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'Public option' remains obstacle

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The New York Times

Published: October 15, 2009

WASHINGTON - As the White House and congressional leaders turned in earnest on Wednesday to working out big differences in the five health care bills, perhaps no issue loomed as a greater obstacle than whether to establish a government-run competitor to the insurance industry.

One day after the Senate Finance Committee approved a measure without a "public option," the question on Capitol Hill was how President Barack Obama could reconcile the deep divisions within his party on the issue.

All eyes were on Sen. Olympia Snowe, R-Maine, who called for a "trigger" that would allow a public plan to kick in if competition among health insurance companies fails to bring down costs.

Two senior administration officials, speaking on condition of anonymity, said the White House looked favorably on the Snowe plan.

But liberal Democrats were maneuvering against it Wednesday, arguing that Snowe, the lone Republican to vote in favor of the Finance Committee's bill, was gaining undue influence over the talks.

With Democrats split, an array of compromises are being floated - including the nonprofit cooperatives contained in the Finance Committee bill and the latest idea to capture some Democrats' fancy, leaving the public option to the states.

Obama's health care adviser, Nancy-Ann DeParle, said she was convinced Democrats can "find convergence" without the president.

She and several other officials, including Rahm Emanuel, the chief of staff, and Peter R. Orszag, the budget director, met Wednesday with Senate Majority Leader Harry Reid, D-Nev., to work on how to merge the Senate's two versions of the legislation.

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