CBS/AP/ August 16, 2009, 10:56 AM

Public Option Up in the Air After Comments

White House officials gave conflicting statements Sunday about whether the final draft of a health care reform bill would include a public option.

In an appearance on "Face the Nation," White House Press Secretary Robert Gibbs indicated that President Obama still favors a public option, saying it would drive down costs and provide more options, particularly for people who currently have limited options.

But also on Sunday, Health Secretary Kathleen Sebelius said a government alternative to private health insurance is "not the essential element" of the administration's health care overhaul.

Sebelius' comments indicated the White House could jettison the contentious public option and settle on insurance cooperatives as an acceptable alternative, a move embraced by some Republicans lawmakers who have strongly opposed the administration's approach so far.

Officials from both political parties reached across the aisle in an effort to find compromises on proposals they left behind when they returned to their districts for an August recess. Mr. Obama has been pressing for the government to run a health insurance organization to help cover the nation's almost 50 million uninsured.

Sebelius said the White House would be open to co-ops instead of a government-run public option, a sign Democrats want a compromise so they can declare a victory on the must-win showdown.

"I think there will be a competitor to private insurers," she said. "That's really the essential part, is you don't turn over the whole new marketplace to private insurance companies and trust them to do the right thing. We need some choices, we need some competition."

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Ralph Neas, CEO of the National Coalition on Health Care, a non-partisan alliance of groups working for health care reform, talked with CBS News Correspondent Martha Teichner about why angry opponents of the Democrats' reform efforts keep bringing up the public option at town-hall meetings across the country on CBS's "Sunday Morning."

"The reason they oppose the public option is they think it's a stalking horse. They think the real plan of President Obama, or those who want health care reform, is to have single-payer, totally government-run health care reform," Neas said. "It will fail if people think it is tilted to kill the private insurance industry."

Political professor Larry Sabato, who directs the University of Virginia's Center for Politics, told CBS News Correspondent Sharyl Attkisson that GOP voters, still dissatisfied with Mr. Obama's election last November, are using the health care debate to vent their frustrations about the president.

"It's about a whole range of issues that started to develop last November after Barack Obama's election," Sabato said. "Then as Obama started making appointments, getting a stimulus bill passed, proposing a health care initiative, all of this further irritated the 46 percent who voted against him … You can almost see that the anger and frustration have built up month after month, and it's exploded, and the proximate cause of the explosion is health care."

Sen. Richard Shelby, R-Ala., said co-ops might be a politically acceptable alternative as "a step away from the government takeover of the health care system" that the GOP has assailed.

Sen. Kent Conrad, D-N.D., chairman of the Senate's budget committee, pushed the co-op model as an alternative, saying it has worked in other business models.

As proposed by Conrad, the co-ops would receive federal startup money, but then would operate independently of the government. They would have to maintain the same financial reserves that private companies are required to keep to handle unexpectedly high claims.

Republicans say a public option would have unfair advantages that would drive private insurers out of business. Critics say co-ops would not be genuine public options for health insurance.

Meanwhile, Sen. Orrin Hatch, R-Utah, said he would return to the bargaining sessions to find a bipartisan solution to a health care problem that has long vexed Washington.

"I'm always ready to go back to the bargaining table," Hatch said. "Heck, I've probably helped pass more bipartisan health care legislation than anybody I know."

That legislation, however, seemed likely to strike end-of-life counseling sessions. Former Alaskan Gov. Sarah Palin has called the session "death panels," a label that has drawn rebuke from her fellow Republicans as well as Democrats.

Even so, Sebelius said the proposal was likely to be dropped from the final bill.

"We wanted to make sure doctors were reimbursed for that very important consultation if family members chose to make it, and instead it's been turned into this scare tactic and probably will be off the table," she said. "And that's not good news for the American public and not good news for family members."

Sebelius spoke on CNN's "State of the Union" and ABC's "This Week." Shelby and Conrad appeared on "Fox News Sunday." Hatch was interviewed on "This Week."
© 2009 CBS Interactive Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.
197 Comments Add a Comment
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tarbaby1315 says:
Dear Readers,
Insurance has been the discussion around America these days. It is believe Government Insurance Plan would bring down the Public Insurance Plan. Public Insurance Company like AIG, CIGNA, Artea, and etc.. Would love the American public to believe that because they stand billion, or I should say hundreds of billions of dollars in income. How many American people does the Insurance Company employ? How many showed up to these so-called town organized by American Congressperson? It does not take a genius to figure out these town meeting are staged by Insurance Company and Congressperson to save face? Do we think Congresspersons are going to bite the hands that line their pockets?
Let me ask you a question, how many times has the Nation of Public Insurance been called upon US Government to bailout their Public Run Insurance Company? Ask anyone who has gone through natural disasters like that of Hurricane Katrina and tornado victims how well Public Insurance Companies pay. In fact, the Public Insurance Company goes crying to US Government for help. The way I look at it is if Public Insurance Company is going to the US Government anyway, why have a Public Insurance System. What does these Public Insurance Company do with all the money they are making because they are not paying any claims that is going to costs them serious money? They will pay any fines because most fines are way less compared to the money they rake in. It also helps when the US Government mandates that every individual must carry insurance.
It is time that Public Insurance Company, Congress, and Lobbyist were put on notice that the American Public is not going to take it anymore. Congress can sit on their hands and tie up bills to keep them from passing, but American Public is wise to Wall Street Scam and US Government bailout, and they have had enough. American is calling Wall Street Company CEO and Congressperson on the take to go to jail that Company Lobbyist be disband from Washington D.C.

David Minor
Decatur, AL
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outwithobama says:
For those of you that want socialism you are in the wrong country. There are many countries out there you can move to. Don't let the door hit you in the a** on your way out.

This country was built on opportunity and needs to stay that way. Yes, some people are more successful and others are not. Maybe who are not didn't try hard enough.

Katie - what's your beef?? Maybe your ratings would increase i you reported the truth instead of the spoon fed BULL.
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endurorob says:
Widget101 August 17, 2009 8:36 AM EDT

There's nothing more selfish than an "I-got-mine-and-I-don't-care-if-you-get-yours" attitude.


Actually there is. It is called "You worked to get what you have while I did nothing so now give me what you have so we can all be equal".
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endurorob says:
the74blaster August 17, 2009 8:22 AM EDT


How can you pervert a public health insurance option as a government take over of the insurance industy? Its called competition!


No it is called a gateway to single payer which is government run health care. Don't be a fool. The whole idea of the "pubic option" is to opave the way for single payer. And single payer is nothing short of gavernment contro whic is nothing short of socialism.
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Widget101 says:
"The modern conservative is engaged in one of man's oldest exercises in moral philosophy; that is, the search for a superior moral justification for selfishness." John Kenneth Galbraith

There's nothing more selfish than an "I-got-mine-and-I-don't-care-if-you-get-yours" attitude.
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endurorob says:
jab232 August 17, 2009 8:01 AM EDT

So, finally, to have come so close on the public option plan is a miracle. I hope we all keep fighting for it. But the best way to fight for it is to elect an overwhelming majority of Senators who support it. Otherwise, it won't happen.



That will require electing a majority that is also in favor of socialism and I can't see that happening anywhere in the near future.
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jab232 says:
The issue is not the public option plan. The issue is the structure of the government and the rules of the Senate. In our government, the Senate gives minority states more power. Each state has two votes, no matter its size. Add to that the Senate rule that it takes 60 votes to stop a filibuster, and you have a situation where, for the Democrats to pass a public option health care plan, they would have to have elected at least seventy senators. Many small-state senators have not and will not support something that might well benefit the majority of people. After all, that majority live in the large states.

So, finally, to have come so close on the public option plan is a miracle. I hope we all keep fighting for it. But the best way to fight for it is to elect an overwhelming majority of Senators who support it. Otherwise, it won't happen.
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Beyond-The-Spectrum says:
It's funny that no one was worried about "runaway spending" when it came to invading a country which wasn't a threat, to find weapons that weren't there, which cost not only billion of dollars but 1,500 American lives (so far). As for a "government-run program," Fed-EX, UPS, Blackwater, & a few others are doing better than the US Postal Service & many local and state police agencies, so private/government competition CAN work. To a 40+ conservative white person, "change" is the scariest word they know--Obama being accused of being a Muslim, Obama not a citizen, Obama a "Socialist" - all that crap springs from this fear of change and of losing their way of life and of losing a sense of power. And I guess they throw the word "Socialist" around because apparently, its the worst thing you can be...worse than even a child murderer or serial killer. Some people will always live in the ideological Dark Ages.

http://beyond-the-political-spectrum.blogspot.com/
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endurorob says:
habu99-2009 August 17, 2009 7:33 AM EDT
The insurance companies are a main part of the healthcare problem. And now Obama wants to let them run things without government intervention in order to satisfy a minority of wingnuts who are fed lies by the Fox Opinion Channel and bussed to town hall screaming matches by front groups for corporate lobbyists? Or to please the angry and adrift Repugnicans who will never agree to anything he does because they are petty and spiteful and don't care about conditions in this country, only about scoring cheap political points?



Actually the cost of health care and the use of emergency rooms as primary care by those without health care are a main part of the health care problem. Insurance is expensive but they are like any other business and are in it for profit. It is the majority that are against the public option becaues they see it for what it is, a gateway to complete government takeover of the health care system.
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the74blaster replies:
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by endurorob August 17, 2009 7:43 AM EDT


Actually the cost of health care and the use of emergency rooms as primary care by those without health care are a main part of the health care problem. Insurance is expensive but they are like any other business and are in it for profit. It is the majority that are against the public option becaues they see it for what it is, a gateway to complete government takeover of the health care system.
+++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++

How can you pervert a public health insurance option as a government take over of the insurance industy? Its called competition!

The post office coexists with Fed Ex and UPS. If offering a public option is a government take over, then why are these companies in existance?

As you state the insurance companies are in business to make a profit. I guess the question we need to ask is it more important to improve the health of their customers or is it more important to make huge profits?

I have heard about insurance companies rejecting ligitimate claims in hopes the customer pays the bill rather than contesting it with the company. This tells me that the highest priority is to make a profit even if it means stiffing the customer.

The people of this country need a public option to force the private for profit companies to improve services. It is not a government takeover as you suggest.

If your statement was true there would be no Federal Express or UPS delivering parcels.
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habu99-2009 says:
The insurance companies are a main part of the healthcare problem. And now Obama wants to let them run things without government intervention in order to satisfy a minority of wingnuts who are fed lies by the Fox Opinion Channel and bussed to town hall screaming matches by front groups for corporate lobbyists? Or to please the angry and adrift Repugnicans who will never agree to anything he does because they are petty and spiteful and don't care about conditions in this country, only about scoring cheap political points?

Please!
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