Public Option May Be Dropped From Health Plan

Health Secretary Kathleen Sebelius says the administration is open to letting consumer-owned nonprofit cooperatives sell health insurance in competition with private industry, instead of a government-run program.

Sebelius says the Obama administration still believes there should be choice and competition" in the health insurance market, but that a public option is "not the essential element."

Such a shift is something Sen. Richard Shelby says opponents of the president's proposed overhaul should consider. The Alabama Republican says he sees insurance co-ops as "a step away from the government take over of the health care system."

Sebelius spoke on CNN's "State of the Union." Shelby appeared on "Fox News Sunday."