The chairman of the House Ways and Means Committee said reform to the nation’s health care system will not pass his chamber of Congress without a government-financed insurance plan.

Charles Rangel

Rep. Charles Rangel (D-N.Y.) called a public plan essential to compete with private insurers and hold down medical costs, Bloomberg reported, adding that any Senate proposal that doesn’t contain such a plan is “totally unacceptable.”

The idea of a public plan has received increased support from the Obama Administration, but is not a popular option to some legislators and many of the nation’s insurers.

Rangel also said he is uneasy about a proposal by Sen. Max Baucus (D-Mont.) and others that would tax employer-provided health benefits, indicating “I really don’t think it’s a good law to do that,” according to Bloomberg.

Taxing all employee health benefits would have produced $226 billion in revenue for the U.S. government last year, according to an assessment from Congress’ Joint Committee on Taxation, cited in the report.