Senate Democrats reach healthcare deal on 'public option'
The government would contract with a nonprofit insurer for a nationwide plan.
By Janet Hook and Noam N. Levey
December 9, 2009
Reporting from Washington - Senate Democrats reached what Majority Leader Harry Reid (D-Nev.) called a "broad agreement" Tuesday night that could remove a major obstacle to the massive healthcare bill.
Under the compromise developed by a group of conservative and liberal Democrats, the Senate legislation would no longer include a new government-run insurance program, or "public option," for Americans who do not get coverage through their employers.
Instead, the government would essentially contract with a nonprofit insurer to provide a nationwide plan that would serve as the public option, according to officials briefed on the discussions. Combined with a vote earlier in the day that rejected efforts to tighten restrictions on public money for abortion, the compromise kept the Senate moving toward Reid's goal of voting on the healthcare bill before Christmas.
Reid's office issued a statement saying he was "confident" that he could sell the plan to the Democratic caucus. "This has been a long journey," he said. "We have confronted many hurdles, and tonight I believe we have overcome yet another one."
The government would oversee the nonprofit plan, ensuring that it met basic standards for quality and affordability. That provision was designed to satisfy demands from many on the left that the government provide consumers with an alternative to coverage offered by for-profit insurers.
Sens. Russell D. Feingold (D-Wis.) and Bernie Sanders (I-Vt.), both leading liberals, expressed reservations Tuesday evening about any legislation without a government plan. "I do not support proposals that would replace the public option in the bill with a purely private approach," Feingold said.
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