Pulling the Plug on the Public Option

Breitbart reports the White House is signaling a willingness to drop the controversial "public option" and looking to move toward a compromise with Republicans:

Facing mounting opposition to the overhaul, administration officials left open the chance for a compromise with Republicans that would include health insurance cooperatives. Such a concession is likely to enrage his liberal supporters but could deliver Obama a much-needed win on a top domestic priority opposed by GOP lawmakers.

Hot Air has the latest from Conrad who confirms the public option will not have votes to pass in the Senate:

“Look, the fact of the matter is there are not the votes in the U.S. Senate for the public option, there never have been,” Conrad said in an interview on “Fox News Sunday with Chris Wallace.”

“So to continue to chase that rabbit is, I think, a wasted effort,” Conrad said.

Hot Air also has video of Sebelius retreating from the public option.

The likely compromise would involve the cooperatives proposed by Kent Conrad I mentioned last Sunday. The cooperative plan outlined in Time Magazine called for:

"the creation of 50 separate cooperatives, one for each state. Each cooperative would be nonprofit, run by a board of directors elected from within the ranks of co-op members. They would essentially act as self-insurers, meaning premiums paid in by members would cover the cost of claims. The theory is that co-ops would be able to offer health insurance at lower costs for individuals and small businesses — who now must pay some of the highest rates for commercial insurance — because they would create larger risk pools. States with smaller populations could join with nearby ones to form regional alliances with larger pools of members.

Republican Richard Shelby is quoted as being open to looking at these cooperatives:

Sen. Richard Shelby, R-Ala., said Obama's team is making a political calculation and embracing the co-op alternative as "a step away from the government takeover of the health care system" that the GOP has pummeled.

"I don't know if it will do everything people want, but we ought to look at it. I think it's a far cry from the original proposals," he said.

Kent Conrad is a key member of the Senate Finance Committee and seated at the grown up table, where the President's plan appears to be taking shape.

While the retreat from the public option may appear a victory, the mere fact the Administration spent much of August promoting it despite evidence it would have always been difficult to pass in the Senate, is an indication the President always preferred a large government plan. Much of the outrage expressed in town halls and reflected in polls made it clear the public was not inclined to see another massive government program created in the process of health care reform. This may be retreat but we can't call it surrender. It is far too early to call this victory and this is no time to become complacent.
UPDATE: American Power declares this win a "skirmish" in the longer battle to victory see warning here.