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Public Option Now Has Legs in Senate

Hostile insurance industry pushes Dems to consider grab-bag of proposals

By Harry Kimball,  Newser Staff

Posted Oct 20, 2009 8:58 AM CDT

(Newser) – The public option, left for dead by the Max Baucus bill that passed the Finance Committee just weeks ago, has a new lease on life in the Senate. Credit goes to a CBO report underwhelmed by that bill's efforts to encourage competition, and a big power play by the insurance industry that backfired. Democrats are considering a raft of possibilities, from the triggered plan favored by GOP Sen. Olympia Snowe to others that would allow states to opt in, or out. “This issue is alive,” Max Baucus tells the Wall Street Journal.

The CBO concluded that the nonprofit health cooperatives outlined in the Baucus bill were “unlikely to establish a significant market presence.” And a broadside from the insurance industry lamenting probable lost profits appears to have angered instead of cowed Democrats. The public option has also ceded its place as the hot button issue to government mandated coverage and attendant penalties.

Senate Majority Leader Harry Reid, flanked by Senate Banking Committee Chairman Christopher Dodd and Senate Finance Committee Chairman Max Baucus.
Senate Majority Leader Harry Reid, flanked by Senate Banking Committee Chairman Christopher Dodd and Senate Finance Committee Chairman Max Baucus.   (AP Photo)
Demonstrators protest in front Blue Cross offices in downtown San Francisco.
Demonstrators protest in front Blue Cross offices in downtown San Francisco.   (AP Photo)
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COMMENTS
Showing 3 of 21 comments
AdaptAndOvercome
Oct 20, 2009 7:23 AM CDT
Well, as of this morning 60% of Americans are for the public option plan...bet a lot of Repubs are freaking out on this one. The more "facts" they find out, the more support it is getting. Finally, reality is checking in.
divetrader
Oct 20, 2009 4:53 AM CDT
If we get either Baucus or Snowe, we are in a blizzard.
JoeQ
Oct 20, 2009 4:51 AM CDT
One thing we middle class folk having going for us here: Rising health care costs are a real budget buster. Twenty years out or so, so much of our GNP will be spent on medical care that we won't be able to print T-bills fast enough to keep up. The health insurance industry and Big Pharma are parasites that will suck the life out of the US if they aren't stopped. Maybe some of the senators finally realize that.

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