Reply #11: Pelosi is not backing off the public option

[ProSense]

While effusively praising Obama's speech from the night before, Pelosi and Senate Majority Leader Harry Reid of Nevada signaled separately the president may not prevail in his call for legislation that allows the federal government to sell insurance in competition with private industry.

Reid said that while he favors a strong "public option," he could be satisfied with establishment of nonprofit cooperatives, along the lines expected to be included in the bill taking shape in the Finance Committee.

Pelosi, who has long favored a measure that allows the government to sell insurance, passed up a chance to say it was a nonnegotiable demand.

As long as legislation makes quality health care more accessible and affordable, "we will go forward with that bill," she said.

Democrats are divided over the public option in both houses, liberals strongly in favor and many moderates against it. Critically, though, it appears that any chance for Republican support would evaporate if legislation permits immediate, direct competition between the government and insurance industry.

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"They hit us with their best shot; distortion, misrepresentation, and obstruction," Pelosi said. But she said Democrats had "sustained the effort admirably" and now "we're in a better place to go forward."

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Not only did CNN leave out that last point (which is the same thing Obama said), but AP claims the Dems are divided in both Houses"?