UPDATE 1-Obama renews support for US public insurance plan

Tue Jul 7, 2009 9:41pm BST
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(For a take a look on U.S. healthcare reform, click on [ID:nN07323916])

* Obama renews support for public insurance plan

* Emanuel comments open door to deal on public plan

* Conrad says tax on employer health benefits discussed (Updates shares, adds Conrad comment)

By John Whitesides

WASHINGTON, July 7 (Reuters) - U.S. President Barack Obama renewed his support for a government-run health insurance plan on Tuesday after a top aide indicated the White House might be willing to back a healthcare overhaul that did not include the option.

In a statement released while traveling in Russia, Obama strongly endorsed the idea of a public plan and said it was one of the best ways to bring down costs and "force the insurance companies to compete and keep them honest."

The option, supported by many Democrats, has drawn sharp opposition from Republicans in Congress, who say it could hurt insurance companies and displace the traditional employer-based insurance model.

White House Chief of Staff Rahm Emanuel was quoted in the Wall Street Journal on Tuesday as saying the administration wanted to create competition for insurers, but the mechanism was negotiable.  Continued...

 
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