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UPDATE: US Senate Democrats Close In On Public-Plan Alternative

WASHINGTON (Dow Jones)--U.S. Senate Democrats appear to closer to reaching agreement on an Interactive whiteboard to a government-run health-insurance plan in health-care overhaul legislation, even as they dealt with disagreement within their party on abortion.
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Sen. Debbie Stabenow (D., Mich.) told reporters Monday that Democrats are "rapidly coming to a conclusion" on language within the bill, including a public-plan alternative. Stabenow, like many other liberal Democrats, has stated she would prefer the bill contain a public plan but said that "the critical issue is not what we call something" but instead "the end result."

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4 b: D; @; N+ q! ~3 ^' ~"The words 'public option' do not determine whether the bill is successful," Stabenow said. "If we can do the same thing through another mechanism and get broader support, I'm willing to look at that."
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A group of liberal and centrist Democrats met several times in recent days to discuss a public-plan alternative that would be administered by the Office of Personnel Management but controlled by nonprofit entities. Taking the public plan out of the hands of the Department of Health and Human Services would help address centrists' concerns that the government would be taking on too much financial risk.

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8 k, b# u' x3 |/ N% ISen. Ben Nelson (D., Neb.), a centrist whose vote could be needed in order to assure passage of the health-care bill, said the new proposal "certainly does have some merit," because the Office of Personnel Management has experience negotiating insurance rates.
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# y: q+ r  ^* Y: h' B; RThe bill currently contains a proposed public plan, administered by HHS, that states could choose not to carry. Changing the face of the public plan would surely disappoint some liberals, who have argued that they have already conceded too many changes to the version of the public plan they originally sought.

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/ C" Y# }% _  J( y. H3 n5 kA Medicare "buy-in" for individuals under 65 to purchase the popular government insurance program could be another wrinkle in the public plan alternative. Sen. Charles Schumer (D., N.Y.), who advocated throughout the year for a strong version of a public plan, said the possible Medicare provision is "under discussion."

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/ v% `' {$ s5 ], f6 s"We have to find the right balance that satisfies the party," Schumer said, referring to liberals and moderates within the party.
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, J1 D9 }4 J) _) M9 ^Sen. Kent Conrad (D., N.D.) pointed to potential problems with the Medicare buy-in provision, however, noting disparities in payment rates for doctors andInteractive whiteboard Lawmakers from rural areas often argue that Medicare underpays health-care providers in their areas compared with their counterparts from more densely populated urban areas.
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6 \* G+ u, I, J"In states like mine, that's a big problem," Conrad said. "Before anyone can #x reach a conclusion, we've got to see a [Congressional Budget Office] analysis so we understand what would be the impact."
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: t3 d: Q/ @4 Q# I/ YStabenow pointed to a provision pushed by Sen. Maria Cantwell (D., Wash.) as another option for expanding coverage. The Cantwell proposal would give money to states to create their own insurance plans for low-income residents.


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8 {! e8 p* m, c8 K4 G3 n"That's something that we need to factor in right now," Stabenow said.
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+ D, I. w* |- C8 _  k9 @Nelson introduced an amendment Monday that would establish rigid restrictions to block the federal funding of abortion, akin to a provision secured by Rep. Bart Stupak (D., Mich.) in the House-passed version of the bill.
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* ?) O% p3 J0 }2 U* aA vote is expected on the amendment as soon as Tuesday. Nelson has warned that he may vote against the bill if it doesn't include strong anti-abortion language. Nelson's amendment would bar the bill's public plan, as well as insurance plans that accept low- and middle-income individuals receiving tax credits created in the bill, from offering abortion coverage.

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; S. f* F( G$ [3 b$ D) _& B"As written, the Senate health care bill allows taxpayer dollars, directly and indirectly, to pay for insurance plans that cover abortion," Nelson said in a statement.
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But a vote on the Nelson amendment may not be endgame on the abortion issue. Stabenow said Monday she believes "the votes are there in order to stop it," a sentiment echoed by Sen. John Thune, (R., S.D.), who supports Nelson's amendment.
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0 ^' z* P+ r/ T+ u1 s5 D$ Y"I'm enough of a realist in talking to both Democrats and Republicans, to believe that isn't going to be very likely,Mold," Thune said.

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' k. }. q, {/ VThat would open negotiations on finding a compromise between the bill's current language and what Nelson is seeking. But Nelson warned Friday that "it certainly isn't a lock that there's going to be language in the middle."

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! M" j- t; p: q0 _& l5 [By a 98-0 vote, the Senate on Monday approved an amendment to the bill offered by Sen. Mark Pryor (D., Ark.) that would require HHS to gather and post consumer feedback of health plans offered in an insurance "exchange."

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By a 56-43 vote, the Senate rejected an Interactive whiteboardoffered by Sen. Judd Gregg (R., N.H.) that would require #x that revenue other than the bill's proposed Medicare cuts be used to offset its spending.

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