Washington, Oct 27 (Inditop.com) President Barack Obama’s preference for a public health insurance option as part of his proposed health care reforms received a boost with the Senate majority leader backing a bill allowing states to opt out.

Senator Harry Reid, who has been melding legislation from five different committees, announced Monday that he intends to move forward next week with a health care bill that includes the ‘opt out’ version of the public health insurance option.

While the more liberal Health Committee included a form of the public option in its bill, the more conservative Senate Finance Committee did not. House Speaker Nancy Pelosi has insisted the House of Representatives will pass a health care reform bill including a public option.

Obama has indicated his preference for legislation including a public option, but has not indicated he would a veto a bill without one.

Several top Democrats have previously expressed concern that the traditionally conservative Senate would not pass a bill with a public option.

The public option is “not a silver bullet,” but will ensure healthy competition and a more level playing field for consumers, Reid told reporters on Capitol Hill. Public opinion polls show that a wide majority of Americans support a public option, he said.

Reid’s health care bill, which will be given a cost assessment by the non-partisan Congressional Budget Office, also includes a provision from the Finance Committee bill allowing for the creation of non-profit health care cooperatives that would negotiate collective insurance coverage for members.

Reid hopes his compromise will appeal both to liberal senators insisting on a public option and to conservatives wary of a government-run plan, CNN said citing several Democratic sources.

CNN also cited unnamed sources as saying that Reid does not yet have firm commitments for the compromise from 60 senators – the number required to break a Republican-led filibuster. It is likely he would need that number for even a vote to begin Senate debate.