Reid Chooses “Opt-Out” Public Option, Asks CBO for Price Tag

ABC’s Z. Byron Wolf reports:

Senate Majority Leader Harry Reid announced a Capitol Hill press conference that he has decided to include a government-run public health insurance option in a final health reform bill to be considered next month on the Senate floor.

ABC News' Jon Karl was the first to report Reid's decision last week.

The public option as envisioned by Reid would go like this: states would be allowed to opt out of the national public plan until 2014, he told reporters. The proposal, which allies Reid with the more liberal side of his caucus and is sure to frustrate moderate Democrats, is en route to the nonpartisan Congressional Budget Office, which will be tasked with giving it an official price tag.

"While the public option is not a silver bullet, I believe it's an important way to ensure competition and to level the playing field for patients with the insurance industry," Reid said.

Reid was unable to promise that he could muster the 60 votes that will be needed to pass a bill on the Senate floor, but he said that after CBO scores the bill and Democrats are able to consider it, all 60 will vote on a procedural motion to bring the bill to Senate floor for consideration.

"I believe that — I believe that we will be — as soon as we get the bill back from CBO and people have a chance to look at it, which we'll have ample time to do that, I believe we clearly will have the support of my caucus to move to this bill and start legislating," he said.

By sending his bill to CBO, Reid signals that he is done merging portions of the HELP Committee, which passed a bill in July, and the Finance Committee, which took until this month to pass a more centrist proposal crafted by Sen. Max Baucus of Montana.

There are many issues beyond the public option – specific approaches to mandates for employer and individual coverage and general affordability – that separate the two bills. But all Reid discussed today was the public option.

Republicans continued to hammer Reid today over that lack of transparency at this stage of the health reform process.

Without clear support yet from all Democrats, Reid would seem to be abandoning his search for Republican votes. One Republican in Congress – House or Senate – , Sen. Olympia Snowe, has voted with for a comprehensive health reform plan with Democrats in Congressional Committee. Snowe favors a so-called "trigger option" that would create a government run plan to be implemented in states where the market does not provide affordable insurance plans.Snowe said in a statement that she is "deeply disappointed with the Majority Leader's decision to include a public option as the focus of the legislation."

She argued that her trigger proposal "could have been the road toward achieving a broader bipartisan consensus in the Senate."But Reid said today he would not ask CBO for an official score of the trigger plan. And he wouldn't request a score of a proposal to let states opt in to the new government plan either. He said he was sorry that the possibility of a public option "frightened her.""I spoke to Olympia on Friday," Reid said. "I've talked to her on a number of occasions.  And at this stage she does not like a public option of any kind.And so we'll have to move forward on this, and there come a time, I hope, where she sees the wisdom of supporting a health care bill after having had an opportunity, her and others, to offer amendments."Despite his move away from seeking Republican votes, Reid criticized Republicans for not working with Democrats."In this modern Senate Republicans, who, in my opinion, don't represent the thought process of Republicans throughout the country, haven't been willing to help us on anything," he said.Of the internal Democratic politicking that will have to occur before there are 60 votes for his proposal, Reid said, "We have 60 people in the caucus.  It's a comfort level is kind of — we all hug together and see where we come out."Reid's move drew immediate praise from more liberal Democrats.Sen. Jay Rockefeller of West Virginia had made clear he may not support a bill without a strong public option even though he voted in the Finance Committee to report out a bill that lacked one."I am gratified to see the public option debate is alive and well in the Senate," said Rockefeller in a paper statement today. "The American people have asked for real solutions that protect their families and their economic security – a strong public option would do just that. An opt-out clause would protect the public option, and would help secure the necessary votes to pass health care reform, without compromising on the type of coverage or level of affordability.  This will still save money and provide a real public option for people, and I am glad Leader Reid is moving forward with this strong health care reform agenda."

Baucus, who courted Snowe's vote for months in order to make the Finance Committee bill bipartisan and had voted against a public option in committee even though he has said he personally supports one, said today he will support whatever bill will get 60 votes.

"I included a public option in the health reform blueprint I released nearly one year ago, and continue to support any provision, including a public option, that will ensure choice and competition and get the 60 votes needed to pass the Senate," Baucus said in a paper statement today. "Success should be our threshold and I am going to fight hard for the 60 votes we need to meet that goal this year."