December 10th, 2009

Reports the Wall Street Journal:

President Barack Obama on Wednesday endorsed a Senate Democratic compromise that backed away from a big government-run health plan, calling the idea a “creative framework” that could propel a health bill to passage.

Republicans condemned the compromise as an act of desperation. But the deal received cautiously favorable comments from Democratic senators who remained on the fence, as well from some House Democrats, raising hopes that Senate leaders may be near locking up the 60 votes needed for passage. “We’re moving toward that,” said Senate Democratic Whip Richard Durbin of Illinois. “But, believe me, there are legitimate and serious questions being raised.”

A group of senior Democrats, including both moderates and liberals, reached a deal Tuesday night to open Medicare to people ages 55 to 64, allowing them to buy into the program that was originally created to provide health insurance to the elderly.

In addition to the Medicare expansion, the Democratic senators agreed to empower the government’s Office of Personnel Management to put in place a new low-cost national health plan, akin to the plans offered to federal employees and members of Congress. The new national plan would be run by nonprofit entities set up by the private sector, and would be available to the public on the new insurance exchanges to be created under the bill.

Left on the cutting-room floor was a provision coveted by many liberals that would have had the government directly run a new health-insurance plan. Senate Majority Leader Harry Reid (D., Nev.) included the “public option” in the bill he originally submitted to the Senate floor, but backed away after several key senators called it a deal-killer.

Speaking at the White House, Mr. Obama said senators had “made critical progress” with a compromise that would “help pave the way for final passage.” The president added, “I support this effort, especially since it’s aimed at increasing choice and competition and lowering cost.”

Read more at the WSJ.