This is a rush transcript from "Hannity," March 22, 2010. This copy may not be in its final form and may be updated.

SEAN HANNITY, HOST: After a year of concerted effort the Democratic Party finally managed to ram its disastrous health care bill through Congress. The massive tax increases it entails should hit you shortly even though your medical care will not go downhill for a few years.

Now throughout this process we learned what bipartisanship really means to the Democratic Party. There was a lot of talk about getting Republicans on board but in the end the only bipartisanship was in the opposition.

Thirty-four Democrats joined all of the congressional Republicans to oppose this bill. And the road to passing this bill was a bumpy one for the Democrats who had to bribe and bully their own members to eke out 216 votes. And for that and much more they will certainly pay a price in November.

So was it worth it for the Democrats in the end?

Joining me now with reaction to everything that went down yesterday on Capitol Hill is former Alaska governor, Fox News contributor, Sarah Palin.

Governor, it must still be cold in Alaska because I see snow on your roof in the back there. What's the temperature outside?

SARAH PALIN, FOX NEWS CONTRIBUTOR: It is springtime, though. It's about 30 degrees so it's warm, it's fine for us.

HANNITY: All right. I prefer 60 or 70 in springtime. But that's warm, I guess, for Alaska.

All right, I think this is a sad day for this country. I think we saw a shredding of our Constitution. I think the rule of law was passed aside. Alcee Hastings said as much.

How severe is this from your perspective?

PALIN: It's severe but let's not be sad about it. Let's be fired up and energized and invigorated and decide no, we're going to do all that we can to take our country back.

Al Sharpton nailed it. He's the one who said today or yesterday he said, you know, this is social — this is part of the socializing of America that Obama had promised. He hit the nail on the head. And those who support such a thing — socialism — OK, be on that side and support things like Obamacare.

But those who love America and don't want to see that transformation of America into some kind of socialized country, let's get on our high horse and start doing all that we can to provide more education, more information to voters so that in these midterm elections they can elect people who will undo what happened to America last night.

HANNITY: Yes. No, don't misunderstand when I say sad day for me. It was a sad day, because the rule of law was — who would have ever thought that our politicians in America would have to bribe and bully the way they did to get this bill passed?

That part is sad. But you're right. There's a whole group of people out there, including yourself, myself and some others that are saying it's time to take the country back.

What is the worst part of this process, though, for you? What you watched all weekend long?

PALIN: I think some of those things that I deem unconstitutional and many scholars deem unconstitutional, these backroom deals and this buying of votes. That was the only way that Obama was going to get this through and Pelosi and Reid were going to get this through.

But some of the threats to the process that even they had to admit in the end were unconstitutional because they didn't go through with them. They finally took that vote. But for them to think that that was all OK, in spite of the will of the people being so articulated and vocalized by protests and polls and recent elections.

They were going to do it anyway despite these processes they threatened to use to be unconstitutional. That whole notion, I think is the worst part of Obamacare.

Now thankfully, we have Michele Bachmann and we have others already out there on the road who are proposing ways to undo, to repeal this government takeover of 1/6 of our economy.

So let's support Michele Bachmann and others who have the tools at their disposal there in Congress to start undoing what was done to us.

HANNITY: Yes — no, actually Michele Bachmann introduced a bill to repeal this already today.


HANNITY: And speaking of which, we're going to be together at an event for her on April 7th, and I look forward to seeing you there. When you — I guess the question that came up in my mind as we watched all of this take place, I was wondering at some point, why?

Why isn't there one Democrat that was a statesman that would stand up and say no to their party? No to the corrupt methods that they used to pass this?

Were you as surprised as I that there wasn't a single one that really — well, there were a few — I got to give credit, 34 Democrats voted against it. But why weren't there more?

PALIN: I don't know. You know, listening to those clips before I came on the air with you, Sean, listening to Bart Stupak, I just — you know, shaking my head going Bart, give us a break. Really?

You had the opportunity to stand strong with a stiff spine and do what you know is right and instead, you caved, man. You caved. Along with a whole lot of other Democrats who did not agree with Pelosi and Reid and Obama's Obamacare that did, in this instance, fund abortion with our taxpayer — our government funds.

You caved with this promise that Obama has made to you that he'll sign some nonbinding executive order and that should suffice and that should placate you.

No, I'm listening to Bart Stupak and looking at some of these other pro-life Democrats shaking my head with great disappointment. And I think that the majority of pro-life Americans too are shaking their heads going, why did you do it?

HANNITY: You know, and it was funny. I don't know if you happen to watch Megyn Kelly this morning, but, yes, he caved, he was promised this executive order. And he even acknowledged an executive order does not trump a statute. It's — basically it's not even worth the paper that it's printed on. So —

PALIN: That's right. That's right, Sean. And the way it works, too, I signed executive orders as governor, what that does is it tells basically your own administration and your constituents at the time that this is what your desire is, this is what your wish is. You promised to do such and such.

That doesn't trump law. Last night a law was passed that did not answer what Bart Stupak had said he was asking for. Now — again, got to rely on this executive order, coming from the pro-abortion president that America has ever seen.

For Bart Stupak to say that that's all OK is very, very disappointing.

HANNITY: What do you think is the best way — Michele Bachmann has her legislation. Do you think it is best to accomplish this legislatively? That doesn't seem really realistic or possible at this point until a new Congress — is it at the ballot box? Is it through court challenges?

What do you see the best way to accomplish and be successful in accomplishing a repeal?

PALIN: Well, in the midst of supporting Michele Bachmann and others who want this repealed, and I will support her doing that, it does need to be our states who decide that no, respect for the 10th Amendment is important enough that we're going to sue the federal government for this unfunded mandate that is going to bury our states who already have such budgetary problems.

It's got to be in the court of law, our state suing, and then of course at the ballot box. So we've got a three-prong approach here to get this thing fixed, again, that was done to America last night at the ballot box, through the court of law and with — in Congress attempts to repeal Obamacare.

HANNITY: You know, I don't know which is my favorite of the quotes that I heard all weekend. We had the — the Rules Committee chair, Alcee Hastings, actually says well, there ain't no rules around here. We're trying to accomplish something. We make them up as we go along.

We had Tom Perriello say if you don't tie our hands we'll keep stealing. And then Joe Biden says —

PALIN: Right, right.

HANNITY: You know we're going to control the insurance companies?

I'm thinking of the three I can figure out which is my favorite in terms of being the most outrageous. Your thoughts?

PALIN: OK. Let me contribute a couple more then. With Pelosi saying well, we've got to pass the bill so that we know what's in the bill.



PALIN: And then my favorite, though, has got to be Al Sharpton, though, saying yes, this is socialism. Because this is clarity. Finally there is revelation in regards to what it is that President Obama wants to do to this country. It's steps toward insolvency and steps towards a country that is transformed into something unrecognizable.

HANNITY: All right, when we come back, Governor, stay right there, even though it's 30 degrees. We're going to come back. We'll have more of Governor Palin. And we'll talk about, politically speaking, how do Republicans take back the party? And how do conservatives — how did they rise within the Republican ranks?


HANNITY: And we continue now with former Alaska governor, Fox News contributor, Sarah Palin is with us.

All right, let's talk about politics. Let's talk about November. Do you think that many of these Democrats that voted for this health care monstrosity — do you think they walk the plank and ended their career yesterday?

PALIN: I hope so. And what we need to do as constituents, as voters is hold them accountable and fire them because this is not good for the country.

Wasn't health care reform supposed to be about lowering the cost of health care for Americans and providing more coverage? This does absolutely nothing to lower our health care bills that we are faced with. So this was about politics.

It was about obsessive partisanship and a power struggle within our country's political system. Did nothing to help with the health care reform that's needed. What we need to do, Sean, is remember that this needs to be a ground up effort to fire those who have cast these votes, that put us on this road towards — closer to insolvency in our country.

Local level, we need to make sure that we have local officials who are elected who understand free market principles and understand protection of our Constitution so that they can help those who are, I guess, higher up on that ladder politically speaking.

HANNITY: Look, I've been a conservative out here saying that conservatives need to take back the Republican Party. There are now great distinctions between R and D in the country. Republican and Democrat.

Republicans oppose cap and tax, they oppose the stimulus, they oppose the health care bill, they have offered free market alternatives. I think there are pretty great distinctions.

Do you have faith and confidence that if given the chance to get back to power, because I think you identify more as a conservative, as I am — do you think the Republican Party will revert back to some of their more liberal ways that got them in trouble?

PALIN: No, I think this was a clarion call for those who are registered in the Republican Party but have been kind of namby-pamby and politically correct and not wanting to make a lot of waves. Obamacare has been that clarion call because they have heard from voters.

They've heard from constituents say no, we expect you to protect our Constitution, protect those values and principles in our free market that have built America into this great country.

And I think that you're going to see a lot of contested primaries within the Republican Party. Thank God. We need contested primaries so that those who have been kind of politically correct middle of the road Republican to sort of going along with the flow not making a whole lot of waves that they have to debate these issues, they have to explain themselves. Including explaining themselves as to why perhaps they weren't vocally in opposition of Obamacare. Why they haven't been capitalizing on their positions of power and authority to get Americans to understand what it is that Obama, Pelosi and Reid have wanted to do to this country.

HANNITY: I know you've spoken at a lot of Tea Party events. And I have — I've been at a number of them and I've covered a number of them. I guess from my vantage point I don't think this vote would have been close except that being a bottom-up movement.

That is people speaking out with fierce opposition. I think they scared a lot of these members of Congress.

So my question to you is, do you have any worry or any concern that if there's a Tea Party candidate — for example, one could run in Nevada and kind of mess up that Harry Reid race. Are you concerned that conservatives need to make sure that they unite behind one candidate and not splinter off?

PALIN: No, I still want to see the contested primaries. I want to see the healthy, vigorous debate that talks about ideas and not personalities. I want to — I want to encourage that. And then that best candidate will rise to the top that way.

HANNITY: I'm not saying necessarily, I think they should have open primaries, too. And I think the best person should win. And I don't think they should be picked by individuals except on the merits of their positions.

But when we get to the general election, like in the case of Harry Reid. You know, Harry Reid, oh, I'm encouraging. He wants a tea party candidate in that race. And there might be one there.

In that instance if you — for example if it's Doug Hoffman and Dee Dee Scozzafava, I'm going to support Doug Hoffman, you supported Doug Hoffman in the New York 23rd.

If it's a strong conservative that gets the Republican nomination and then a Tea Party member runs as a third party candidate, do you have any worry about that?

PALIN: I do have a little bit of worry about that but at the same time that can be part of a healthy process, though. A third party candidate can really shore-up a Republican candidate in terms of that Republican candidate having to be very strong and sharp and debate aggressively, regarding the positions that they have taken.

A third party candidate, I think, Sean, can actually help in this process. And if nothing else a third-party candidate is going to help keep the Republican Party being held accountable, too.

HANNITY: Honest.

PALIN: This Tea Party movement, what it has done is forced both parties to rethink the way that they've been doing business and that's good.

HANNITY: No. That I would agree with. I think — and holding everybody accountable, including Republicans, some of which lost their ways and abandoned some of their conservative principles and values, I think is very important because I think if the country is to recover from the disastrous year or 14 months of President Obama, Nancy Pelosi and Harry Reid, we're going to need that.

Once — now we're going to be together on April 7th at Michele Bachmann's event. And we're excited. We're going to be able to see you there and it's going to be a lot of fun. We're going to be on a conservative victory tour.

And I look forward, Governor, to seeing you there. And I hear there may be tens of thousands but they're there for you. I know that. You and Michele Bachmann.

PALIN: No, no, no. No, they're there for the message, though and there for the ideas.

And Sean, let's encourage people, too, to get as much information about all of these issues as possible and then they can make up their mind.


PALIN: Whether it's good, bad or ugly what Obama is doing. Let's get the information out there to them, though, and make sure that people are well informed as they go into these midterm elections.

HANNITY: All right, Governor, listen, appreciate you joining us. And I hope it gets a little bit warmer, 45 degrees, and you'll be in the a t-shirt. That will be great.

PALIN: Yes, right on.

HANNITY: All right. Thanks for being with us.

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