The Senate Finance Committee turned down a public insurance option as part of a healthcare reform bill on Tuesday.
The 15-8 rejection is a setback for public option supporters, including the House of Representatives, who see a public option as competition against private insurers.
Sen. Max Baucus, D-MT, was pleased with his committee's rejection of the public plan because he is trying to devise a bill that he thinks will get 60 votes and a reform package with a public plan would not gain enough support of the Senate, he said.