Instead, the government would essentially contract with a nonprofit insurer to provide a nationwide plan that would serve as the public option, according to officials briefed on the discussions. Combined with a vote earlier in the day that rejected efforts to tighten restrictions on public money for abortion, the compromise kept the Senate moving toward Reid's goal of voting on the healthcare bill before Christmas.
Reid's office issued a statement saying he was "confident" that he could sell the plan to the Democratic caucus. "This has been a long journey," he said. "We have confronted many hurdles, and tonight I believe we have overcome yet another one."
One of the healthcare overhaul's main goals is to reduce the number of uninsured in the nation, providing coverage to more than 30 million additional Americans.
Low- and moderate-income people who selected the nonprofit plan in a new insurance exchange would qualify for subsidies, just as they would if they selected a commercial plan.
The government would oversee the nonprofit plan, ensuring that it met basic standards for quality and affordability. That provision was designed to satisfy demands from many on the left that the government provide consumers with an alternative to coverage offered by for-profit insurers.
The compromise would also create a mechanism for triggering the creation of a more traditional government-run plan like the one now in the bill, if the nonprofit option does not materialize.