It appears the Senate is offering some odd compromise form of the public option. I really want to see what the CBO and Ezra Klein and others think of this, it's rather unique.
Public Option Compromise
As the Senate convened a rare Saturday session, about a dozen Democratic senators continued intensive talks on the public option, with the goal of agreeing on a framework that can garner 60 votes.
There appeared to be serious consideration of a new proposal on the table: a national health plan similar to the Federal Employee Health Benefits Plan, which provides insurance to members of Congress and federal workers. It would be administered by the Office of Personnel Management, which oversees the federal plan, and all of the insurance options would be not-for-profit.
"So in other words, what we got is a national plan that the progressives would like, but that’s where that middle is, we’re trying to find that middle," said Sen. Tom Harkin (D-Iowa).
"There’s sort of a kind of a general agreement on where we’re headed on this thing," Harkin added.
Sen. Blanche Lincoln (D-Ark.), a public option opponent who faces a tough reelection next year, said she was encouraged by the proposal.
"It’s one of the things that’s been talked about, and I think it bodes well for being able to do what we want to do, which is to create greater choice and options in the marketplace but also have a downward pressure on premiums on cost ," Lincoln said. "Those are the dual objectives we've got."
For what was expected to be a quiet weekend session, Saturday turned into a significant day for senators seeking a compromise on the public option. Moderate and liberal Democrats huddled in the morning, met separately in the afternoon, reconvened around 4 p.m., and left for the evening agreeing to resume talks Sunday afternoon. Senators said they expected to negotiate into the night Sunday.
I will add more opinions as they come in or if this is some sort of trial balloon. No indications of either so far.
UPDATE: Huffingtonpost has a little bit more information,Snowe and the Dems
Following the meeting, Pryor declined to get too specific, but did say that a leading proposal involves increasing the ability of the Office of Personnel Management -- which oversees the federal employee health plans -- to negotiate on behalf of individuals and small businesses. Pryor told a HuffPost and an AP reporter that it was unclear how exactly it would be set up, but that it would take the place of the public option managed by the Health and Human Services Secretary.
Lincoln, also interviewed after the meeting, said that the OPM plan would not need additional seed money and would be similar to a proposal she introduced earlier this year called the SHOP Act. She said that she continues to oppose a "government-run plan," but that this proposal would meet the twin goals of keeping down costs and increasing competition. Snowe and Majority Whip Dick Durbin (D-Ill.) are cosponsors of the SHOP Act.
So, Snowe is not part of this discussion, but this appears to be something that would take the place of a public plan? It's akin to the SHOP ACT proposed by Durbin and Snowe, but not exactly sure what kinda place it will take.
UPDATE II: Anyone watching the Senate this morning? Good God. I've never seen so much bloviating in my life. There doesn't appear to be any dems on the floor (I believe they are in their meeting with Pres. Obama), but it's just a long rant by McCain, Barrasso, Ensign and Gregg. This is fillibustering.
UPDATE III: Per Andrea Mitchell, the new strategy to get 60 votes appears to go for Olympia Snowe and Lieberman and ignore Ben Nelson. I guess they thought Collins was too out of reach, but Lieberman seems like a tough nut to crack.