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Democrats' health overhaul may dump government insurance option

David Lightman and William Douglas - McClatchy Newspapers
Issue date: 7/23/09 Section: Real News
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WASHINGTON - The idea - beloved by President Barack Obama and liberal Democrats - that any overhaul of the nation's health care system should include a government-run insurance option to compete with private insurers is losing important political momentum.

Democratic leaders of the Senate and the House of Representatives wouldn't guarantee Tuesday that the "public option" would be in the final version of the legislation. Neither chamber's leaders would rule out backing alternative co-ops - member-run health care consortiums comparable to credit unions - instead, an alternative that's popular with moderates but not with liberals.

The continuing struggle among Democrats over such fundamental points of how to overhaul health care is delaying Congress' timetable. While Obama and Democratic congressional leaders had hoped that the House and Senate would approve their separate versions of a plan before taking an August recess, neither chamber is likely now to vote before September, and then their versions would have to be reconciled and approved by each chamber again, a process that probably will stretch on for months.

"We think the public option is very important," said House Majority Leader Steny Hoyer, D-Md., but "we have to see what the Senate does on co-ops, and see how it's formulated, to see whether or not it would have a similar effect."

"It's really premature for me to lay out what should be in this bill," said Senate Majority Leader Harry Reid, D-Nev., when he was asked about the public option.

Six Senate Finance Committee members, three from each party, are hoping to complete an agreement on their version of a health care overhaul by the end of next week. Because theirs is the only high-level bipartisan effort to craft a bill - which would enhance its chance of enactment - it's being watched closely, and they're expected to recommend a system of co-ops rather than a full-scale government insurance program.

Removing the public option would lift a huge political burden from moderate and conservative Democrats, who are skittish about backing a plan that Republicans blast as a major step toward a big-government takeover of health care.
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