Obama seen flexible on 'public option'

WASHINGTON, Aug. 16 (UPI) -- U.S. President Barack Obama's press secretary hinted Sunday at flexibility in the White House's commitment to a "public option" in health insurance reform.

Robert Gibbs, appearing Sunday on CBS' "Face the Nation," said using taxpayer seed money to establish a public competitor to private health insurers had been has been supported by Obama "thus far," indicating to some analysts the president might be open to an alternative to the public option, such as a non-profit cooperatives.

"What I am saying is the bottom line for this for the president is, what we have to have is choice and competition in the insurance market," Gibbs said. "Again, if you are in a place in this country where you only get one choice, how in the world are you going to be able to convince anybody that you are driving down costs when you don't have to compete against anything?"

Gibbs said the administration would "look forward" to the ideas of Sen. Charles Grassley, R-Iowa, and others on the Senate Finance Committee. Grassley in the past has indicated support for co-ops, in which states, regions, counties and groups could band together in non-profit entities to negotiate for lower prices from healthcare providers.