I'm coming to the conclusion that, while the public option is the right policy, now is not the right time. There is dwindling support in the Senate for such a plan (Lieberman just bolted on it too), we are looking at a ramp-up in Afghanistan, exploding deficits, and an economy whose labor-market and housing markets still have a ways to go before recovery. The Democratic party risks unnecessarily tearing itself to pieces over the public option at the moment, which would spell a bad moon rising for the midterms.
I think they should pass a bill with the health insurance reform provisions they have now, which includes mandates for coverage, guaranteed issue, reformed incentives on testing, preventive care and primary-care physician training, and a number of other genuinely good things in the current version. I actually think the Democrats should not sign on to the co-op seed grants in the current Senate Finance bill because co-ops are a bad idea and it would be a waste of $4-10 billion for nothing. I think the first step would be to pass this health insurance and incentives legislation now, without the public option or co-ops, and such a bill would get a pretty substantial victory in the Senate.
While doing this, the Democrats and the president can take a very public "we're not done on the public option, it's coming again to a theatre near you" attitude. The next time they raise it, either right after the midterms or after an Obama reelection in '12, hopefully when the economy has improved, they should reintroduce the public option again and bundle some tort reform with it to draw some bipartisan support, and make the push again.
Sometimes, being right isn't enough; timing can be more important.
Hmmm...can we afford to wait, though? We need to seize the hour and understand that we may be wiped out in 2010, regardless of our efforts. If we succeed and get wiped out, at least we will still have Obama there to veto any counter-reform....and after this, we will have more of an incentive to do "moderate hero" things like Immigration Reform, Welfare Reform and Social Security Reform. We would also have more credibility to nominate justices to the Supreme Court if a vacancy arrives. What can wait until after the next election is cap and trade.