Matheson aims to cut public health option

Rep. Jim Matheson, D-Utah, will ask House leaders Friday to allow a vote that could strip a public insurance option out of the Democrat's health-care bill.

Matheson, chairman of the moderate "Blue Dog" Democratic caucus in the House, on Thursday released a list of five amendments that he plans to ask the Rules Committee to allow during an expected Saturday debate in the House on the reform bill. The most prominent would strip the hotly contested "public option" out of the bill.

"I agree with my colleagues that consumers deserve more choice and competition within the insurance marketplace. However, I disagree that a government-run-insurance option is the only way to achieve this shared goal," Matheson said in a statement prepared for the committee.

Instead of a public option, "I have filed an amendment to create state-based cooperatives — similar to the provisions included in the Senate Finance Committee — as a means of providing families and individuals with another health-insurance option," he said.

That amendment, and the others, may face an uphill battle. House Speaker Nancy Pelosi has said that Democrats may reject all amendments to the bill, except one that would restrict federal funds going to abortions.

Among other amendments that Matheson said he intends to seek are:

Creating state-based insurance exchanges, instead of a national one. He said that would "offer flexibility and responsiveness to the health-care demographic differences of each state."

Capping non-economic damages in medical malpractice lawsuits to $250,000. He said the Congressional Budget Office has said that could save $54 billion over 10 years.

Allowing health-savings accounts in insurance exchanges.

Allowing loan forgiveness for new pediatricians, designed to address a shortage of such doctors. (Matheson's wife is a pediatrician.)

Matheson voted against an early version of the Democratic health-reform bill in committee and has been pushing to tweak it with similar changes for months.

e-mail: lee@desnews.com