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This is a RUSH transcript from "The O'Reilly Factor," October 29, 2013. This copy may not be in its final form and may be updated.

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O'REILLY: And in the "Impact Segment" tonight, reaction to the President's massive problem with Obamacare. Joining us from Washington, Fox News political analyst Charles Krauthammer. So how about that bit of brilliance in the "Talking Points Memo", huh?

CHARLES KRAUTHAMMER, FOX NEWS CONTRIBUTOR: I give you a plus.

O'REILLY: Really, a plus from the doctor? That's big time.

KRAUTHAMMER: And I rarely hand them out, particularly to you.

O'REILLY: Sure.

KRAUTHAMMER: You know on this one but you got one thing slightly wrong so maybe it's just a straight A. We talk about political lies. That's what you got from Clarence Page. And I don't think that's right.

When a President says he didn't know about the tapping of the German chancellor, that's a political lie. Everybody knows that when it comes to foreign intelligence, everybody lies. It's understood. You know the old definition of a diplomat is a gentleman sent abroad to lie for his country. So that's known.

But when you're talking to your own people in trying to sell a program and you know -- deliberately you know that something is not true, but you say something so that it will pass, after which it's already the law, it's extremely hard to undo, that is a real lie, it's not a political lie.

Now the question is did Obama really know that all these plans would be canceled? Now, I can't prove it. And you are assuming that he probably didn't because he doesn't pay attention.

O'REILLY: He doesn't pay attention.

KRAUTHAMMER: But here is the argument against that. The argument against that is that it is an essential part of Obamacare that the government dictates what is supposed to be the correct level of coverage. It's the usual liberal arrogance and paternalism. We know what ought to be in your plan. You heard Carney say these are substandard plans -- substandard?

These are plans that hundreds of thousands of Americans have looked at, studied, chosen, renewed and they like. And, yet, the Washington experts step in and say we know it's not a good plan and you're going to lose it. Now I think Obama probably -- though I can't -- there is no way to drill into his head and to know, but he probably knew but that's an essential element of what he has created.

And the reason they did this is as you said, and here is where you get the A, because by making plans more expensive, by adding stuff that people do not need so that if you are 60 years old and you are a single guy, you're getting maternity coverage and you're paying for it. By doing that you are subsidizing the uninsured.

O'REILLY: Correct.

KRAUTHAMMER: So instead of subsidizing them directly with a tax and being honest with that what you are trying to do is disguise it by hiking the premiums and then here is what people leave out, hiking the deductibles. And that's where people are going to get real sticker shock.

O'REILLY: All right. But you know as well as I do that in the political culture there is a CYA component? It's not YMCA, cover your butt -- that would be CYB but they use another word for butt. All right.

KRAUTHAMMER: Correct, CYB.

O'REILLY: I submit to you -- I submit to you that Barack Obama is the champion of this. And that the way he administrates is "I don't want to know. Don't tell me. Don't tell me about Fast and Furious. Don't tell me about Libya's security. Don't tell me about the IRS hunting down the Tea Party people. I'm fine with it, don't tell me." I know he didn't read the 1,400 page Obamacare law.

KRAUTHAMMER: But that's not where you get that information. He would get it from the people who put the plan together.

O'REILLY: But he wouldn't even ask him. I bet you they didn't even have a meeting with him.

KRAUTHAMMER: But this isn't even a detail. Ok here is where I think I have got some experience. I have met the President twice off the record once a week before he was sworn in and once a few weeks ago.

O'REILLY: That's right.

KRAUTHAMMER: But, you know from, that impression, this is a total of six hours. I'm not an expert on him and I'm not acting as a psychiatrist. I found him to be on every issue highly engaged and highly knowledgeable. He is not the kind of guy who does not care about the essence of a program, even the details of a program. It's not evidence that I can say you can't refute. It's not proof that he knew about this.

But his -- the way he thinks, the way he acts and the way he has the curiosity of somebody intelligent would say that he actually probably knew.

(CROSSTALK)

O'REILLY: Ok. Let's assume you are right. So what you are presenting tonight is here is the President of the United States who knows of what he is saying is a lie. It's not true. But he knows it's going to be proven to be a lie. So he's getting away with it in the run up.

KRAUTHAMMER: Exactly.

O'REILLY: But he knows he's 24-hour cable, he know Krauthammer is around, he know O'Reilly is around, he knows talk radio is around, he knows the Internet is around.

He knows he's going to be held to account when the things that he says, you want your plan, you bet to keep your plan. You want your doctor you get to keep your doctor. He knows that's not going to happen. So you're telling me that a guy like Barack Obama is going to -- is going to put himself out for that kind of scorn?

KRAUTHAMMER: But that's exactly what he did on Benghazi. Everybody knew it wasn't a spontaneous demonstration. They stuck to that story.

O'REILLY: But he thought he could get away with that because people weren't paying attention.

KRAUTHAMMER: Oh come on, paying attention -- four dead Americans.

O'REILLY: Most people if you go out today and ask Benghazi they don't know, Charles, but they do know this because it's their wallet.

KRAUTHAMMER: Look I think the modus operandi if you look at Benghazi you look at the failure of the exchanges. Did anybody have any idea it was going to be a disaster? Did nobody even hint at the President there might be a problem? But the Benghazi, I think is conclusive. Here was a story that was completely untrue. And they stuck with it. Obama himself.

O'REILLY: Oh so -- all right I'm going to give you an extra minute I'm going to hold you over for an extra minute.

KRAUTHAMMER: I don't know how a man could imagine he gets away with it.

O'REILLY: Right, how does he think he is going to get away with it?

KRAUTHAMMER: But he's done it.

O'REILLY: No but he's not getting away with it. His whole administration is unraveling right before our eyes right now.

KRAUTHAMMER: He got away with it on Benghazi and I would say he miscalculated on this. But his -- the way he's operated in the past implies that he thinks with a supine press the way the media are his acolytes and absorb everything he does and are usually extremely passive, he must have thought "I will get away with it the way I did on Benghazi."

O'REILLY: Wow -- well it's all going down now.

KRAUTHAMMER: And it's all speculation. Look, it is possible he didn't know.

O'REILLY: Ok.

KRAUTHAMMER: I'm saying it is unlikely that he didn't know.

O'REILLY: And the A plus Charles, you know, I'm going to go out.

KRAUTHAMMER: It's hovering now, no it's hovering now around an A. And it could even head towards a B, you never know. I wouldn't push it.

O'REILLY: Let's not go overboard. Let's not go overboard.

KRAUTHAMMER: But there is always next week.

O'REILLY: All right Dr. Krauthammer's new book "Things that Matter", breaking big, ladies and gentlemen. It should debut in the top five on the "New York Times" best seller list which will drive them crazy because I'm number one. It's a good read and you should check it out.

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