Um…really? As Newsbusters notes that’s not what Obama said in July:

(A)ny plan I sign must include an insurance exchange: a one-stop shopping marketplace where you can compare the benefits, cost and track records of a variety of plans – including a public option to increase competition and keep insurance companies honest – and choose what’s best for your family.

But it appears that it’s not a deal breaker if he doesn’t get it:

President Obama himself said that “the public option, whether we have it or don’t have it, is not the entirety of healthcare reform.”

Why? The answer is simple:

“The fact of the matter is there are not the votes in the United States Senate for the public option,” North Dakota Democratic Sen. Kent Conrad, a key Finance Committee negotiator, said today.

Apparently they never did.
Is it because the Republicans opposed the government takeover of healthcare? Apparently, the AP seems to think so:

Facing mounting opposition to the overhaul, administration officials left open the chance for a compromise with Republicans that would include health insurance cooperatives instead of a government-run plan. Such a concession probably would enrage Obama’s liberal supporters but could deliver a much-needed victory on a top domestic priority opposed by GOP lawmakers.

But even the dimmest among the reporters and readers of the AP most know that the Republicans have absolutely no ability to stop legislation, the Democrats have a super majority in the Senate, they don’t need to compromise with the Republicans. No, the problem is the moderate Democrats in the Senate. They will not sign off on a public option because they know that even if it was popular with the public now, it would not remain the case when they face the voters. Why? Because they know that millions would lose their insurance and wind up with the public option and realize that they were lied to when Obama said they could keep their current healthcare insurance (he has no way to guarantee employers won’t dump their employees when he offers them a government subsidized alternative to their current healthcare system).
Evidently, moderate Democrats like Conrad aren’t stupid and are trying to come up with a workable solution that allows Obama to save face and give him the competition he says he wants and is needed for true reform:

Instead of a public option, the negotiators are considering a plan proposed by Conrad to create nonprofit health insurance cooperatives that could negotiate coverage as a collective for their members.
Conrad said such cooperatives would provide the competition sought by Obama and Democratic leaders to force private insurers to hold down costs and improve practices. The government would put up initial funding to provide required reserves but would have no other role, he said.
“It’s not a public plan at all in terms of government running it,” Conrad said.

But, of course, the lefties are not happy! Dean is even threatening primaries for any Democrat that votes against the public option. But I wouldn’t worry if I were you, lefties. We know that Obama will probably back down from this backing down if the MSM makes a big enough stink over it. And besides, we all know that you can get what you want from Pelosi in conference. No worries.
BTW, we’re not the only country looking to reform their healthcare. (via)