amounts of narcotics were actually sexually involved with her. Is it legal? Upcoming.


O'REILLY: Continuing now with FOX News analyst Newt Gingrich, who's spent a lot of time studying health care in America.

So Mr. Speaker, the three things that would bring us all together, liberals, conservatives, Democrat, Republicans, so we could have genuine health care reform, which we need. Everybody knows we need it. Give me three things.

GINGRICH: Well, look, the Center for Health Transformation we've developed those kind of things. One, we ought to have a system where you know price and quality and where you get to make choices.

O'REILLY: Okay. So let's stop you there.


O'REILLY: So all the procedures and the drugs and everything should be listed somewhere on the Internet.


O'REILLY: So people can say this is how much it should cost.

GINGRICH: Well, the state of Florida now posts all the prices. And they discovered, shockingly, people went to the less expensive drugstore.

O'REILLY: There you go.

GINGRICH: I mean, they brought down the price when they knew the price.

O'REILLY: Because everybody has co-pays. And so you bring it down. All right, I like that.

GINGRICH: That's number one. Okay.

O'REILLY: Okay. Go.

GINGRICH: Number two, allow insurance companies to sell across state lines. If you simply did something Congressman Darrel Ice has introduced and allow the federal employee health benefit plans to automatically be available in every state. There would be 305 different insurance choices available tomorrow morning for every small business in America.

O'REILLY: Now that seems to be simple. That seems to be easy. Let's try that.

GINGRICH: I mean it's so totally doable.

O'REILLY: Well, why won't they do it?

GINGRICH: Because it would work.

O'REILLY: No. There's got to be another reason.

GINGRICH: No, if you.

O'REILLY: There's go to be another reason.

GINGRICH: Okay, I don't want to be rude but I want to be direct.

O'REILLY: You can be rude.

GINGRICH: If you are a liberal, and your number one goal is to have a bigger bureaucracy with more power in Washington, D.C., and we come along with market-oriented solution that actually makes Washington less important.

O'REILLY: So it's ideology then.

GINGRICH: Ideology blocks it.

Let me give you the third example that I think's just amazing. Jim Frogue, who works with us at the center, just wrote a book called "Stop Paying the Crooks." Now you would think that's a pretty straightforward model. We believe there's between $70 and $120 billion a year stolen in Medicare and Medicaid.

O'REILLY: But Obama's going to stop all that. He's going to stop it all.

GINGRICH: They don't have a single provision.

O'REILLY: And that's going to pay for everybody's health care.

GINGRICH: They don't have a single provision that does that.

O'REILLY: But he'll do it. The president will do it.

GINGRICH: Well, I'm glad you believe that.

O'REILLY: I'm just saying what he's saying. Isn't he saying that?

GINGRICH: Well, he's saying it, but there's nothing in the bill that does it.

O'REILLY: But he's going to do it. You don't understand.

GINGRICH: I actually am an old fashioned American. I like to see the legislative language. I like to see how it's going to happen.

O'REILLY: You know, I was the first one that said and George Stephanopoulos agree with me that's impossible.

GINGRICH: When somebody comes up to see and says I really do have the Brooklyn bridge for sale, I'd like to see the certificate.


GINGRICH: Not just give them a check.

O'REILLY: They want to see - okay, now, I have a beef with you on something that you like and that's putting medical records on electronic, take them out of paper.

GINGRICH: Why is that a beef?

O'REILLY: Because, if you have anything on the Internet, it can be hacked into, stolen, it can be downloaded. And I don't want my health care records in the hands of anybody but my doctor.

GINGRICH: Well, first of all, Kaiser Permanente has 13 million electronic health records. The VA has 24 million electronic health records. Virtually everybody watching us uses an automatic teller machine. They go all over the planet. They put a plastic card.

O'REILLY: Do you want your health care records though to be accessed by people who want to hurt you?

GINGRICH: You are in greater danger of having somebody Xerox your paper records. I mean, look at the George Clooney case a couple years ago. You're in greater danger of having somebody Xerox your paper records than you are of having.

O'REILLY: You don't feel that the patient-doctor confidentiality that supposedly exists in this country is worth anything.

GINGRICH: No, I believe there ought be a federal law that makes it a very severe felony to hack into electronic health records because I believe we should say to the country at large it's so important that you have confidence in your electronic health record that anybody who hacks in goes to jail for a really long time.

O'REILLY: Very hard to catch these guys, these scoundrels. You see, that high tech is a double edge sword. Yes, it would save billions. Yes, it will make the treatment.

GINGRICH: If you're in a car wreck somewhere and you are in a coma, and they can access your records.

O'REILLY: They can save your life.

GINGRICH: And they save your life.

O'REILLY: Right.

GINGRICH: You'll glad we took the risk.

O'REILLY: Should it be.

GINGRICH: Oh, I think you can have opt out procedures.

O'REILLY: Right, because if you have the opt out.

GINGRICH: 98% of the country will opt in.

O'REILLY: All right, Newt Gingrich, everybody. Not too rude. I'm glad.


O'REILLY: Sometimes you frighten me.


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