Obama Backs Public Option, Exchanges, Cap on Out-of-pocket Costs

"We addressed a number of issues at hand and the next steps moving forward. We agree we need to take control of healthcare costs and make health insurance affordable for families and small businesses," Baucus said in a statement after meeting with the group.

Whether an agreement emerges from the Senate panel that would garner specifically bipartisan support remains to be seen. But a measure that calls for state co-ops—rather than a public option—to assist in providing coverage is expected to be included.

New taxes are also said to be considered in the Finance Committee proposal that would tax insurance companies on their most expensive health plans. The result is expected to be that employers would purchase cheaper, less generous coverage for employees—and thereby reducing the overuse of medical services.

On the House side, Speaker Nancy Pelosi (D-CA) last week again affirmed the placement of a public option in healthcare reform legislation. "A bill without a strong public option will not pass the House, she said last week. "Eliminating the public option would be a major victory for the insurance companies who have rationed care, increased premiums, and denied coverage."