Health News

Obama notes 'critical progress' after health care compromise (Roundup)

Dec 9, 2009, 18:56 GMT

US President Barack Obama speaks on the economy in the Diplomatic Reception room of the White House in Washington, DC, USA, 09 December 2009. EPA/Olivier Douliery / POOL

Washington - US President Barack Obama on Wednesday backed a compromise between his fellow Democratic lawmakers that would allow passage of major health care reform legislation, his top domestic priority.

Majority Leader Harry Reid, the Senate's top Democrat, announced late Tuesday that his centre-left party had agreed to soften the controversial 'public option,' a government-run insurance plan at the heart of the long-running dispute over health reform.

The compromise creates a series of new national insurance policies administered by private companies but negotiated by a government agency, US media reported. A more robust government-run option would kick in later if the compromise did not adequately reduce costs.

'The Senate made critical progress last night with a creative new framework that I believe will help pave the way for final passage and a historic achievement on behalf of the American people,' Obama said, shortly after a private meeting Wednesday with congressional leaders.

The public option has been fiercely opposed by Republicans and some moderate Democrats, who fear it will extend the government's reach too far into the largely private health sector. Supporters argue it is the only way to reduce costs in the world's most expensive health care system.

Tuesday's compromise was hammered out between a group of Democratic senators from the centre and left of the party. Democrats have largely given up hope of attracting opposition Republicans to their reform effort, meaning passage of the bill will require the support of all 60 Democrats in the Senate.

Democrats are rushing to get the legislation passed through the Senate before the end of the year. The House of Representatives passed its own version in November and the two bills would still have to be reconciled before being sent to Obama's desk for signature.

'This has been a long journey. We have confronted many hurdles, and tonight I believe we have overcome yet another one,' Reid said Tuesday night.

Earlier Tuesday, the Senate voted 54-45 to drop a controversial amendment to the legislation that would have severely restricted federal funding of abortion, another stumbling block. The House bill does include an amendment that restricts federal funding.