WASHINGTON — Underscoring the divisions within their party, Democrats on the Senate Finance Committee on Tuesday split over a key issue in the healthcare debate as centrists teamed with Republicans to reject creation of a "public option" for medical insurance.
The committee voted 15 to 8 against establishing a public program, after a sometimes emotional debate that stretched over half a day, revealed tensions between liberal and conservative Democrats and laid bare the chasm between the political parties over how to repair the nation's troubled healthcare system.
It was the biggest setback to date for liberal Democrats, but did not kill the possibility of a public option being included in final legislation. Liberals argue that such a plan is needed to increase competition among insurance companies, rein in costs and guarantee affordable coverage for all Americans.
Backing an amendment by Sen. John D. Rockefeller IV (D-W.Va.), liberal lawmakers were rebuffed by five centrist Democrats, some of whom argued that such a plan would bankrupt hospitals in rural areas, while others expressed concern that it would hurt the private insurance industry that is important to their communities -- an industry that also contributes to their campaign treasuries.
All 10 of the panel's Republicans voted no.
The committee also rejected, 13 to 10, a revised public plan amendment by Sen. Charles E. Schumer (D-N.Y.) that was designed to address concerns that a government-run program would have an unfair competitive advantage over private companies. That narrower margin indicated there was room within the Democratic Party to seek compromise on the issue.
"This vote will be a good test so the American people know there is significant support in this committee," Schumer said. "This is not the first word on the public insurance option, and it won't be the last."
The issue surely will be revisited when the bill goes to the Senate floor and to a conference committee with the House, where support for a public option is very strong.
For now, Senate Finance Committee Chairman Max Baucus (D-Mont.) said that a bill with the public option would not win the 60 votes needed to cut off a potential filibuster.
"My job is to put together a bill that will become law," said Baucus, who wrote the bill before the committee and voted against the public option. "I can count, and no one shows me how to get to 60 votes with a public option."
