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by The Associated Press

Reid, D-Nev., said individual states would have the choice of opting out of the program. Read more......

His announcement was cheered by liberal lawmakers, greeted less effusively by the White House and noted with a noncommittal response by Democratic moderates whose votes will be pivotal.

Sen. Olympia Snowe of Maine, the only Republican to vote with Democrats on health care so far this year, issued a statement saying she was "deeply disappointed" in the approach the Democratic leader had chosen.

Reid said, "While the public option is not a silver bullet, I believe it’s an important way to ensure competition and to level the playing field for patients with the insurance industry." He said a long-delayed Senate debate on President Barack Obama’s call for an overhaul of the health care system would begin as soon as the Congressional Budget Office completes a mandatory assessment of the bill’s cost and impact on coverage.

Changes on the public option — and numerous other provisions in the measure — are possible during a debate expected to last for weeks.

$900 billion price tag
And officials said Reid had prepared several variations of key provisions so he could make adjustments in his bill at the last minute and still make sure he was within Obama’s target of a $900 billion price tag over a decade.