Nelson: Public option shelved

The idea to allow the federal government to compete with private insurance companies via a so-called “public option” has been “shelved” in Congress, U.S. Sen. Ben Nelson said Friday.

It doesn't have enough votes, he said.

“For the moment, the public option is shelved,” said Nelson, who gave an update on health-care reform to a group of Nebraska doctors in Omaha.

Between 250 and 300 doctors gathered for a two-day convention of the Nebraska Medical Association in downtown Omaha. The national health-care debate was at the top of the doctors' agenda.

Nelson and Nebraska Gov. Dave Heineman spoke at the conference.

Heineman warned that a health care proposal wending its way through the Senate Finance Committee with Democratic support could prove expensive to states. A Republican, Heineman said the bill includes “millions” in unfunded mandates that would require Nebraska to either raise taxes or slash its budget.

“We'll only have two choices. You're going to get higher taxes or we're going to cut the budget,” Heineman said. “Plain and simple.”

Nelson, who is considered a pivotal vote in the Senate, said he would not support any bill until it was in its final form and he knew all of its particulars.

The legislation that appears to be coming out of the Senate Finance Committee with the backing of Sen. Max Baucus, D-Mont., has yet to be finalized. It also will likely be amended once it hits the Senate floor, said Nelson.

Republicans generally oppose the Baucus bill, arguing that it will cut benefits for seniors and raise taxes. President Barack Obama hailed the bill as “another milestone in our effort to pass health insurance reform,” which he said will “offer security to those who have coverage and affordable insurance to those who don't.”

Nelson said he would reserve judgment until he can read the final product.

The Baucus legislation does not include a public option. Rather, it would allow nonprofit cooperatives to fill that role. A cooperative would have the same coverage requirements as a private insurance company.

Nelson said the cooperative idea is something he could support, although he made no commitment. Nelson's opposition to the public option was greeted warmly by many of the doctors in the room. Several said they questioned how the government could propose running a health care program, when it couldn't adequately fund Medicare, its current health care program for senior citizens.

“The government has not been financially responsible in handling its obligations to date. We need more competition, and the government option would only eliminate competition,” said Britt Thedinger, an Omaha ear doctor.

One doctor, however, did support the public option.

Dr. Victoria Maclin tried to persuade Nelson that a public option was needed to help cover the uninsured and the underinsured. “It's going to provide access to those people who can't afford insurance,” said Maclin, a fertility specialist in Omaha.

Nelson argued that a public option would be the beginning of the end of private insurance, as more and more people migrated to the cheaper government insurance plan.

“It wouldn't be competitive. It would be undercutting (private insurance),” Nelson said.

Contact the writer:

444-1309, robynn.tysver@owh.com

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