House Leaders Compromise on Healthcare Public Option: Withdraw plan for robust public option

[Better Believe It]

House Leaders Compromise on Public Option
By MARTIN VAUGHAN
October 28, 2009

WASHINGTON -- House Democratic leaders are likely to include a compromise version of a public insurance option with rates negotiated with health-care providers, in sweeping health-care-overhaul legislation that could be unveiled as early as Thursday.

House leaders are embracing the compromise version after falling well short of enough votes in the House to pass the more robust public option favored by liberal Democrats. The debate over what form the public option should take has been the most controversial and emotional issue as House leaders finalize a landmark proposal to overhaul the U.S. health system.

While some key details of the long-awaited House bill are starting to come into focus, House aides cautioned that final decisions haven't been made. Some of those decisions might be made at a House leadership meeting slated for Thursday afternoon.

The rejection of the "robust" public option, which would have reimbursed doctors and hospitals based on Medicare rates instead of negotiated rates, is something of a victory for moderate Democrats and the health-insurance industry, which worries that it won't be able to compete with a strong government-backed insurance program.

Rep. Lynn Woolsey (D., Calif.), who chairs a group of House progressive Democrats, said she is reserving judgment until she sees the bill language. "We'll be insisting on it being as strong as it possibly can. If it isn't, we won't be supporting it," she said.

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Democrats ready with tempered public option, aides say
From Deirdre Walsh
CNN Congressional Producer
October 28, 2009

Washington (CNN) -- House Democratic leaders are preparing to unveil as soon as Thursday a health care bill that includes a more moderate version of the public option, several Democratic leadership aides say.

This version would allow doctors to negotiate reimbursement rates with the federal government, the aides said Wednesday.

The proposal would be a blow to Speaker of the House Nancy Pelosi, who has argued for a more "robust" public option, one that ties reimbursement rates for providers and hospitals to Medicare rates plus a 5 percent increase.

But Pelosi and other Democratic leaders, after a week of canvassing rank and file Democrats, appear to be bowing to the reality that her preferred approach does not have enough votes. Instead, the more moderate version, favored by rural and moderate members, appears to have the most support among House Democrats.

"The votes aren't there for robust public option, so that means we're looking at the other form of the public option," a Democratic aide said.

http://edition.cnn.com/2009/POLITICS/10/28/health.care/