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Sen.Olympia Snowe told reporters that she was inclined to oppose a proposal to expand Medicare and Medicaid elgibility, two components that are centrai to Democratic efforts to forge a deal on the "public option," TPM reports.

If Senate Majority Leader Harry Reid cannot win over Snowe, that means he'll have secure the votes of all 60 Democrats. The problem is that Sen. Ben Nelson has said he would support a filibuster of any bill that did not include abortion language along the lines of the Stupak amendment that passed the House. Nelson has offered a similar measure in the Senate, but it is expected to be defeated later this afternoon.

Also, it remains unclear how Sen. Joe Lieberman, who said he would block any bill with a government-run plan, would feel about the new compromise being worked out.

Democratic Sen. Kent Conrad has also criticized plans to expand Medicare.