White House Backs Away from Gov't-Run Insurance

Andrew Zajac of The LA Times reports that the Obama administration signaled Sunday that it was on the verge of abandoning a government-run insurance option in its healthcare overhaul -- a bow to political reality and a big win for insurers.

Health and Human Services Secretary Kathleen Sebelius told CNN's "State of the Union" that a public option is "not the essential element" of healthcare overhaul, but that lowering insurance costs and preventing insurers from dumping customers for preexisting conditions or for exceeding coverage caps are must-haves.

Should the Obama Administration stay out of the healthcare insurance business, or should privatized insurance be the pathway towards better healthcare?

White House backs off public healthcare option