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Sebelius: Obama OK with insurance co-ops

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Published: August 16, 2009

WASHINGTON - President Barack Obama's health secretary is suggesting the White House is ready to accept nonprofit insurance cooperatives instead of a government-run public option in a health overhaul plan.

Health and Human Services Secretary Kathleen Sebelius says Obama still believes there should be choice and competition" in the health insurance market - but that a public option is "not the essential element."

Obama has been pressing for the government to run a health insurance organization to help cover the nation's nearly 50 million uninsured. But he had not seen a not-for-profit co-op as sufficient to offer consumers choice and competition that would bring down the costs of private insurance.

Sebelius spoke on CNN's "State of the Union."

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