TL;DR version: Yes.
This photo has been shared on Twitter a lot recently, during unrest in Ferguson over the fatal police shooting of unarmed black teenager Michael Brown.
Ludicrous and contemptible. Fox News is so vile. pic.twitter.com/YSlldmipIc— James Asser (@JamesAsser) August 20, 2014
The above exchange did take place, albeit in 2010.
Remarkably, Marc Lamont Hill (PhD) took the remark from Bill O'Reilly in good humour, responding with: "As do you - you look like a cocaine user, we're even."
Watch the full segment here.