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Angie Drobnic Holan
By Angie Drobnic Holan January 8, 2010
Back to Create a public option health plan for a new National Health Insurance Exchange.

Fate of public option looks dubious

As Congress moves toward final negotiations for a health care bill, the fate of the public option is looking more dubious.

President Barack Obama downplayed the importance of a public option in a final health care bill, saying he "didn't campaign on a public option," a statement we rated Barely True.

Though the House of Representatives approved a bill with a public option, the Senate rejected the proposals. Speaker of the House Nancy Pelosi, when asked by reporters about the issue, seemed to acknowledge that a public option might not make the final bill. The goal of the public option, she said, was "to hold the insurance companies accountable and to increase competition. There are other ways to do that, and we look forward to having those discussions as we reconcile the bills."

The public option was considered something of an insurer of last resort. People who have to buy their own insurance, without the help of an employer, would be allowed to select a public option on a proposed new health insurance exchange. The public option would be run by the government and offer basic coverage. Advocates said the public option would keep private insurers honest by competing with them so they couldn't charge unfair rates for the basics. Opponents said it was too much government involvement in the health care system, among other criticism.

Because Obama has publicly downplayed the public option and Pelosi has said congressional leadership is looking at other options, we rate this promise Stalled.

Our Sources