Congressional leaders appear to have struck on a way to ensure passage of health care reform and the pacification of those in favor and opposed to a government-run health plan: Let states opt out.

Harry Reid

Meanwhile, Senate Democrats say they are closer to including the public option their merged bill, even though the bill passed by the Senate Finance Committee, authored by Sen. Max Baucus (D-Mont.), did not include the public option, according to The Huffington Post.

House Speaker Nancy Pelosi (D-Calif.) has said no bill will obtain House approval without the public option and President Barack Obama has said he wants it included, saying it will prevent insurers from taking advantage of the potential increase in business caused by an individual mandate for coverage.

As the possibility of a public option increases, the concerns of the insurance industry grow. Industry leaders say a public option would unfairly encourage people to choose a government-run plan, which would be less costly because it would have better bargaining power for contracts with doctors and other health care providers.

Senate Majority Leader Harry Reid (D-Nev.) wants to include the opt-out provision in the bill the full Senate approves, saying he would then push for its approval when the Senate and House bills are joined and voted on, reports indicate.

Yet Olympia Snowe (R-Me.), the only Republican to vote for Baucus’ committee bill, says she won’t support the opt-out plan, saying she would oppose any bill that includes a public option.

Congressional leaders say they hope to have a final bill prepared by Thanksgiving, giving leaders just more than a month to reach concensus.