The Congress intends to focus on insurance cooperatives and insurance exchanges as private sector solutions

The Obama administration in the US has hinted that it was on the verge of abandoning a government-run insurance option in its health care overhaul – reported in Chicago Tribune.

The proposals for a public health insurance plan have galvanised the Republicans, and even some Democrats, who charge that a government insurer will have unfair advantages and destroy the private health insurance market in the US.

Meanwhile, the Congress intends to focus on insurance cooperatives and insurance exchanges as private sector solutions. The US President has already proposed forming exchanges, virtual marketplaces where private insurers would compete for consumers’ business.

Health and Human Services Secretary, Kathleen Sebelius and White House spokesman, Robert Gibbs stated that a government insurance option is not essential, but keeping insurance affordable is – quoted the newspaper.