The public option plan was born after President Obama campaigned for a government insurance program that would create a non-profit competitor to private insurers, claiming it would drive down costs. Bills have been drafted by both the House and Senate to include such a plan – the public option plan – but lately, they have caused both bills to stall till a consensus is reached.
Senate Majority Leader Harry Reid proposed a clause for a state opt-out version. This solution has been met with opposition, both by Republicans and several Democrats.