Senate committee drops plan for government insurance

Senate committee drops plan for government insurance Washington  - A US Senate committee voted Tuesday to drop plans for creating a government-run health insurance programme, fearing the provision would result in the defeat of the entire bill to reform medical care.

Three Democrats joined 10 Republicans in voting against two amendments to the bill that would have added the so-called "public option," resulted in a 13-10 defeat of what was once viewed as a key part of President Barack Obama's plan to revamp the health care system.

The Democratic chairman of the Senate Finance Committee, Max Baucus, was among those who sided with the Republicans. He said he would prefer to have included the public option, but that Republican opposition to it had the potential to block the entire bill.

"I fear if this provision is in the bill, it will hold back meaningful reform this year," Baucus said, according to CNN.

Congress is taking up several proposals for health care reform, but Republicans and Democrats have been deeply divided about how to go about it. Republicans argued that the public option would drive insurance companies out of business, while most Democrats believe it is essential to provide more accessible care to people who cannot afford private insurance.

Obama has listed health care reform as a top priority. The White House has played down what appeared to be the imminent defeat of the public option, saying it was only one aspect of the president's plans. (dpa)