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Healthcare Battle Heats Up

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A week after health insurers warned that reform would raise premiums for Americans with coverage, President Obama opened a new line of attack on something insurers have enjoyed since 1945. "A privileged exception from our anti-trust laws, a matter that Congress is rightfully reviewing."

Congress passed the exemption then so states would regulate health insurance.

Critics claim it keeps prices high.

Insurers deny there's any price fixing.

They're fighting efforts to repeal the exemption.

Senator Patrick Leahy of Vermont said, "I believe this would lead to more competition, lower insurance costs, and basically what it says is nobody's above the law."

In the meantime, Democrats remain at odds over the public option.

Senator Chris Dodd of Connecticut said, "I think the public option makes the most sense."

Opponents are making their criticism more specific.

Senator Kent Conrad of North Dakota said, "I will not support any public option tied to Medicare levels of reimbursement."

Could Democrats agree on higher, negotiated, rates to hospitals and providers or allowing states to opt out of a public plan?

Republicans are wary.

Senator Jon Kyl of Arizona said, "What they're really good at doing is putting it in a different package, putting a different color ribbon around it and saying, Well, that's--it's only the public option. If things don't work out in a couple of years or something like that.� And that's the concern that a lot of Republicans have."

A health care battle that's tested again this week.

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