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The Associated Press is reporting that Senate Democrats have reached a tentative deal that would drop the so-called public option.

Although they have not yet announced details, reports in recent days have centered on a pact that would have the entity that runs the federal employee health care system oversee the creation of privately administered non-profit plans that would be offered on the new government exchanges. In return for giving up the public option, liberals would be rewarded with a plan to expand Medicare to those age 55 and over, and to expand Medicaid eligibility to 150 percent of the federal poverty level.

The new proposal would have to be evaluated by the Congressional Budget Office.

UPDATE: Brian Beutler reports that the deal still leaves open the possibility of a "triggered" public option, and that the Medicare expansion would be begin in 2011. While there would be no subsidies for the first three years, after 2014, Medicare would be offered on the exchanges to those over 55, who would be able to use the subsidies already created by the bill to pay for it. And, according to Beutler, Medicaid would not be expanded to 150 percent of the federal poverty level.

View all comments (13) | Leave a comment

Liberal Reader| 12.8.09 @ 10:00PM

Washington Post is reporting differently on this.

Hey, wait a minute. I thought they were both a part of the same liberal conspiracy ....

Yosemeti Sam| 12.8.09 @ 11:45PM

Hocus-Pocus!

" ... In return for giving up the public option, liberals would be rewarded with a plan to expand Medicare to those age 55 and over, and to expand Medicaid eligibility to 150 percent of the federal poverty level...."

LOL.

Cut 500 billion from Medicare - and more are
welcome to the residue of coverage.

LOL.

Liberal Reader| 12.9.09 @ 12:00AM

Yosemite

Don't write "LOL." It makes you sound like a jackass.

Yosemeti Sam| 12.9.09 @ 12:08AM

I will deign to respond to a humorless individual -
Liberal Reader.

The Archie Bunker Bronx cheer - aka He Haw !

martin j smith| 12.9.09 @ 7:58AM

YS: Don't expend too much on LR --LR is more predictable that the weather.

Dave B| 12.9.09 @ 1:17AM

This is a set-up. Don't be fooled. All the Democrats that are on record for voting against public options, abortion, and so on is cover only. It will be passed with the amendments, then sent to committee and re-done. They don't have to vote for it then because all that is needed is 51 votes. We're screwed.

Yosemeti Sam| 12.9.09 @ 1:27AM

Footnote:

Consider the magnitude of the Democrat Party
undertaking - über alles! Translation - over the
American citizenry.

Taken in polemical context, the Democrat party - led by a half-black Tarzan swinging in the leftist
jungle of ideology beating his chest -is led by the nose of special tribal interests; thus exhibiting his transfigured Medusan mediocrity sense of governance. Gross!

LOL!

i.e. Derisive LOL!

Sam| 12.9.09 @ 2:00AM

It's about time the Democrats came around to understand how the public option will be the end of their political careers, never mind a terrible step for this country.

They know that they cannot ram their health care down our throats and perhaps they might (with a strong emphasis on might) start looking at real solutions.

And seriously everyone, stop whining about the Medicare expansion. The major threat is the existence of this new public option they originally proposed. We should be grateful that it has been averted- that is the most important thing.

Roy| 12.9.09 @ 8:41AM

This IS a huge welfare option in itself - lower the age to 55 and you're covering(more or less) another 6th of the population right there, huge numbers of which were previously paying for their own coverage.

martin j smith| 12.9.09 @ 7:55AM

There are too many holes in this swiss cheese.

JP| 12.9.09 @ 8:01AM

Regardless of Reid's smoke and mirrors, tthe question remains: Who is going to pay for all of this? Medicare as it is currently configured will go into the red in 7 years. By lowering the age to 55, the Senate is forcing the issue. It will go broke in under 3 years. The Senate's answer is quite simple: it will force both individuals and businesses to pick up the tab. And since the Senate is lowering the Medicare age requirements it cannot raid the $500 billion in Medicare funds.

In a recession, this is quite absurd. If the Senate is determined to put the US into a very deep recession, this is a good way to start.

Portable eye wash| 4.12.11 @ 6:08AM

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More Blog Posts by Philip Klein

http://spectator.org/blog/2009/12/08/ap-dems-drop-public-option-as

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