Amid Health Reform Debate, Prospects for Public Plan Explored

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• JIM LEHRER:

  The wrangling over health care reform resumed in earnest today in Congress. There was talk of possible progress on the Senate side, while House Democrats labored again to round up votes on their side.

  NewsHour health correspondent Betty Ann Bowser has our lead story report.

• BETTY ANN BOWSER, NewsHour Correspondent:

  The focus in the Senate remained on a bipartisan group of Finance Committee members who've worked in secret for weeks.

  It was widely reported they're nearing a compromise that would discard key White House priorities: a government-run public option plan to compete with private insurance companies; and a mandate for large businesses to provide coverage for their employees.

  The senators were also said to be talking about including an independent government commission that would have authority to set Medicare reimbursement rates and was considering taxes on so-called high-cost "Cadillac" health insurance plans.

  Committee Chairman Max Baucus addressed that point as he headed into another round of talks.

• SEN. MAX BAUCUS, D-Mont.:

  Senators like that, probably because it raises some revenue, but, second, it does bend the growth curve.

• BETTY ANN BOWSER:

  Meanwhile, inside the Capitol, the Democratic caucus met to brief members on the status of negotiations. And at this point, there does not appear to be agreement.

  One House Democrat opposing the bill, Michigan's Bart Stupak, said the logjam remains.

• REP. BART STUPAK, D-Mich.:

  We have no bill.

• BETTY ANN BOWSER:

  But the number-four Democrat in the house, John Larson of Connecticut, said there's reason for hope.

• REP. JOHN LARSON, D-Conn.:

  I remain confident that we'll come to agreement and then be out about the business of making sure that we're able to sell this plan, as well.

• BETTY ANN BOWSER:

  The dissension within Democratic ranks made it less and less likely the House will pass health care reform before the August recess. The Senate has already given up on that goal.

  House Republicans argued today the impasse bolsters their claim that the Democrats' plan will fail because it costs too much.

• REP. MIKE PENCE, R-Ind.:

  House Republicans and a handful of Democrats are on the verge of a historic victory for American taxpayers and for the American health care economy.

• BETTY ANN BOWSER:

  President Obama continued making his case today at an AARP town hall meeting in Washington. He said again health care reform is crucial to Medicare's survival.

• U.S. PRESIDENT BARACK OBAMA:

  As costs balloon, so does Medicare's budget. And unless we act within a decade, within a decade, the Medicare trust fund will be in the red.

  Now, I want to be clear: I don't want to do anything that will stop you from getting the care you need, and I won't. But you know and I know that right now we spend a lot of money in our health care system that doesn't do a thing to improve people's health, and that has to stop.

• BETTY ANN BOWSER:

  The president continues his health care campaign with two more town halls, tomorrow in Virginia and North Carolina.