Proposed deficit remedy: healthcare 'public option' - coalition of Democrats plans to introduce legislation Thursday

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Proposed deficit remedy: the healthcare

As both political parties worry about the growing federal deficit, an unlikely proposal is returning from last year's divisive healthcare debate: the "public option." Creating a major government health insurance program was roundly rejected last year, but 128 House Democrats are pushing to reconsider the idea, contending that it would hold down federal spending.

'Public Option' Lives In The House, With 125 Co-Sponsors

Even in a summer of healthcare fatigue, a coalition of House Democrats plans to introduce legislation Thursday to establish a government-run "public option" that would be available to consumers in the overhaul law's insurance exchanges.

Rep. Lynn Woolsey, D-Calif., a longtime leader in efforts to include a public option in healthcare reform, said her bill currently has 125 co-sponsors and is similar to legislation that was passed by the House Education and Labor Committee during the healthcare debate.

"We've tweaked it so [the public option] fits in the exchanges," said Woolsey.