Obama Praises Public-Option Compromise

Senate Democrats tentatively agreed Tueday night to drop the government-run public-option from the health care bill.

In its place, officials said Democrats had tentatively settled on a private insurance arrangement to be supervised by the federal agency that oversees the system through which lawmakers purchase coverage, with the possibility of greater government involvement if needed to ensure consumers of sufficient choices in coverage.

Surprisingly, Obama has applauded Senate Democrats for yielding the public-option. He says that it will help to attract wider support. The deal worked out last night will include Medicare expansion and the creation of privately administered national insurance policies.

Harry Reid now must make sure that the compromise attracts sufficient support among fence-sitters. Joe Lieberman, who has been one of the harshest critics of the public plan, said after the deal that he was "encouraged" by the bill's progress.