This says Sen. Reid will have public option with opt out clause for states....meaning default will be for some version of public option. The 'version' refers to the payment rate standard. Medicare, Medicare +5%, public negotiate payment rates like private insurance, presumably on state by state basis.
They are apparently going to have multiple bills scored, who differ only by public option provisions, so if the above fails a cloture vote (60 say lets stop talking and start voting), then will come a triggered public option favored by Olympia Snowe (start out with no public option, then it comes in state by state based on inability to get to set cover level and/or lack of reduction in health insurance premium growth).
But, most people writing say there are only 57 or 58 votes to cut off debate for the opt out public option. Maybe there will be some serious floor debates in Senate with outcomes not clear...Seems as though Reed would rather lose in the open on this, then have it go down in the back room that he is in charge of. Also, in one sense this can let the Repubs have a successful filibuster, say they killed the ending of a America as we know it by 8 Million people signing up for government sponsored public insurance (when we already have 105 Million people covered by Medicare and Medicaid!) and then the Dems offer the trigger and move ahead.