Democrats may go it alone on government insurance plan

WASHINGTON — Democrats generally are standing behind their position that a health care system overhaul must include a government-sponsored plan that would be available to middle-class workers and their families.

A key Democrat, New York Sen. Chuck Schumer, said this option now seems even more of a necessity in view of unsuccessful behind-the-scenes attempts to get a deal with Republicans on nonprofit co-ops as an alternative to a public plan.

Schumer told The Associated Press Sunday night that those efforts have proved frustrating, saying that he and his Democratic colleagues now may have to go it alone.

The co-ops were seen as perhaps the last hope for compromise on the notion of a public health care option, a contentious issue that threatens any remaining prospects of bipartisan support for President Barack Obama's sweeping plan to remake the health care system.

"I don't think I could say with a straight face that this (co-op proposal) is at all close to a nationwide public option," Schumer, D-N.Y., said Sunday. "Right now, this co-op idea doesn't come close to satisfying anyone who wants a public plan."

The public plan that most Democrats envision would be offered alongside private plans through a new kind of insurance purchasing pool called an exchange. Individuals and small businesses would be able to buy coverage through exchanges, but eventually businesses of any size might be able to join.

Proponents say the option of a public plan in the marketplace would put a brake on costs and check the power of insurers. But Republicans, insurers and many business leaders say a government plan could drive private insurance companies out of business.

"The most important thing for us to make sure is that we do increase coverage to a basic plan for more Americans and the way we're going to do that is starting with where people get most of their health care, and that's their employer," House Minority Whip Eric Cantor, R-Va., said Monday. "We've got to be sure to make it so those employers can keep their health care costs down."

Cantor, appearing on ABC's "Good Morning America," said that "a government plan, no matter what you call it, will increase costs" and limit choices.

Two recent news media polls have found public support for a government plan, even if many people are unsure about its implications. The most recent survey, a New York Times-CBS News poll released Sunday, found that 72 percent supported the idea, including half of those who identified themselves as Republicans.