From Yahoo News:
The obstacle that loomed largest was the Medicare expansion proposal, vestige of a monthslong debate over the role of government in the newly revised health care system. It emerged last week as part of a framework agreement between moderates and liberals. Additionally, the proposal calls for creation of nationwide plans run by private insurance companies under the supervision of the Office of Personnel Management, which oversees health plans for members of Congress and other federal workers.
The two provisions were seen as a replacement for Reid's initial call for a government-run insurance plan to compete with private industry, a liberal priority opposed by moderates as an unwanted government intrusion. The one unrelated to Medicare is expected to survive, but without standby authority for the OPM to set up a government-run plan if no private coverage options materialize.
I was unaware that the non-profit OPM system was still going to be part of the bill, but that really changes a great deal. Previously, I've been cynical about the notion of "pass this bill now, then pass the public option and Medicare buy-in through reconciliation right afterwards," as I figured that no one would want to re-visit HCR after passing this bill. However, I can see the possibility that, although there's no trigger currently attached to the OPM plan, if that plan
did fail to draw private insurers to offer coverage, that failure could be used to introduce a "corrective" bill that would provide for the same public option (and, possibly, Medicare buy-in) that should have been part of this bill -- but, since it would be a bill (unlike this one) only dealing with funding and not with regulating an industry, it could more easily be put through via reconciliation...and, thus, could get around Emperor Lieberman's pocket veto.
Maybe I'm being unduly optimistic, but that gives me more hope that we could still get a public option through reconciliation than I had before.